Forestry

Dominica has the potential for a lumber industry. Some 46,000 hectares (114,000 acres) are classified as forest, representing 61% of the total land area. In 1962, Canadian experts produced a study indicating that over a 40-year period the island could produce a yearly output of 22,000 cu m (800,000 cu ft) of lumber. Before Hurricane David, annual output had reached about 7,500 cu m (265,000 cu ft). There are some 280 hectares (700 acres) of government land allocated to commercial forestry and about 100 hectares (240 acres) of forestland in private hands. Commercially valuable woods include mahogany, blue and red mahoe, and teak. Total imports of forest products in 2000 amounted to $10.3 million.

Mining

Dominica's mining sector played a minor role in its economy. Pumice was the major commodity extracted from the island for export, and Dominica produced clay, limestone, volcanic ash, and sand and gravel, primarily for the construction industry. There is some mining potential in Dominica, especially in the island's northeast where there are believed to be deposits of copper.

Dominica's small manufacturing sector is almost entirely dependent on agriculture, and the island has built up a handful of successful industries specializing in soaps and other agricultural byproducts. The largest manufacturer is Dominica Coconut Products, controlled by Colgate-Palmolive, which produces soap from coconuts. The factory has an agreement to sell an estimated 3 million bars of soap each year to Royal Caribbean Cruise Lines. Dominican soap is also exported throughout the region, but has recently encountered intensified competition from other regional producers, especially in the important export markets of Jamaica and Trinidad and Tobago.

There are four plants to process limes and other citrus fruits; two bottling plants; two distilleries; four small apparel plants; and four small furniture factories. Dominica exports water to its Caribbean neighbors; shoes, cement blocks, furniture, and soap and toiletries are also exported. Home industries produce some leather work, ceramics, and straw products.

Since the 1990s, the small manufacturing sector has been expanding at a modest pace, including electronic assembly, rum, candles, and paints. The Trafalgar Hydro Electric Power Station is now operational, making the island virtually energy self-sufficient. Industry accounted for 23% of GDP in 2001.

Dominica has not yet been able to attract significant numbers of foreign manufacturers, partly because its wage rates are relatively high and partly because its infrastructure is not suited to high-volume manufacturing. Like other islands, it seeks to attract investors with tax concessions and other financial inducements, but several offshore manufacturing plants have closed after their duty-free concessions expired, normally a 10-year span.

Tourism

Dominica's tourist industry is in its infancy compared to other Caribbean islands. For many years its rugged terrain, lack of white beaches, and underdeveloped infrastructure prevented large-scale tourist development. In recent years, Dominica has successfully marketed itself as the "nature island of the Caribbean," seeking to attract eco-tourists interested in landscapes and wildlife. The government realizes that intensive tourism is incompatible with preserving the island's eco-system and in 1997 signed an agreement with Green Globe, the environmental division of the World Travel and Tourism Council, to develop the island as a "model ecotourism destination." The 3-year program provided technical expertise on environmental management as well as helping to market Dominica through specialist travel companies.

At the same time, the government has encouraged a steady increase in Dominica's tourism capacity, with numerous new hotels being built and considerable investment in cruise ship facilities. The new cruise ship jetty at Prince Rupert Bay, near Portsmouth, has dramatically increased the number of ships calling annually and brought significant tourism-related opportunities to the formerly depressed community of Portsmouth. Annual tourist arrivals are estimated at approximately 200,000, of whom about 75,000 are stay-over visitors. The great majority are cruise ship visitors who spend limited time and money on the island. Revenues from tourism reached US$49 million in 1999.

Financial services

Dominica has tried to broaden its economic base by building up an offshore financial services sector. So far, a relatively small number of offshore banks and other international business companies have registered in Dominica, but the government is trying to attract more by making registration economical and easy. A Dominica-based IBC can, for instance, be formed over the Internet, and the government has also granted operating licenses to several Internet gambling companies. The ease with which such companies can be formed and the secrecy surrounding their operations have led some critics to allege that Dominica may be facilitating money-laundering and tax evasion.