Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis 15 customers. The impact of these  adjustments on earnings totalled $0.4  million.  visitors are stay-over visitors who  occupy the hotels. Cruise arrivals have  an indirect impact as they affect the  opening hours of the establishments  operating for that market. The Cayman Islands have two  main industries - financial services  and tourism. These sectors were  not immune to the effect of the  global financial crisis. A fall in Gross  Domestic Product (“GDP”) of 4%  occurred in 2010 (2010 Cayman  Islands’ Annual Economic Report;  released July 2011) as compared to a  decrease of 7.5% in 2009. The 2011  Semi-Annual Economic Report was  released by the Government in late  September 2011 and reported that  the Cayman Islands’ real GDP grew by  an estimated annualised rate of 1.3%  for the first half of 2011. The tourist demographic is largely  comprised of visitors from the US.  In 2011, 79% of air arrivals to the  country were citizens of the US. As  such the US economy largely impacts  that of the Cayman Islands. 2011 air  arrivals were up 7% when compared  to 2010 and cruise arrivals were down  12% when compared to 2010. Air  arrivals have a direct impact on the  Company’s sales growth as these  The Government’s 2012/2013  Strategic Policy Statement document  sets out its fiscal projections and  the Government’s medium-term  poilicies and initiatives underlying  these projections. The document  details Government’s key medium- term strategies as agreed with  the United Kingdom Foreign  The 2010 Cayman Islands’ Annual  Economic Report listed the 2010  population at 54,397 as compared  to 57,009 estimated in 2008 due  to declines in the non-Caymanian  workforce. Cayman has a high  proportion of foreign nationals that  provide labour in various sectors  of the economy. The 2011 Cayman  Islands’ Semi-Annual Economic  Report listed work permits as at June  2011 at 19,920, a 7.5% decline when  compared to the same period in  the prior year but an increase when  compared to the first quarter figure  of 19,877. Government attributes this  decrease to “the sharp slowdown in  construction, the largest employer of  foreign labour”. (All data is sourced from the Cayman  Islands Government, Cayman Islands  Economics and Statistics Office, Cayman  Islands Monetory Authority and Cayman  Islands Department of Tourism websites:  www.gov.ky; www.eso.ky; www.cimoney.com.ky and www.caymanislands.ky). and Commonwealth Office. The  agreement includes reform of the  public sector through limiting new  borrowings, reallignment of existing  revenue base, reducing operating  expenditure and consideration  of private finance initiatives as  an alternative source of capital  funding. The document also states  Government’s commitment to  enhancing tourism and financial  services, supporting small businesses  as well as maintaining a vibrant and  stable economy. The table  “Summary of Cash Flows” on page 16 outlines the summary of  cash flows for Fiscal 2011 and Fiscal  2010. Liquidity and Capital Resources The Economy Cayman Islands Gross Domestic Product at Constant 2010 Prices $ millions 2008 3,000 3,100 3,200 3,300 3,400 3,500 3,600 2010 2009 2006 2007 2011  (projected)