UK’s Bold Strategy to Diversify Economies in Offshore Territories like British Virgin Islands, Gibraltar, and Montserrat with Tourism – What It Means for Global Travel and Transparency

Published on December 9, 2025

The United Kingdom faces mounting pressure to assist its overseas territories, including key tax havens like the British Virgin Islands, in diversifying their economies and shifting away from their reliance on secretive financial services. Margaret Hodge, the UK’s anti-corruption advisor, has recommended that tourism be a primary focus for these territories as a path towards economic transformation. In exchange for helping these regions boost their tourism industries, Hodge argues that the UK government should ensure these territories fully comply with financial transparency regulations. The call for support is aligned with broader efforts to tackle corruption and illicit finance, specifically money laundering, that have been associated with these offshore jurisdictions.

The Call for Economic Diversification in Offshore Territories

The British Virgin Islands, Gibraltar, and Montserrat are just a few of the UK’s overseas territories that have long been hubs for international finance. These regions, while thriving as tax havens, have come under increasing scrutiny due to their secrecy in financial dealings. With international pressure mounting for financial transparency—particularly the publication of beneficial ownership registers—Hodge’s suggestion for developing alternative economic models comes as a response to the changing global landscape of finance and governance.

In her statement, Hodge emphasized the need for gentle persuasion rather than forceful mandates in encouraging these territories to embrace transparency. She pointed out that while these areas have historically thrived on financial secrecy, the UK has a responsibility to help them transition to sustainable economic models. With the UK’s push for greater transparency in place, the suggestion is to incentivize tourism development as an alternative source of income, reducing the dependency on less sustainable financial activities.

Boosting Tourism as a Solution for Economic Growth

Tourism offers a practical solution to the ongoing economic struggles faced by tax havens in the post-financial secrecy era. Hodge cited the British Virgin Islands as an example of a place that could significantly benefit from increased tourism. While the BVI boasts stunning beaches and a growing hospitality industry, its lack of an international airport capable of accommodating large flights has restricted its tourism potential.

Efforts to improve transportation infrastructure, such as building an airport that can handle direct flights from the US and Europe, would help to drive visitors to the islands. Supporting projects that develop these destinations into attractive, luxury tourism hubs could diversify their economies, creating jobs and reducing reliance on financial services.

For instance, regions like the BVI could leverage their natural beauty and historical sites, catering to upscale travelers seeking remote, luxurious destinations. The British government’s support could include funding infrastructure, promoting these regions through international travel campaigns, and fostering local tourism-related businesses.

A Changing Landscape for Financial Transparency

While promoting tourism, the UK government is also committed to addressing the longstanding issues of dirty money and money laundering tied to its overseas territories. Financial corruption has often been linked to offshore tax havens, with wealth from illicit sources flowing through these jurisdictions. As part of its anti-corruption strategy, the UK government has promised to implement stronger measures to trace the origins of illicit wealth.

As a result, there is a call for the UK’s overseas territories to publicly disclose the ownership of assets within their borders. This includes setting up registers that list the beneficial owners of companies and properties. However, transparency remains a contentious issue, with some territories, such as the British Virgin Islands, providing limited access to these registers. The government has made it clear that full transparency will be required, with further action to be taken if commitments are not met by next summer.

Travel Tips: Visiting the British Virgin Islands and Other Tax Havens

For travelers considering visiting tax havens like the British Virgin Islands or Gibraltar, there are a few practical tips to keep in mind:

• Traveling to the BVI: Due to the BVI’s current lack of an international airport for large flights, visitors must first fly into neighboring islands like Puerto Rico or St. Thomas before taking a smaller connecting flight. The region offers pristine beaches, eco-tourism opportunities, and luxury accommodations that appeal to high-end travelers.
• Sustainable Travel: As tourism increases, travelers should prioritize sustainability. The BVI, for example, is known for its coral reefs and wildlife reserves, which can benefit from eco-friendly tourism practices. Look for eco-conscious resorts and tours that preserve the region’s natural beauty.
• Cultural Insight: The British Virgin Islands and Montserrat are not just about their natural beauty; they also have rich histories and cultural attractions. Montserrat, for instance, has historical volcanic sites, including the Soufrière Hills Volcano, which offers insight into the island’s past.
• Luxury Travel: As part of the economic shift, there is a growing emphasis on luxury tourism. Travelers interested in exclusive experiences will find high-end resorts, private yacht charters, and exquisite dining options in these regions.

UK Government’s Next Steps in Financial Transparency

While the focus is on promoting tourism in the offshore territories, the UK government is also pushing forward with a comprehensive plan to address money laundering and financial secrecy in these jurisdictions. The anti-corruption strategy promises to review asset ownership, targeting trusts and corporate structures that allow illicit wealth to flow into the country unnoticed.

To combat the risks associated with illicit finance, the government is also exploring the extension of Know Your Customer (KYC) checks to include cultural and civic organizations, including museums and universities. This would prevent kleptocrats from laundering their reputations through donations to such institutions, a tactic often employed to clean their ill-gotten gains.

The Path Forward for Offshore Territories and the UK

The call for tourism development, paired with stricter transparency laws, offers a dual approach to the economic challenges faced by offshore tax havens. Supporting the tourism industry not only provides a sustainable economic model but also helps integrate these territories into the global economy in a more transparent and accountable manner. As the UK works to strengthen financial transparency, the transformation of its overseas territories into thriving tourism destinations could be a pivotal moment for both their economic futures and their role in global finance.