Overview

The Basics

Aruba is a small island, just 75 square miles, located just 19 miles north of Venezuela in the Caribbean Sea. Its capital is Oranjestad. It is easily accessible by air with flights leaving daily to major cities throughout Latin America, the United States, and Europe.

Aruba has a tropical climate, and its temperature remains around 28 degrees Celsius throughout the year. Its rainy season is between October and January, but it lies outside the hurricane belt and thus is not affected by tropical storms. Its terrain is relatively flat with only a few hills and little vegetation.

Despite the fact that a native dialect called Papiamento is widely spoken, the official language of Aruba is Dutch. In addition to these two languages, English and Spanish are commonly spoken.

Aruba is home to approximately 100,000 people most of whom are ethnically Carib Amerindian, white, or East Asian.

The island was originally inhabited by Arawak Indians. The first Europeans, the Spanish, arrived on the island in 1499, and they transported the majority of the native inhabitants to the island of Hispaniola. In 1642, the Dutch took over the island and maintained control of the island except for a short time in the early 1800s when the British took over.

Government and Economy

Aruba, which separated from the Dutch Antilles in 1986, is an official part of metropolitan Holland and is considered a European Union territory. As such the Netherlands retains responsibility for it. There is no independence movement within Aruba, and in 1990 Aruba voluntarily surrendered its right to become independent of Holland.

Aruba is both politically and economically stable and its official head of state is the Queen of the Netherlands. A Governor General who is appointed for a six-year term locally represents her.

Holland maintains control over matters such as defense, judicial appointments, applications for citizenship, and foreign affairs while Aruba is fully responsible for all internal island matters. Aruba has had a constitution of its own since 1986 as well as its own democratically elected legislature called the Staten. The Staten sits in the capital, Oranjestad. In addition to its 21-member legislature, Aruba has an executive branch consisting of the Governor and a Council of Ministers consisting of 7 members chosen and headed by the Prime Minister, who along with the deputy prime minister, is elected by the Staten.

The highest court in Aruba is the Dutch Supreme Court in Le Hague. Aruba’s legal system has also been strongly influenced by English common law.

Aruban citizens carry EU passports and have all the rights of other EU citizens since Aruba is an overseas territory of the Kingdom the Netherlands.

With regards to the common import tariff of the EU single market, Aruba can freely export externally sourced products without additional processing into the EU. Any product that originates in Aruba or has undergone “substantial transformation” in Aruba is considered to have originated in the EU.

It is important to note, though, that Aruba is not part of the EU fiscal area and neither applies Dutch or EU taxes with the exception of the EU’s Savings Tax Directive, which became effective on the 1st of July 2005.

Aruba’s economy is strongly dependent upon tourisms, oil refining, offshore financial services, and manufactured exports. In 1995, following the implementation of multiple incentives designed to attract offshore banking, insurance, and other financial services, Aruba created the post of Financial Services Commissioner to supervise and regulate this sector of the economy. The main catalyst of the development of its financial services industry was its split with the Dutch Antilles in 1986, which released Aruba from having to be a party to and to rely double taxation treaties.

As of 2004, Aruba had a per head GDP of $21,8000 and is considered to have one of the highest standards of living in the West Indies. Its unemployment level is roughly 1% and there are numerous unfilled jobs. Despite a strong dip in the tourism industry following the 9/11 attacks, Aruba’s economy continues to grow at about 2.5% per year.

Despite generally favorable reviews about Aruba’s economy, the IMF made note of Aruba’s deteriorating fiscal situation in the fall of 2005 amidst fears of excess government spending and possible devaluation of the local currency, the florin.

Foreign Affairs

Aruba is a member of the Caribbean Community (CARICOM), outlying territories of European countries, and the Dutch Empire.

Canadian, USA, and EU nationals can enter Aruba without a tourist visit and can stay for up to 180 days provided they produce a valid passport and a return or onward ticket. Proof of sufficient funds to support their stay may be requested as well.