ajmace said:
We are hoping to visit Grand Cayman in 2007.
Can those who know give their ideas on which are the best timeshares to go for.
Also tips on rental cars, groceries, restaurants etc. Is it true that the cost of living is high?
Thanks alot
Alan
Whether you consider the cost of living to be high in the Cayman Islands depends on what you're using for comparisons.
The cost of liquor is incredibly high because the Cayman government places a very heavy duty on imported liquors. You can see this quite easily when you compare the price of the same item between an on-island liquor store and a duty-free shop. For example: a one-liter bottle of Tortuga Rum, purchased at an on-island liquor store will cost around $35 USD. That same bottle of rum, purchased at a duty-free shop at the airport when you're leaving the island, will cost around $10 USD. That huge difference is duty, and you're paying duty on every alcoholic drink you consume in the Caymans, unless you take your liquor with you.
Much is made about the United States Dollar (USD) being worth less than the Cayman Dollar (CI). Strictly speaking, that's correct. The USD is worth about 80 cents when compared to the CI. Howver, the exchange rate, having been fixed for many years, has no effect on the cost of living. The thing that determines the cost of living, relative to anyplace else, is the final cost of the item in USD.
For example: Let's assume that the exchange rate is .8 CI to the USD (which it is), and that the exchange rate in Mexico is 10 Pesos to the USD (I'm rounding here for illustrative purposes). Let's further assume that a snorkeling trip on Grand Cayman costs $35 CI and that the same trip in Mexico costs 400 Pesos. The Grand Cayman trip is actually $4 cheaper in USD, even though the exchange rate in Mexico is more than 12 times higher. So, when determining the cost of living in comparison to other places, forget the exchange rate. For an accurate comparison, you must convert the rate in all places to a common denominator.
After converting to a common denominator, you'll find that the prices in the Cayman Islands, with the exception of liquor, are pretty much in line with the other Caribbean islands and they're even in line with Hawaii.
I've always considered the Cayman Islands to be a bargain when compared to some other destinations, such as Europe. Remember, the USD/CI exchange rate has been fixed for many years. The USD is worth the same, compared to the CI as it was four years ago. Four years ago, you could buy one Euro for 87 cents USD. Today, the cost of one Euro is $1.22 USD. That's a price increase of 40% in currency devaluation alone, for a trip to Europe.