Population survey reveals disputed islands' population has not grown since 2006 – and some residents are getting worried

This article is more than 8 years old

This article is more than 8 years old

A census in the Falkland Islands has found that fewer than a third of people consider themselves British, while 59% say their national identity is "Falkland Islander".

The survey also puts the average annual income at $32,213 (£20,000) – much higher than Argentina's $9,620 as of last year, or that of the Falklands' other Latin American neighbours.

Argentina refuses to deal directly with the Falkland Islands' local government, accusing the UK of running an illegal colony on what they call the Islas Malvinas. The income figure underlines how much things have changed since before the 1982 war.

Back then, global wool prices had bottomed out and invading Argentinian soldiers were told they would be welcomed by poor and oppressed tenant farmers.

Instead, they encountered a stubbornly defiant population that helped British troops retake the islands.

Sheltered by continued military support, Falklanders have seen their livelihoods greatly improve since the war, with revenue flowing in from fisheries, tourism and offshore oil development.

But the census also reveals an existential challenge: the islands' population has not grown since the last survey in 2006. There are only 2,563 residents after civilian contractors and British military personnel and their dependents are excluded.

The population is aging rapidly, too, with the ranks of people older than 65 increasing by 14% in the last six years.

"If the Falklands is to progress we need to increase our population," said Les Harris, a 73-year-old retired power station manager, who was born in Chile.

The census shows unemployment is at 1%, with one-fifth of all workers having more than one job. The largest employer by far is the government, at 28%, followed by agriculture (11%) and hospitality and tourism (11%).

Offshore oil and gas development could bring sudden wealth to the islands if several drilling efforts strike it rich. But the industry currently employs just 26 islanders, and there simply are not enough people around to work the jobs created by a growing economy.

The numbers show "there is still work to be done on immigration policy," said Dick Sawle, a legislative assembly member.

"It is vital that we get this right and exercise adequate control whilst at the same time attracting to the islands people who will help us maintain an active and vibrant community."

The Falklands have one of the world's most restrictive immigration policies: newcomers are not allowed to apply for islander status, giving them voting rights among other things, until they have completed seven years of residency.

That can be done only by repeatedly renewing temporary labour contracts. Even then, only 40 people can apply each year, and not all are accepted.

The census says 70% of the population – 1,973 people – are Falkland Islanders or Falkland Island status holders.

Only 4.3% – 121 people – have the permanent residence permits that enable them to apply for islander status.

"We don't have a big enough workforce to get things done," said Tim Cotter, an executive at Falklands Islands Development Corp.

"In the short term, we could employ seasonal workers from St Helena and South America, and those who like it, and fit in, will stay. That is the way the population has grown since the beginning."

Government officials have said that if they do not carefully control immigration, Argentinians could move in and vote to reclaim the territory.

But many islanders also have expressed doubts about Britain's willingness to continue defending its South Atlantic fringe.

The result has been zero population growth in one of the world's most underpopulated and unspoiled places, a set of islands about the size of Northern Ireland or the US state of Connecticut, with mountain ranges and wide plains, meandering rivers and white-sand beaches, plentiful wetlands and an incredible variety of wildlife.

Three quarters of the population lives in the capital, Stanley, while several hundred people live scattered on remote farms around the islands.

Outside town, there are only several gravel roads, and many people depend on boats or small planes to get around.

The government has plans for a permanent port for bigger oil, fishing and cruise ships, and hotels and paved roads so visitors can stay long enough to see historic sites and wildlife.

Expanded drilling would require a dedicated freshwater system, and economic growth will require more windmills for the wind energy that already provides a third of the islands' electricity.

If the Falklands get even a fraction of the $10.5bn in taxes and royalties some industry analysts have predicted will flow from just one of the offshore oil fields being explored, islanders could become richer than Saudi oil barons. But as this year's census shows, that future has yet to arrive.