All economic activity is concentrated on Diego Garcia, where joint UK/US defence facilities are located. Construction projects and the operation of various services needed to support the military installations are carried out by military and contract employees from Britain, Mauritius, the Philippines, and the USA. There are no industrial or agricultural activities on the islands. Until the creation of the marine sanctuary, the licensing of commercial fishing provided an annual income of about $1 million for the territory.
Transportation:
In terms of transportation on Diego Garcia, the island has short stretches of paved road between the port and airfield and on its streets; transport is mostly by bicycle and on foot. The island had many wagonways, which were donkey-hauled narrow gauge railroads for the transport of coconut carts. These are no longer in use and have deteriorated.[43]
Diego Garcia’s military base is home to the territory’s only airport. At 3,000m long, the runway is capable of supporting heavy US Air Force bombers such as the B-52 and would have been able to support the Space Shuttle in the event of a mission abort. It also has a major naval seaport and there is also a marina bus service along the main road of the island.
Yacht crews seeking safe passage across the Indian Ocean may apply for a mooring permit for the uninhabited Outer Islands (beyond Diego Garcia) but must not approach within 3 nautical miles, land on or anchor at islands designated as Strict Nature Reserves or the nature reserve within the Peros Banhos atoll.
Unauthorized vessels or persons are not permitted access to Diego Garcia and no unauthorized vessel is permitted to approach within 3 nautical miles of the island.
Flag of the British Indian Ocean Territory (BIOT):
The flag of the British Indian Ocean Territory (BIOT) is similar to the flags of other British dependencies and colonies as it has the Union Flag in the upper hoist-side corner. The palm tree and crown are symbols of the Indian Ocean Territory. The Flag was initially intended to be used by the Commissioner but has gained semi-official status as a territorial flag for use on land.
The flag contains the Union Flag in its canton (upper hoist quarter). It depicts the waters of the Indian Ocean, where the islands are located, in the form of white and blue wavy lines. The flag also depicts a palm tree rising above the St Edward’s Crown. It is understood that the flag, which was granted by Queen Elizabeth II on the 25th anniversary of the BIOT in 1990, is that of the Commissioner and has only semi-official status.
Given that it is impossible for civilians to visit the British Indian Ocean Territory, it is not clear how widely this flag is used. However, a video released by the Naval Support Facility on Diego Garcia shows a scene where the flag is being flown on land within the territory. The only settlements on the Islands are the Anglo-American naval and air facilities.