Sector profile: Tourism Investment
Credit: TOURISM TONGA
its desire to start a Honiara–Port Moresby service. QantasLink began a Cairns–Port Moresby service in mid 2010. The future of its codeshare service with Air Niugini was still unknown at the time of writing. Fiji’s national carrier Air Pacific is reintroducing jet-operated international flights from New Zealand into Nausori Airport near Suva following upgrading of the airfield. The airline also plans to start a Fiji–Rarotonga service. Former Virgin America Executive Dave Pflieger recently took over the CEO’s mantle at Air Pacific. Outgoing Air Pacific CEO John Campbell told Islands Business that while the Fiji Government has largely kept a ‘hands-off stance in relation to Air Pacific,’ their interests have been aligned. ‘We have been very well aware of government’s desire for the development of its “Look North” policy. That also fitted in with the airline’s own strategy, so it’s a happy harmony for the two.’ Campbell says the recent opening of the Hong Kong route will make a substantial contribution to Fiji and to tourism. Aside from the new Air Pacific service, the Cook Islands will also see a new Sydney–Rarotonga service via Air New Zealand on a fourmonth trial late 2010. Pacific Blue started an additional flight between Rarotonga and Auckland in July 2010. Australia and Palau are now connected. Palau-based airline Pacific Flier has commenced a weekly service between Koror and Australia’s Gold Coast, adding to its Guam and Manila services.
The Vava’u islands group in Tonga is the planned location for two Warwick International Hotels resorts.
The hotel was established by PNG superannuation firm NASFUND and the Lamana Group. The Solomon Islands’ National Provident Fund has a 10% stake. The Kitano Mendana Hotel in Honiara has recently opened a new wing and Western Province hoteliers are also undertaking new investment—for example at the Gizo Hotel—but air access to this area needs improvement. Tonga expects growth of 10% in tourist earnings in 2010, supported by policy initiatives such as the Tourism Action Plan and new investment. The Kingdom had a difficult 2009. Although arrivals reached the 50,000 mark for the first time, receipts fell by 25%, with the tsunami in Niuatoputapu and the sinking of the Princess Ashika ferry compounding difficult global economic conditions. Tonga suffers from an absence of high-end resorts and underinvestment in marketing but planned investment in hotels and resorts, and new cruise ship facilities and a marina at Vuna Wharf will improve prospects. Vanuatu is also feeling the impact of regional competition. Vanuatu Tourism Office general manager Annie Niatu says positive growth is possible if significant marketing activity is undertaken in the major overseas markets. ‘2009 was a successful year for the industry, visitors were up around 11% and for the first time ever Vanuatu hit 100,000 visitor arrivals.’
Cruise ship opportunities Cruise ships continue to be an important part of the tourism sector of a number of Pacific Island countries, particularly New Caledonia, PNG, Vanuatu, Samoa, Fiji and Solomon Islands. Their stays may be short, but the cruise operators and their passengers contribute to the local economy through day trips, purchases of local food and handicrafts, wharfing, refuelling and restocking. The South Pacific Tourism Organsiation (SPTO) has stated that there is room for much improvement in the sector, particularly in the variety and quality of land excursions, and the safety and security of passengers during these day trips. Guam’s Visitors Bureau believes the cruise sector is an underdeveloped opportunity, and would like to turn the island into a permanent port of call for cruise ships. In 2009, Guam hosted 7984 visiting cruise ship passengers. A similar number is anticipated for 2010.
Looking north Pacific Islands countries were out in force during the 2010 World Expo in Shanghai, which expected over 70 million visitors during its sixmonth life. Fifteen countries were represented in the Pacific Pavilion. SPTO CEO Ilisoni Vuidreketi says 12 member countries are planning or implementing visa-free policies for all Chinese tourists: Cook Islands, Fiji, French Polynesia, Kiribati, New Caledonia, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. Regional tourism leaders are looking to the results of Air Pacific’s Hong Kong–Fiji service as a test of the market into South China and other parts of Asia, while a new partnership agreement between the Pacific Islands Forum Secretariat and the SPTO aims to help small-scale tourism operators access markets such as China. In Guam and the Northern Mariana Islands, government officials have also been consistently lobbying for a visa waiver program for Chinese tourists. Tourism leaders believe the Guam industry could gain an estimated US$1.5 billion in additional revenues by 2013 if a visa waiver program for Chinese and Russian visitors is fully implemented. In November 2009 Hong Kong passport holders were permitted to travel to Guam visa-free for up to 45 days, leading to an immediate and significant increase in arrivals from Hong Kong. The Guam Visitors Bureau recently launched a Chinese website to support this market.
Skies get busier The entry of low-cost carriers has transformed the tourism industry across the Pacific Islands region. Virgin Blue’s Pacific services now extend to Vanuatu, Samoa, Solomon Islands, PNG, Tonga, Cook Islands and Fiji. However, Virgin Blue’s new Chief Executive Officer John Borghetti has indicated that the airline may consolidate its Virgin Blue, Pacific Blue and V Australia brands. Australian media have also reported that the viability of some Pacific Island services will be reviewed. American carriers are also expanding their reach. Continental Airlines recently entered into a reciprocal codeshare agreement with Air New Zealand on services via Rarotonga, Apia and Tonga. Continental Micronesia and United Airlines are now codesharing through Fiji. Continental Airlines also added a new year-round flight service between Guam, Majuro and Honolulu in June, which supplements the current three-weekly island hopper service between Guam and Honolulu via Chuuk, Pohnpei, Kosrae, Kwajalein, and Majuro. Delta Air Lines has added a daily service between Guam and TokyoNarita following its merger with Northwest Airlines. Air service to PNG has improved, with Solomon Airlines indicating
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