Tourism in South Pacifics Economy

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• Tourism in South Pacifics Economy
• Tony Everitt

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TOURISM IN SOUTH PACIFICS ECONOMY
Value USD billions
Visitors millions
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TOURISM IN SOUTH PACIFICS ECONOMY
Value USD billions
TWO BILLION
Visitors millions
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TOURISM IN SOUTH PACIFICS ECONOMY

• In 2004 (conservative estimates)
• USD450M direct Government revenue
• Over 200,000 jobs
• Over 60 local retention

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TOURISM IN SOUTH PACIFICS ECONOMY

• Retention of Tourism
• Leakage pessimists do us a disservice.
• The analysis uses muddled thinking and poor
  arithmetic to generate the wrong answer to an
  inappropriate policy question

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TOURISM IN SOUTH PACIFICS ECONOMY

• Retention of Tourism
• The exaggerated claims divert attention from an
  important challenge at hand
• boosting the linkages between tourism and the
  rest of the local economy.
• Overseas Development Institute, UK

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TOURISM IN SOUTH PACIFICS ECONOMY

• UNESCAP 2006 economic report
• Increased receipts from tourism helped Pacific
  island countries to maintain their balance of
  payments and foreign exchange reserves

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TOURISM IN SOUTH PACIFICS ECONOMY

• UNESCAP 2006 economic report
• GDP growth in Vanuatu 7.
• As in Fiji, tourism has been important for
  growth as it generates three quarters of export
  earnings and accounts for one sixth of the
  economy

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TOURISM IN SOUTH PACIFICS ECONOMY

• UNESCAP 2006 economic report
• Real GDP in Samoa grew by 5.1 in 2005, the
  highest rate since 2001construction, commercial
  and tourism activities were strong as Samoa
  prepared for the South Pacific Games.

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TOURISM IN SOUTH PACIFICS ECONOMY

• UNESCAP 2006 economic report
• economic growth in Pacific ranged from slightly
  less than 2 in Tonga to over 6 in Vanuatu
• cf 3 average for Tourism

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TOURISM IN SOUTH PACIFICS ECONOMY

• UNESCAP 2006 economic report
• upper end of economic growth range, eg. Vanuatu,
  Papua New Guinea, and Samoa, also fastest growers
  in Tourism
• Visitors grew by 10, 12 and 14, well above 3
  regional average.

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TOURISM IN SOUTH PACIFICS ECONOMY
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TOURISM IN SOUTH PACIFICS ECONOMY
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TOURISM IN SOUTH PACIFICS ECONOMY
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TOURISM IN SOUTH PACIFICS ECONOMY

• Market Portfolio Issues
• How high can share go?
• Law of diminishing returns

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TOURISM IN SOUTH PACIFICS ECONOMY

• Market Portfolio Issues
• How high can share go?
• Balance for risk
• NZD depreciation?

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TOURISM IN SOUTH PACIFICS ECONOMY
The housing market has now finally turned,
having recorded sharp declines in activity in
the past three months, with further softness in
market activity expected. National Bank of New
Zealand 14 September 2007
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TOURISM IN SOUTH PACIFICS ECONOMY
1990
2000
2000
2007trend
2008trend
2009trend
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TOURISM IN SOUTH PACIFICS ECONOMY

• Market Portfolio Issues
• How high can share go?
• Balance for risk
• NZD depreciation?
• Australians looking to Asia

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TOURISM IN SOUTH PACIFICS ECONOMY

• Market Portfolio Issues
• How high can share go?
• Balance for risk
• NZD depreciation?
• Australians looking to Asia
• Short term/long term

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TOURISM IN SOUTH PACIFICS ECONOMY
October 24 Reducing Poverty Through Tourism
(UNESCAP) October 25 South Pacific Cruise
Strategy October 26 South Pacific Green Hub
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TOURISM IN SOUTH PACIFICS ECONOMY
Tourism is the largest, and fastest growing,
sector in the Pacific. It could be the largest
single contributor to Pillar 1 of the Pacific
Plan, Economic Growth
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• Tourism in South Pacifics Economy
• Tony Everitt