Promoting sustainable tourism in the Pacific Forum Island countries

Abstract

Tourism is vital to the sustainability and development of the Pacific Forum Island economies. Australia and New Zealand are major markets for these island nations followed by the US and Japan. The region is prone to tropical cyclones, in most years, typically occurring during the months of November to April. This paper investigates the impact of tourism on economic growth and its contribution to employment in Fiji, Samoa, Tonga and Vanuatu. The paper also examines the impact of income (GDP) growth in visitor origin countries (Australia, New Zealand and the US), the inertial effect on travel destination choice, investment in travel and tourism and extreme weather conditions on tourism receipts in these countries using panel data analysis. In 2012, tourism's contribution to GDP ranged between an estimated 14.2% of GDP (Tonga) and 50.7% (Vanuatu). The contribution to employment ranged between 13.8% (Tonga) and 44.9% (Vanuatu) of total employment. Travel and Tourism investment ranged between 11.1% (Tonga) of total investment and 28.1% (Fiji). The variable for investment in travel and tourism was not significant which was not surprising. The variable for extreme weather was also not significant, suggesting that other factors mitigate the impact of the seasonal cyclones on tourist arrivals. The impact of Australian GDP was significant but negative, implying that Australian tourists preferred to travel elsewhere rather than to Pacific Island destinations when their income increased. The impact of all other variables tested on tourism receipts was significant and positive. The paper concludes with recommendations to improve the long term sustainability of tourism in this region.

Seasonal tropical cyclone activity and its significance for developmental activities in Vanuatu

“…Vanuatu is an archipelago of 83 islands with a population of approximately 260,000 people. The country is classified as a least developed nation with a predominance of subsistence agriculture as well as a heavy dependence on the tourism sector as mainstays of the economy [7]. In 2015, a category 5 cyclone struck Vanuatu causing severe destruction in four of its six provinces damaging both of its key industries, tourism and agriculture.…”

“…In 2015, a category 5 cyclone struck Vanuatu causing severe destruction in four of its six provinces damaging both of its key industries, tourism and agriculture. Australia, as a key development partner and as a provider of the [7]. The UN [2] has also continuously reiterated that SIDS must be treated as special cases for both environmental and developmental purposes.…”