REGION GETS US$ 1.6 BILLION FROM TOURISM

Tourism is worth an estimated US$1.52 billion to the South Pacific, according to research for SPTO (South Pacific Tourism Organisation).

The economic value of tourism for the region has grown by more than 60% since 2000.

Tourism accounts for more than 50% of GDP in some Pacific countries and often accounts for between 10 and 20 % of formal employment.

As the industry grows is benefits nearly every other part of a country's economy.

The study, 'The Economic Impact of Tourism in SPTO Member Countries', was conducted by the New Zealand Tourism Research Institute.

US$365 million was estimated to be spent by the industry on local wages and salaries in 2004. Another US$375 million was spent on buying materials and supplies from local economies, whether locally produced or imported.

Another US$274 million was spent on such other costs as financial services and insurance.

For every US$1 million of visitor expenditure in the region, US$660,000 was spent on local wages and salaries and purchases made from local economies.

The report says the industry clearly has great potential for generating further benefits for island economies.

For SPTO countries as a group departure tax rakes in well over US$20 million.

Government revenue from direct spending by tourists in SPTO member countries in 2004 was US$453 million. This figure includes departure tax and conservative estimates of corporate tax from tourism businesses. The figures do not include duties, tariffs and other tourism related taxes.

The report shows that tourism is clearly a major driver in most Pacific economies and a major source of direct revenue for most governments.

It shows that figures, in terms of the value of the industry, are understated due to lack of data. They do not include spending by cruise ship passengers or spending on airlines services.

The New Zealand institute estimates that the underestimate may be at least 20%, which would make tourism worth at least US$1.8 billion to the region.

While most Pacific Islands governments give tourism development priority, most donors do not have it as a high priority on their economic development aid agenda.

Clearly donors need to reconsider how tourism can be developed at a regional and at country levels with support from their own aid programmes, SPTO says.
The report can be obtained by SPTO country and private sector members.

A full page feature on the SPTO Internet site and regular details on regional tourism statistics and market intelligence updates are part of SPTO membership benefits.

SPTO membership is open to governments and commercial businesses. All private sector membership fees are use for marketing the region. SPTO private sector membership costs F$300 annually. Details can be obtained from the SPTO website www.spto.org.