Tony Wheelens

At the centre of heated discussions in Samoa's tourism industry about the impact of the new low-cost airline that began flying late October is Polynesian Blue, Australia-based Virgin Blue's new joint venture airline with the government of Samoa.

The two major stakeholders own 49% each and Aggie Grey's holds a minority 2% stake. The carrier will provide flights from Australia and New Zealand to Samoa.

Virgin Blue and its Pacific operation Pacific Blue, fly over 50 Boeing 737-700 and 737-800 aircraft with Pacific Blue flying between Australia, New Zealand, Fiji, Vanuatu and the Cook Islands.

Polynesian Blue, which has ended the Polynesian Airlines troubled chapter in Samoa's aviation history, will be the only airline offering a direct low cost service between Australia and Apia. It will initially operate three direct flights per week between Apia and Sydney. Polynesian Blue will also fly four direct services between Apia and Auckland each week.

The no-frills airline will have no business class. Meals, drinks and in-flight movies will have to be paid for.

Pacific Blue's Aviation Relations Manager, Tony Wheelens, who attended the tourism conference in Apia, said: “When we launched into Fiji, two things were predicted. The first was that tourism yields would fall. That has not eventuated. In fact, the Centre for Asia Pacific Aviation has reported that tourism yields in Fiji from Australia have risen by 2% last year and 7% from New Zealand.

“On the issue of hotel accommodation, I understand that in the next twelve months around 1000 new rooms will come on-line in Fiji. No doubt this is due to a number of factors. But the LCC's (low cost carriers) will have been an important stimulant. Samoa will need to look carefully at its infrastructure in the coming months.”

Based on the Fiji experience, Wheelens said it would be difficult to project growth on the Samoa sector.

“We anticipate that Samoa will have strong growth based on our experience elsewhere. This will come about because of our high quality, low cost model but also because the incumbent carriers will react to our presence. Air New Zealand is already reducing fares in Samoa and Tonga, even before we have entered the market.”

Offering a differentiated product line Samoa's tourism industry is taking product marketing seriously. It now offers a better-differentiated basket of products catering to different kinds of tourists. At the top end, it has upscale hotels and resorts like the recently inaugurated Aggie Grey's resort, near the international airport, with a state-of-the-art spa, excellent water sports facilities and a soon-to-be-ready golf course. At the other end of the spectrum, there is a range of options for backpackers and adventure tourists: from spartan, furniture-less and even wall-less fales with shared toilet facilities to self-contained units and motels. It is also putting together a new homestay scheme where tourists will be able to live with families in villages, getting a once-in-lifetime chance to imbibe Samoan life and custom. There are also opportunities for hiking and nature trailing in its verdant rainforests, as well as snorkelling and surfing off its secluded beaches.