Briefs
Business
Samoa
Shell Oil won the contract to be Samoa’s national fuel supplier, beating out incumbent Mobil Oil in a competitive bid process. The contract is to be awarded early in the year and logistical arrangements made for transition from Mobil to Shell at the government’s bulk fuel storage farm at Sogi.
—FS
Westpac Bank Samoa is upgrading its computer systems to introduce automatic teller machines. Rival ANZ Bank and the National Bank established ATMs earlier in 2002. Westpac’s older computer system was not adequate to establish ATMs that could provide customers with 24-hour access to their funds.
—FS
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Revenue generated by tourism in Samoa has reached SA$130 million, putting it ahead of remittances as the biggest source of foreign exchange for the nation. Tourism Minister Hans Joachim Keil made the announcement as part of a name change for the Samoa Visitors Bureau, which is now the Samoa Tourism Authority.
—FS
The outlook for business in Guam continues to be gloomy, particularly following Supertyphoon Pongsona. It’s reported that in a 2002 United States nationwide survey, Guam had the highest percentage of bankruptcy filings in the U.S.
—GJ
In the wake of a hotbed of Christmas season controversy over Far Eastern Air Transport’s bid for additional flights for the route from Taiwan to Palau, tourism is booming. Discord and concern flared among and between various government, airline and business agencies that included a reversal in the government’s decision to disallow the flights, a lawsuit and its subsequent settlement, and an airfare war that reduced costs significantly and encouraged Taiwanese travel. Despite the turmoil, tourists are presently arriving in greater numbers from all the usual embarkation points, especially from Taiwan, where visitor numbers have tripled since 2001. President Remengesau stated that tense December meetings have had the gratifying affect of bringing government agencies, airline and tourism businesses to an enhanced understanding of the issues involving tourism in Palau.
—NC
American Family Life Assurance Company recently closed its office in Palau while investigating complaints about claims payments and excessive losses by the company. As a result, no policies are being sold in Palau and holders of existing policies are required to mail premiums to the main company office in Georgia. Many of the policy-holders are government employees whose premiums were paid through payroll deductions. The government is requesting that Aflac either open a local bank account or hire a temporary agent to make paying premiums locally an option.
—NC
German aircraft manufacturer Dornier Fairchild lost a $4.2 million appeal in the Marshall Islands Supreme Court in late December. In a unanimous decision issued by the three American judges, an earlier High Court default judgment against Dornier was upheld. The dispute centered on two down-payments totaling $2.1 million that Air Marshall Islands made to Dornier for the purchase of two Dornier 328 aircraft in 1999. The purchase was subsequently halted by Air Marshall Islands, but Dornier refused to refund the down-payment. Dornier filed for bankruptcy in Germany in April 2002.
—GJ
The Bank of the FSM closed its Saipan office on January 31 as a result of the continuing poor economic situation there and the inability of the branch to meet financial performance goals, the bank said. Bank of FSM opened in Saipan as a loan office in the late 1990s. “We are saddened with the decision to close the Saipan office,” says Bank of FSM President Bud Wood. “But given the uncertain outlook of Saipan’s economy and our commitment to provide maximum return for our shareholders, Bank of FSM’s board of directors determined this course of action was in the best interest of the bank.”
—GJ
The FSM’s only dry-dock operation, Semo Micronesia in Kosrae, recently signed an agreement with the Pohnpei-based Micronesian Longline Fishing Co. to repair their fleet of 10 fishing vessels. Two were completed at the end of 2002, with the remainder to be refurbished in 2003.
—OW
The FSM’s only black lip pearl oyster farm, on Nukuoro Atoll in Pohnpei, is expanding in size, following its second small pearl harvest in late 2002. About 2,900 pearls were harvested, but the good news is that 880 oysters were reseeded and 4,500 new oysters were seeded, with the next harvest scheduled for early 2004. Pohnpei’s Kaselehlie Press reported that the pearl farm “has thousands more oysters ready to seed but is hampered in its expansion efforts by a shortage of funding.”
—GJ
After months of delays Air Kiribati’s ATR72-200 launched an inaugural flight to Nauru, Tuvalu, Suva, Nadi, and the Marshall Islands just before Christmas. The 66-seat, twin engine propeller plane is flying Tarawa-Funafuti-Suva on Sundays with the return on Mondays, and Tarawa-Majuro-Tarawa-Funafuti-Nadi on Wednesdays, with the return on Fridays. Because of an exclusive service agreement with Fiji Air, Air Kiribati is apparently not able to carry passengers between Fiji and Tuvalu. The inaugural flight included a lively dance troupe from Kiribati that performed at all the destinations.
—GJ
United States authorities have frozen about $14 million of the assets of the Vanuatu-based European Bank, against vigorous protests from bank officials. The Federal Bureau of Investigation, is alleging the bank is involved in a huge fraud concerning mail orders of international lottery tickets. Thomas Bayer, executive chairman of the European Bank, at press-time was said to be under threat of arrest if he leaves Vanuatu. Bayer, a well-known and experienced figure in Vanuatu’s offshore investment sector, says the bank is unaware of any misrepresentation.
—ND
A locally owned and operated tourism business, Island Safari, gained international recognition by winning an eco-tourism award. The award, made by Skal International in its Beaches, Coasts and Islands category, placed the Vanuatu soft-adventure enterprise ahead of 40 other organizations worldwide. The award was announced at Skal’s 63rd World Congress in the Australian city of Cairns. Skal International, which aims at promoting goodwill and understanding through travel, comprises 22,500 travel industry professionals globally. Island Safari’s offerings include rain forest walks, volcano climbing, village-style fishing and lessons in island myths and legends from custom leaders.
—ND
Visiting New Caledonia’s Northern Province, where the majority of the population is Melanesian, French Minister for Overseas Territories Brigitte Girardin told local people that the development of nickel was essential to the region’s economic well-being. Concerns had been raised recently over the effect of such a vast project on the environment. However, speaking on employment and other economic matters with officials in the provincial capital Kone, Girardin sought to allay concerns. A joint venture with the Canadian company Falconbridge for the construction of a huge nickel smelter at Koniambo, is planned. Production is targeted to reach 54,000 tons annually.
—ND
Cook Islands, long dependent on tourism as a major source of revenue, is now seriously considering ways of lessening the impact of the visitor business. The new concerns have surfaced because the growth of tourism shows signs of outrunning the plans made for it. The country’s 1990 Tourism Master Plan was of the view that 3,000 visitor beds would be “economically unviable, socially unacceptable and environmentally unsustainable.” As tourism development has a way of behaving in defiance of plans, that precarious limit has almost been reached, with the vast majority of the beds in two islands, Rarotonga and Aitutaki. To find solutions to the problems of runaway development, the Cook Islands Tourism Corporation held a two-day forum in December at which a number of industry figures discussed recommendations for reaching new guidelines on sustainability and viability. These included limits on visitor numbers, strategic plans for the outer, rarely visited islands, and consistency in matters relating to building and health regulations as well as tipping and media liaison. Task forces will look into these matters and deliver their reports by the end of March 2003.
—ND
The Saipan Chamber of Commerce presented its Economic Stimulus Package to Gov. Juan N. Babauta, Lt. Gov. Paul A. Manglona and Sen. Pete Reyes at the Aqua Resort on December 18. The package represents the Chamber’s “attempt to entwine public and private leadership toward the mutually beneficial goal of a more productive and sustaining local economy.” The plan identified 10 areas of focus: finance and banking, privatization, land issues, zoning laws, tourism, the garment industry, environmental issues, investment, labor issues and government operations. Suggested actions and policies were offered in each area. The package was formulated by the chamber’s board of directors, Government Relations Committee and general membership “as a way to reach all those affected by the instability of the current economic atmosphere in the Commonwealth of the Northern Marianas.”
—FW
Contributors: Fili Sagapolutele, Giff Johnson, Nancy Chism, Olivier Wortel, Norman Douglas, Frank Whitman
