Briefs
Business
The Region
At the Pacific Asia Travel Association meeting held in mid-April in Bali, Indonesia, President Mega-wati Soekarnoputri told delegates that the Bali bombing has certainly damaged her country’s tourism sector, but she also expressed irritation at the travel warnings issued by unnamed governments, which she said were more indicative of “phobia” than of valid security concerns. The governments of Australia, the U.S. and Great Britain have issued such warnings.
But more on PATA delegates minds was the damage to Pacific tourism and business travel caused by Severe Acute Respiratory Syndrome. The Asia-Pacific region is seen as the center of the outbreak that has claimed almost 200 lives worldwide. The Iraq war, combined with the SARS scare, has caused Indonesia to lower its projected tourism sector revenue to $3.2 billion. Prior to the Bali bombing and SARS, the country could count on revenues up to $5.7 billion per year from tourism.
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In other SARS news, Samoa’s national rugby team, which had just played in the April Hong Kong Sevens’ rugby tournament, underwent a full check-up for signs of SARS during a stop-over in New Zealand on their way home. Samoa’s Health Department also wanted the Manu Samoa Sevens players and fans who were in Hong Kong to be isolated for six days, upon arrival home, as plans went into force to prepare the country for an outbreak of SARS.
Communicable Disease Control Committee deputy chairman Dr. Stanley Dean said on state-run television that all the players would be checked by a doctor in New Zealand before returning to Apia. Dean cautioned that no celebrations should be held when the team arrived and that the players should be “isolated” at home for six days, “so they don’t mix with the public and to see if they develop symptoms,” Dean added.
In Fiji, all fans who went to watch the sevens at Hong Kong were told to confine themselves to their families for 10 days. New Zealand recorded its first SARS case on April 12. SARS may end up being more damaging to Pacific tourism than either the Bali bombings or the Iraq war.
—FS and SW
PalauThe Palau Embassy in Washington D.C. is investigating the alleged abuse of labor rights against 14 Palauan women by Senior Residential Care of America in Milwaukee, Wisconsin. The women had signed three year contracts to work for $7 an hour and receive nursing training. In fact, reports say they found themselves working in nursing homes with no training and having to pay back airfare and a recruitment fee totaling $2,250—at 8 percent interest. The fee was taken from their paychecks along with other living expenses, which left them almost nothing.
—NC
On April 1, phone rates in Palau were reduced by the largest amount ever. Rates to mainland U.S. and nearly 200 other destinations were cut to 99 cents per minute. Rates to the mainland were previously $1.50 per minute. Rates to more expensive destinations were reduced up to 80 percent. Palau National Communications Corporation said the reductions were made possible by a negotiation of payments to communications firms like AT&T. Palau’s President Tommy E. Remengesau, Jr. continues to lobby the Federal Communications Commission for entry of Palau into the National Exchange Carrier Association which could reduce rates to the mainland to as little as 15 cents per minute.
—NC
GuamGuam’s ailing tourism industry continues to be challenged by decreasing airline capacity into the island. Asiana Airlines discontinued flights between Guam and Korea on March 30, despite significant market growth in the Korean market during the last two years. The Asiana pullout cuts airplane seats on the route by about 40 percent. Korean Airlines, which resumed service to Guam in December 2001, will continue its Seoul-Guam flights, but has halted flights into Saipan. Asiana will continue flying the Saipan route. Japan Airlines temporarily reduced Guam-Narita flights from 14 to seven flights per week during most of April. The airline also is combining its separate daily flights between Osaka and Guam and Osaka and Saipan into a single Osaka-Guam-Saipan-Osaka flight. The moves came as JAL lowered its projected passenger load to Guam for April by more than half. In addition, Continental Micronesia is reducing its Osaka to Guam flight frequency from seven to four weekly flights. “We are monitoring the demand constantly,” said Walter Dias, vice president for sales and promotions. “It’s like we’re caught in a perfect storm. First we had the Japanese economy, then Typhoon Pongsona, then the North Korea situation and now the war in Iraq.” About 80 percent of Guam’s tourists are from Japan.
—FW
A groundbreaking ceremony was held on March 12 for a renovation of the Agana Shopping Center, first opened in 1978. The project represents a $10 million investment by owner Henry Sy, chairman of the Shoemart Group of the Philippines. The largest retail space in the shopping center has been vacant since the closing of Town House department store in August 2001.
—FW
FSMKosrae Nautilus Resort recently brought in National Association of Underwater Instructors, Ron Menke to train one of its employees to be a dive instructor. According to Geoff Raaschou, owner of the resort, the Nautilus now has the only certified indigenous dive instructor within the FSM—Aminis Seymour. The move not only gives Nautilus an edge in the local dive industry, but it will also allow courses to be taught in the Kosraean language up to the level of Dive Master. “The more important part about it is that Aminis can teach the school kids about the underwater environment, about what’s going on in the reef in Kosraean,” says Raaschou. Menke, who owns Kissimmee Professional Dive Center near Orlando, Florida, hosts regular dive tours throughout the Pacific region each year.
—OW
Papua New GuineaSir Moi Avei, Minister for Petroleum and Energy, expressed his optimism that a huge PNG gas project now in the works will bring about a massive restoration of confidence in investment in his country. After a meeting with senior executives from ExxonMobil and other representatives from Australia, he said he was confident that the project would commence in late 2003. When started, says Sir Moi, the project “will prompt and spur many spin-off business activities which will bolster our bruised economy. It is in every person’s interest for the PNG gas project to get going.”
—ND
Hundreds of people from Lae in PNG have fallen for a widespread scam that promised huge returns following their payment of 55 kina for a receipt. The receipts or promissory notes allegedly guaranteed payment to their owners of sums of money from PNG Forest Products, a Bulolo-based company. Claiming to be agents of the company, the con men involved told unwary Lae citizens that the families of World War II carriers and laborers from the period of the gold rush in Bulolo were to be compensated by the company for their forebears’ contribution to the success of these activities. PNG Forest Products has denounced the trickery and denied owing money to anyone.
—ND
French PolynesiaOfficials of Tahiti Tourisme and Air Tahiti Nui have been to Osaka and Tokyo for meetings with travel agents in an attempt to halt a decline in Japanese visitors to the territory. The war in Iraq, together with the economic crisis in Japan, has resulted in a disturbing drop in numbers of visitors to Tahiti during the first weeks of 2003. However, Air Tahiti chief Nelson Lévy said that the fall-off is apparently the same for all destinations. Speaking to some 100 travel agents selling Tahiti as a destination, Lévy reminded his audience of Air Tahiti Nui’s growth in the Japanese market. “This market is very important for the development of tourism in French Polynesia,” he said.
—ND
Corsair, the French airline, has ended an association of over 10 years with the territory, and has made its last flight from Paris to Papeete. An announcement of the termination was made in August 2002. Corsair flew about 70,000 passengers to Papeete each year, with an average 80 percent capacity. The last arrival brought an emotional response from airline employees at Tahiti’s Faaa International Airport. Meanwhile, Air Tahiti Nui has announced its intention to add a sixth weekly Papeete-Paris flight between June 30and August 27.
—ND
NauruLegislation has been passed in parliament abolishing Nauru’s controversial offshore banks. Provisions were made for most existing licenses to expire in 30 days. Included in this are Russian-owned banks said to have laundered billions of dollars in the past decade. However, offshore banks owned by American, Australian, New Zealand and European Union member interests will be given six months to close down. The new banking legislation was promised, in response to international criticism, by late president Bernard Dowiyogo before his recent death.
—ND
Cook IslandsIn an attempt to lift the country’s pearl industry, at present battling with a number of problems including depressed international markets, the duty on imported pearls and pearl jewelry is to be increased to 100 percent. Duty on loose imported pearls will be raised by 82.5 percent, and on imported natural or cultured pearl jewelry by 85 percent. The announcement was made by Prime Minister Dr. Robert Woonton, who also suggested the revival of the Cook Islands Pearl Authority. Deputy PM Dr Terepai Maoate recently met with pearl farmers on the important pearl farming islands of Manihiki and Penrhyn.
—ND
—Contributors: Fili Sagapolutele, Scott Whitney, Nancy Chism, Frank Whitman, Olivier Wortel, Norman Douglas.
