Briefs
Business
Region
German researchers have concluded that kava is safe to drink. The drink—used in recent years by health-conscious westerners—was recently banned in many European nations because of fears that it causes liver damage. But a Germany-based pharmaceutical company, engaged by the European Union’s Center for Development of Enterprise, disputes the link between kava and liver disease, saying the drink has over 2,000 years of traditional use and is proved by 20 clinical trials involving more than 10,000 patients in Europe, the U.S. and elsewhere. “The severe hepatotoxic effects of kava claimed by drug regulation authorities cannot be regarded as proven,” the report said.
—GJ
Guam
Japan Airlines announced another reduction in flights to Guam to take effect during May. The airline cut its frequency from seven flights per week to three. The reduction is another sign of the declining travel in the region attributed to the war in Iraq and more recently concerns about severe acute respiratory syndrome.
—FW
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Glimpses Publications, publishers of Guam Business magazine announced the May 19 launch of the Marianas Business Journal. The new publication will be published every two weeks in tabloid format and printed in Saipan by Younis Art Studio, publishers of the Marianas Variety. Guam Business will be published quarterly.
—FW
Two Guam companies took advantage of depressed real estate prices recently. Tanota Partners purchased 100,000 square meters of land at Gun Beach, at the north end of Tumon Bay for $7.5 million. The land had sold for $63 million in the early 1990s. Tanota Partners was founded by businessman Alfred Ysrael and has extensive holdings including the 600-room Outrigger Guam Resort. The Julale Shopping Center in Hagatna was purchased by Colonial Investment Company Inc. for $1.4 million from Alte Guam Inc.
—FW
Northern Marianas
As a result of the war in Iraq, garment manufacturers in Saipan found themselves receiving cancellations for orders ready to be shipped. On April 7, the Saipan Garment Manufacturers Association reported that nearly 15 containers full of garments were at the Saipan docks awaiting loading when they were cancelled for shipment. In addition the association said they were concerned that buyers who had reserved space on the factory sewing lines for future orders would cancel or postpone the orders.
—FW
American Samoa
The House has rejected Senate bill that imposes a 20 percent import duty on white meat tuna off-loaded in Pago Pago by foreign vessels. A majority of the House members believe imposing such a tax would prevent foreign vessels from supplying the territory’s two tuna canneries and the end result would be devastating to American Samoa’s economy.
—FS
Palau
A recent trade and investment seminar held in Taipei, Taiwan was the first joint government/private sector effort to promote foreign investment into the Republic of Palau. Organized by the Palau Embassy in Taipei and attended by approximately 100 representatives of industry groups, trade organizations, businesses and corporations, the seminar provided potential investors with much needed information about possible business opportunities in Palau and provided Palau officials an understanding of investor needs.
—NC
Vanuatu
Visitor arrivals to Vanuatu for 2002 were down compared with the previous year. Arrivals by aircraft decreased by 6 percent, while visitors arriving by cruise ship fell by 5 percent. Because of the number of cruise ship visits it receives, Vanuatu is one of the few Pacific countries to list cruise visitors separately. Without the cruise traffic both statistics and economy would suffer considerably. P&O’s Australia based Sky Princess alone visits the country more than 30 times annually.
—ND
New Caledonia
The airstrip on Maré Island in New Caledonia’s Loyalty group has been shut down. The action was part of a protest by disgruntled landowners over a plan by the territory’s airline Air Calédonie to increase the price of tickets. The airline claims that heavy revenue losses over the last 12 months had brought it close to bankruptcy and forced the price increase.
—ND
Fiji
A U.S. conglomerate, Telesource International Inc. entered the local business sector after the Fiji Electricity Authority decided to outsource its power production. Telesource International told its shareholders mid-April about the 20-year multi-million dollar energy agreement. The deal involves Telesource Fiji Limited taking over three FEA facilities; current staffers at Labasa, Kinoya and Vuda are being offered work contracts by the new producer.
—MR
Emperor Gold Mine proved critics wrong about its longevity when the company announced a three-year expansion plan after securing $9 million from an overseas shareholders fund drive in the last nine months. The project is set to go with an additional $18 million loan secured with the ANZ Bank and the expertise of Johannesburg Stock Exchange-listed Durban Roodepart Deep (DRD), which purchased 13.7 percent of Emperor shares last December.
—MR
—Contributors: Giff Johnson, Frank Whitman, Fili Sagapolutele, Nancy Chism, Norman Douglas, Matelita Ragogo
