Pacific Magazine > Magazine > October 1, 2005

Pacific Notes

Pacific Notes

October 2005


Samoa

Aggies Invests In Polynesian Blue
When the new Aggie Grey's Beach Resort and Spa Hotel near Faleolo International Airport opened in July it was to a full house, and with an innovative business model.

- ADVERTISEMENT -

Now the hotel's manager has revealed that the company has also bought a 2 percent stake in Polynesian Blue, the new airline that has taken over Polynesian Airlines' international routes.

"This hotel has really been a joint effort between Aggies Hotel and the government of Samoa," manager Fred Grey says. "We are fully committed to making it work, which is why Aggies Hotel has decided to be a shareholder in Polynesian Blue." The other shareholders are the government of Samoa and Pacific Blue.

Exterior view of the dining “fale” at the new Aggie Grey’s Resort. Photo: Olivier Koning

The 140-room resort took 18 months to build. The fact it opened fully booked, despite continuing work to complete the last 40 rooms, is an indication of its likely impact on Samoan tourism. Minister of Finance and Deputy Prime Minister Misa Telefoni said that government had decided to become involved with the private sector in getting the new resort off the ground to give tourism development a boost.

"We decided to follow the Bali example of government investing in one of the first hotels there, and then leave it to the private sector to develop the industry, once it got started. The move has obviously been a success in Bali. In our case, Warwick Hotels has since moved in and would have started construction of their exclusive five star hotel development on the south side of Upolu, but for the delay in finalizing the lease on the land," Misa says.

"The ground work on the Taumeasina Hotel project in Apia started some time ago, and a German investor holding the lease on the former Hideaway Hotel site on the south side of the island was granted an extension of the lease after depositing the required amount of money to show that he plans to use the lease soon."

Misa believes these developments will work hand in hand with the new international air services Polynesian Blue will start on Nov. 1. Polynesian Blue is the result of the merger between Samoa's flag carrier Polynesian Airlines and Brisbane-based Pacific Blue. The new services will start with three direct flights a week between Sydney and Apia and a minimum of four direct flights between Auckland and Apia.

The merger itself has caused considerable turbulence in Samoa with some 160 of Polynesian Airline's work force to be made redundant as Polynesian Airlines confines itself to operating within Samoa and American Samoa and possibly to Niue.

Air New Zealand, the second major airline serving Samoa is following the new developments very closely, according to general manager, Muliaga Ricky McFall.

"Air New Zealand can increase seat capacity any time provided the demand is there. The bottleneck has always been lack of suitable hotel accommodation, but once this changes, Air New Zealand can put in whatever air services are needed, including services by Freedom Air, Air New Zealand's budget fare airline."

Samoa's tourist numbers have been increasing steadily in the last several years, now standing at about 90,000 visitors annually, although the majority continue to be overseas Samoans visiting family or attending church or community events. A lack of hotel rooms has long been cited as a barrier to further growth. --Afamasaga Toleafoa

Guam

Abramoff Grand Jury Setback
A Los Angeles Times story on Aug. 8 claims that as a U.S. federal grand jury in Guam was looking into activities of controversial Washington lobbyist Jack Abramoff, acting U.S. Attorney Fred Black was replaced, essentially ending the investigation. Abramoff is the target of numerous probes primarily related to accusations that he cheated Indian tribes in the U.S. out of millions of dollars. It has been widely reported that in 2002 while the government of Guam was experiencing enormous financial problems, the Superior Court of Guam funneled at least $324,000 to Abramoff to head off federal legislation to make it subordinate to the Guam Supreme Court. The most recent Times story sparked calls for an investigation from Guam Congressional Delegate Madeleine Bordallo, Michigan Rep. John Conyers and the Citizens for Responsibility and Ethics in Washington, a national watchdog organization. The office of current Guam U.S. Attorney Leonardo Rapadas issued a statement denying that his appointment was related to the Abramoff matter. --Frank Whitman

CNMI

Indigenous Registration Begins
The Marianas Public Lands Authority (MPLA) has embarked on an historic project to register all indigenous residents of the Northern Marianas and create a master list for land ownership and other future benefits. The current population of the CNMI-including non-residents-is estimated at about 70,000 of which MPLA officials say a little over 20,000 are indigenous.

The commonwealth's constitution-Article 12, section four-describes a person of Northern Marianas descent as a person who is "a citizen or national of the United States and who is of at least one-quarter Northern Marianas Chamorro or Northern Marianas Carolinian blood or a combination thereof or an adopted child of a person of Northern Marianas descent if adopted while under the age of eighteen."

On Aug. 11, Gov. Juan N. Babauta proclaimed September as "Northern Marianas Descent Registry Month" at a special ceremony at Coral Ocean Point resort and golf course. The venue sits on public land being leased by a foreign company for commercial purposes. Public land leases are paid annually to MPLA, which turns the money over to Marianas Public Land Trust (MPLT) after deducting administrative costs. The money is then invested and the proceeds are set aside for "future generations" of indigenous residents.

The registry "will ultimately strengthen the people of NMI descent by protecting their assets, preserving their culture and tradition, and honoring their heritage," according to the proclamation.

Gov. Babauta says the list makes it easier for people applying for homesteads to receive public land. It will also enable the Election Commission to hold a list of people who can vote on issues involving Article 12 of the CNMI Constitution.

MPLA Board Chairperson Ana D. Castro says since the inception of the Commonwealth in 1978, the dreams of local people for a better future and prosperity "appear to be off course and uncertain. Today, many of our local people are having second thoughts and are actually asking whether entering into this relationship with the United States was appropriate and well worth the effort, and whether the contract is actually producing the benefit it was designed to accomplish." She says the mission of the registry will be to protect the limited land resources in the CNMI and unite indigenous people.

Castro says the agency will soon begin negotiations with businesses who are leasing public lands for discounts for indigenous people, similar to the "kama'aina" rates in Hawaii. The agency will support and lobby the Legislature to enact laws for scholarship or loan programs, retirement fund, and help for the disabled, the sick and needy.

More than 3,000 homestead applications are pending at the agency which issued a moratorium on the program in 2002. That was just lifted at the request of the governor. MPLA again is receiving homestead applications while working to identify public lands to give out to local residents.

Under the Covenant with the United States, which defines the relationship with the local government, only persons of Northern Marianas descent can own land. Non residents can lease public lands for businesses, which pay rent to MPLA.

That section of the Covenant and Article 12 in the CNMI constitution is controversial and has been tested in local and federal courts. Many are blaming the lack of foreign investment on Article 12. --Frank S. Rosario

Tonga

Strike Ends, But The Battle Continues
After 44 long days on strike, Tongan civil servants returned to work on Sept. 5, having won the salary increases they were after.

The strike began on July 22 when civil servants marched in Nuku'alofa after senior government officials were awarded pay raises of 57 percent. It was marred by violence, with vandalism of classrooms, the burning of one of the King's unoccupied homes, and arson attacks on government cars.

On signing a Memorandum of Understanding with government, the Public Servants Association (PSA) says, "the victory today sends strong signals to the government of Tonga regarding the rising concerns of the people. The six week strike has provided significant progress towards the need for political reform in Tonga. Though the strikers return today to work, the PSA will continue to pursue all peaceful and lawful moves towards a more democratic form of government."

The approved salary scale entails a 60 percent increase for levels 2-5, 70 percent increase for levels 6-10 and 80 percent increase for levels 11-14a.

The strike was distinguished by some new alliances. The newly formed Tongan National Business Association joined calls for a change in the political structure of the kingdom "because the current system doesn't help the economy."

But Minister of Finance Siosiua T.T 'Utoikamanu has expressed deep concern about the potential harmful impact of the salary adjustments. Before the agreement, 'Utoikamanu stated that salary increases "would cost T$36 million (US$18.4 million) each year. This amount will inflate the budget deficit by T$29 million (US$14.8 million), compelling the government to utilize its cash reserves of about T$7 million (US$3.58 million). The economic and financial implications of the proposal are very disturbing.

"According to the ministry's estimates, the negative impact of the proposed expenditure will increase inflation by 6 percentage points to 14 percent by the end of June 2006, compared to the current inflation rate of 8 percent … because each dollar of additional income results in higher demand for imported goods and services, in the absence of higher foreign exchange inflows, foreign reserves are projected to decline rapidly by about T$20 million (US$10.24 million) each year, thereby putting pressure on the exchange rate."

The Interim Public Servants Committee is also pushing for a fully democratically elected Parliament, and presented a petition to this effect to the King's representative on Sept. 5.

In an extraordinary sitting of the Tongan assembly, pro-democracy MP Akilisi Pohiva called for the government to step down because of its slowness in tackling democratic reforms.

The strike had a regional dimension. Negotiations between government and civil servants were facilitated by Dr. Sitiveni Halapua, director of the East-West Center's Pacific Islands Development Program, using the "Talanoa" process he has also used in post-coup Fiji.

Expatriate Tongans also played a high profile role in the proceedings. In New Zealand, there were demonstrations outside the King's official residence, prompting the Tongan Women's Action for Change organization to release a statement calling on the strike's leaders to "encourage peaceful methods in trying to reach a common ground. Violent demonstrations throughout the country and in New Zealand reflect and paint a very bad picture of the lack of good leadership skills amongst civil society."

A Web site, www.tongaonstrike.com, was an influential connection between strike supporters in Tonga and internationally, with its discussion board ranging from the issues at hand, to broader debates about the future of Tonga.
--Samantha Magick

Wallis and Futuna

Turmoil Continues, Airline Stalled
Supporters of King Lavelua Tomasi Kulimoetoke have written to the Pacific Islands Forum asking for a meeting to discuss problems in the French territory. Air Wallis Chief Executive and King's spokesman Marco Puluiuvea says the situation could get much worse on Wallis and Futuna as "people are starting to fight every day with each other down there."

Puluiuvea says they have also met with Fiji Foreign Minister Kaliopate Tavola and that he is seeking a meeting with UNESCO representatives.

Puluiuvea claims one of the underlying causes of conflict between the King and rival chiefs-which is now into its ninth month-is the proposed operation and benefits of Air Wallis.

"The airline is ready to start, and we have a five-year business plan. After that we plan to buy our own aircraft. We're interested in a partnership with Air Tahiti Nui initially …but we have to fix the political problems first," Puluiuvea says.

The troubles have elsewhere been attributed to a drink driving incident involving the Lavelua's grandson, and his initial unwillingness to surrender to police.

On Sept. 15 Oceania Flash reported the plans of rival group of high chiefs to install a new King late September. French Prefect and Special Administrator Xavier de Furst has officially granted recognition to an alternative chiefly council, which is "mostly made up of members of the other two feuding royal families of Futuna," according to Oceania Flash. This means there are two recognized chiefly cabinets in the territory.
--Samantha Magick/Oceania Flash

Marshall Islands

Hospital Pharmacy In Flames
Marshall Islands President Kessai Note declared a state of emergency in mid-September following a fire that destroyed the pharmacy, supply storerooms kitchen and laundry facilities of Majuro Hospital, the nation's major hospital. The hospital's emergency room reported no casualties as a result of the blaze, but a pharmacist reported that the only medicines left in the Marshall Islands' main medical center were the limited supplies in the pharmacy. Damage was estimated at $500,000.

A wing of Majuro Hospital collapsed during a fire that wiped out the majority of the medical facility’s medical supplies. Photo: Benjie Digno Jr.

Firemen were on the scene with a small fire truck within 10 minutes and reportedly did an efficient job as they waited for a larger fire truck, which carries a water cannon, to arrive from the airport, about seven miles away.

Eyewitnesses also praised the efficiency with which patients were evacuated. Many of them were moved to a temporary ward in the lobby of the nearby capital building, although at least one patient attached to an IV received ongoing treatment from nurses as she lay on a bed under the verandah of a nearby house.

Aid agencies and international diplomatic offices in Majuro assisted local government authorities in recovery efforts.
--Karen Earnshaw

Photo: Tahitipresse.pf

A luxury hotel and 78 homes were badly damaged when Bora Bora, French Polynesia experienced a 9.8 foot (3 meter) swell on the weekend of Sept. 10. The southern portion of Bora Bora involving Matira Point and the commune of Anau was the most severely hit as the swell caused the lagoon to overflow. The rising water flooded over-the-water bungalows and shoreline properties, and washed away parts of some beaches. Nearly all of the Intercontinental Hotel's 64 bungalows, pictured above, were damaged. --Tahitipresse

 

- ADVERTISEMENT -