Business Briefs
Business Briefs
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Samoa
International hotel chain Warwick Hotels has signed a lease agreement with the owners of picturesque Vavau Beach on the south side of Upolu Island. The traditional landowners stand to receive an initial down payment of US$200,000 when construction begins with annual rental payments of US$40,000 annually. -- AT
The Samoa Electricity Power Corporation (EPC) is setting up a wind resource assessment project as a first step toward harnessing wind power for electricity generation. The project is a partnership with the Wind Energy Department of Risoe National Laboratory of Denmark, the South Pacific Applied Geoscience Commission (SOPAC), and the United Nations Development Program. The project will involve construction of a 40-meter wind-monitoring tower on Upolu, and follows on experimental work with coconut oil as a substitute for diesel in generating energy. -- AT
American Samoa
American Samoans may soon benefit from new taro varieties being offered by American Samoa Community College. Dr. Fred Brooks of the ASCC land grant program said the new taro evaluation program is modeled after the successful Taro Improvement Project at the University of the South Pacific in Samoa. "Unlike breeding programs where the government decides which taro varieties to release, selected American Samoan farmers will grow these new taro varieties and, together with their families and friends, decide which taro they prefer," he said. -- FS
Guam
The total number of jobs in Guam's private sector increased by 1.5 percent during the 12-month period ending in September, according to the employment report released by the Guam Department of Labor in November. The number of people employed by the government of Guam increased by 10 to 11,370, while the number of federal jobs in Guam dropped by 50 to 3,270 during the same period. Private sector jobs totaled 43,300 according to the report. The jobs number is considered another positive economic indicator for Guam along with increased visitor arrivals, rising real estate values and a buildup on the island's military bases. -- FW
CNMI
Visitor arrivals for October show an 11.55 percent decrease as compared to last year and an overall decrease for the fiscal year of 2.5 percent, according to statistics provided by the Marianas Visitors Authority (MVA). Japan alone, the largest source of tourists to the Northern Marianas, showed a 21 percent decrease, which MVA attributed to the pullout of Japan Airlines effective October 5. The October arrivals totaled 35,418 for a grand total of 433,418 for the entire fiscal year. Last fiscal year, 535,873 tourists visited the Northern Marianas. Korea, however, posted a 70 percent increase for the month, which was made possible by Asiana Airlines using a bigger aircraft, a Boeing-777 which has 315 seats. -- FSR
The Hotel Association of the Northern Mariana Islands (HANMI) celebrated its 20th anniversary of operations. The non-profit group was formed in 1985 to represent the hospitality industry in the CNMI. The association, comprising of all the major hotels in the Northern Marianas, manages more than 2,500 hotel rooms. According to HANMI chairwoman Lynn A. Knight, the hotel association today accounts for nearly 7,000 jobs and more than $733 million circulating annually in the local economy. -- FSR
Marshall Islands
The Marshall Islands ship registry is now the fifth largest open registry in the world, having exceeded 30 million gross tons. The registry now has 30.8 million gross tons and 1,063 registered vessels. The country's ship and corporate registries are managed by International Registries, Inc. (IRI). IRI recently opened International Registries (Far East) Limited Japan branch office as part of an ongoing expansion in Asia. --GJ
A survey of 'mom and pop' takeout stores in the downtown area of Majuro shows the increasing dominance of Chinese in the local business community. The survey published by the Marshall Islands Journal showed that more than 40 percent are now owned by or run in partnership with people originally from the People's Republic of China. Of 76 takeout stores surveyed, slightly over half, or 43 (56.5 percent), are owned by Marshallese, 31 (41 percent) are owned or run by Chinese and two (accounting for the final 2.5 percent) are owned by Filipinos. None of these small stores are owned or operated by Chinese from Taiwan; Taiwanese own the larger retail outlets, such as Formosa, which bought the Robert Reimers Enterprises main store late last year. -- GJ
Palau
Former Palau Public Utilities Commission (PPUC) general manager Dallas Peavey and chief financial officer Peter Candela have had 15 criminal charges filed against them. These include grand larceny, forgery and money laundering. Both pleaded not guilty. An affidavit filed by government prosecutors says that several checks were illegally written to both men for cash totaling over $10,000 and for airline tickets out of Palau. -- BP
Palau Plantation Resort, located in Koror, opened its doors recently. The resort, owned by environmentally conscientious Donald Haruo, blends in with the natural environment creating a true sense of local style for its guests. No heavy machinery was used during construction of the resort in an effort leave the surrounding environment as undisturbed as possible. -- BP
Papua New Guinea
The government has set aside K400 million (US$124.6 million) to fund its equity share in the PNG Gas Project. A government nominee will acquire a 22.5 percent corresponding interest in the Hides gas field and subject to financing considerations will acquire 15 to 30 percent equity in the gas project infrastructure located within PNG. The project's participants are ExxonMobil, Oil Search, Mineral Resources Development Corporation (representing PNG landowners) and Nippon Oil Exploration. The multi-million-dollar project involves transporting gas via a 3,000 km (1,864 mile) pipeline to Australia. -- AR
World mining giant Rio Tinto Group has sold its 14.5 percent stake in Papua New Guinea's Lihir Gold Ltd. for $A399 million ($US124 million). Rio sold its stake in Lihir for $A2.15 (US$1.62) a share to Citigroup Inc. in a move to tap bullion prices near their highest in more than 20 years. Rio chief executive Leigh Clifford said in a statement they took advantage of current favorable market conditions to sell their holdings. -- AR
Fiji
Shangri-la Fijian Resort has completed the first phase of its F$40 million (US$23.4 million) renovations, says general manager David Hopcroft. The hotel was also rated in the Top 10 Family Friendly Resorts competition by Australia's leading family travel lifestyle magazine Holiday with Kids. It was the only resort in Fiji or the South Pacific to be featured in the 2005 Top 10. -- RM
Blue Lagoon Cruises has become the only luxury cruise ship operator to be awarded the prestigious "Recommended Property" status in the 2006 edition of the Condé Nast Johansens Luxury Hotels Guide. Only 285 hotels, resorts and spas worldwide were rated by the influential hotel guide in the latest edition. -- RM
The South Pacific Stock Exchange achieved a milestone in November when the total market capitalization of the 16 listed companies hit F$1 billion (US$585 million). Chief executive officer Sanjay Sharma attributed the achievement to investor confidence in Fiji and the region, education campaigns by the exchange, new listings and high demand for shares. -- RM
Emperor Mines Limited, owner of the Vatukoula Gold Mine, announced in mid-November it intended to buy two gold projects in Papua New Guinea, making Emperor one of the South Pacific's biggest gold mining companies. Shareholders will need to approve the purchase of a 20 percent share in Porgera and 100 percent of the Tolukuma Gold Mines. But the troubled company's woes continued with the death of a miner underground-the second in seven months-which renewed concerns about the mine's safety and prompted a visit to the scene by the minister responsible, Samisoni Tikoinasau. EGM was also hit with a F$48,000 (US$28,000) compensation payout ordered the same month by the Court of Appeal to a contract worker who was injured in 1999. And an attempt was foiled to blow up a building in early December, allegedly by disgruntled workers. The company had sacked 38 staff in September for high levels of absenteeism. -- RM
Cook Islands
The Cook Island's close association with the People's Republic of China continues with a group of Chinese businesspeople visiting to look at taking a stake in the fishing industry. While their visit has been met with some reservations, fisheries Minister Wilkie Rasmussen has gone out of his way to take the Chinese to his constituency in Penrhyn, a northern group island known for its migratory fish stock. -- UKM
The second 24-hour petrol station has opened in Rarotonga and is the first ever business venture for the owners, Rose and Taoro Strickland. After four years of planning, the young couple is finally seeing their dream come true. The other petrol station is located directly on the other side of the island that takes less than 30 minutes to drive around. The two one-stop shops are the only shops serving the island throughout the night. -- UKM
Nauru
Australian fertilizer company Incitec Pivot Ltd. is to work with a new company set up by the Nauruan government to operate the island's phosphate rock operations, according to Australian newspapers. Incitec says it will invest $4.41 million to refurbish the island's phosphate rock mining and processing plant. Incitec chief executive Julian Segal told AAP the rock would be used to manufacture fertilizer at Incitec Pivot's Australian plants. -- SM
Contributors: Afamasaga Toleafoa, Fili Sagapolutele, Frank Whitman, Frank S. Rosario, Giff Johnson, Blaire Phillips, Alex Rheeney, Ricardo Morris, Ulamila Kurai-Marrie and Samantha Magick.
