Business Briefs
Business Briefs
Nov/Dec 2006
REGION
Caribbean-based mobile telecommunications provider Digicel’s rapid expansion into the Pacific market through its sister company Digicel Pacific Ltd. has seen the acquisition of licenses in Papua New Guinea and Samoa and provisional licenses in Fiji and the Solomon Islands in 2006. “At Digicel we have a strong track of entering new markets where communications needs are underserved and completely transforming the market,” says Digicel Pacific Ltd. chairman Denis O’Brien. Digicel recently acquired the naming rights for Fiji’s national rugby sevens team, the current IRB world champions. Digicel Pacific became majority shareholder for Samoa’s main mobile phone provider when it bought out Telecom New Zealand’s 90 percent share worth NZ$26.6 (US$17.5) million and hopes to complete a nationwide upgrade to a new GSM network there by March 2007. Digicel hopes for similar results in PNG with a population of 5.9 million people and mobile penetration at just 1 percent. — PR
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NORTHERN MARIANA ISLANDS
Visitor arrivals to the Northern Marianas for August show a little over 9 percent decrease as compared to the same period last year. But the Marianas Visitors Authority (MVA), reported that the 40,201 visitors were the highest for this fiscal year, as compared to 32,981 who arrived in April. MVA attributed the increase to the aggressive government and private sector promotions in Japan. As of the end of August, a total of 410,025 visitors arrived in the CNMI. MVA still expect the tourist arrivals to be 22 percent down compared to 2005. — FSR
Two local businesses, Tan Marikita’s Café and Tropical Color, both in Garapan, closed in September, the latest casualties of the Northern Marianas ailing economy. Tan Marikita’s Café, a subsidiary of Herman’s Bakery, closed after being in business for a little over two years. Tropical Color, which has been in business for more than 25 years, also closed citing huge decline in commercial transactions. Tropical Color was engaged in sale of cameras, films, film processing and photography. — FSR
GUAM
The Guam Bankers Association has announced its new officers for the coming year. The association’s new president is Ed Untalan, vice president of First Hawaiian Bank; vice president is Nette Camacho, senior vice president of Bank of Hawaii; secretary is Erwin Perez, vice president with Citibank; and elected treasurer was Joseph Bradley, Bank of Guam vice president. Untalan succeeds Larry Butterfield, president and chief executive officer of who had been the association president for three terms. Citizens Security Bank. — FW
The number of tourists arriving in Guam climbed slightly during the first eight months of 2006 as compared with the previous year, according to figures from the Guam Visitors Bureau. Arrivals through August 2006 totaled 833,366 versus 831,485 for 2005. While the number of air arrivals rose by 2 percent, sea arrivals—primarily those on liberty from military ships—was nearly halved, from 35,895 to 19,181. — FW
A September 12 letter from American Honda Motor Co. announced that Triple J Motors will serve as the Honda and Acura sales and service representative in Guam once the new Honda showroom is completed during November. Triple J already sells Mazda, Ford, Mitsubishi, Suzuki, Volvo and Kia automobiles out of its recently completed $13 million showroom about a mile from the soon-to-be Honda location. Hondas and Acuras had been sold for years by Mark’s Motor Co., a division of MV Pangilinan Enterprises. — FW
PALAU
Palau was hit with rolling blackouts when engines in its two power plants broke down in August, requiring an emergency purchase of new generators. The rolling power outages—which lasted for about one month—hit some businesses hard, particularly those without backup generators. New generators, at a reported cost of more than $7 million, were imported in mid-September, allowing for a resumption of 24-hour power in October. — GJ
In the first eight months of 2006, 56,769 visitors came to Palau, according to the Palau Visitors Authority. If the trend continues for the rest of the year, this will result in a slight increase over 2005, when 80,578 people visited. — GJ
MARSHALL ISLANDS
Following the unannounced refueling visit to Majuro by the Navy destroyer USS Momsen in early September, it appears that Majuro may see more frequent Navy ship visits. The U.S. Embassy reported that the 24-hour visit resulted in an injection of $750,000 to the local economy through fuel and food purchases, and the crew’s use of local bars and restaurants. Navy officials visited Majuro in September to investigate its port, hotels and other facilities for visiting vessels and sailors, while Majuro tourism and business officials traveled to Guam repeatedly in the September-October period to meet with Navy and other military officials to encourage visits to Majuro. Meanwhile, in early October a smaller Navy search and rescue vessel called in Majuro for a four-day port visit. — GJ
A recent Marshall Islands Auditor General’s office report to Parliament quantifies just how hard-hit the Marshalls Energy Company was by skyrocketing world fuel prices in fiscal years 2004 and 2005. The government electric utility’s string of profitable years ended in 2003. In 2004, it had an operating loss of nearly $1.4 million. Last year the losses more than doubled to over $3.2 million. “Total expenses increased by a massive $5,229,801 or 24 percent from $21,504,315 in 2004 to $26,734,116 in 2005,” the audit said. As a percentage of total power plant operating costs, fuel jumped from 60 percent in 2002 to 77 percent last year. In late August, the utility company began aggressively disconnecting customers with unpaid debt. This resulted in a much-needed cash infusion for the company. — GJ
For the first time, Majuro has a functioning local market that was launched in early September by Bank of Marshall Islands and Robert Reimers Enterprises, with support from a new Taiwan-funded micro loan program. Local farmers and fishermen are finding that their fresh vegetables and fish are scooped up in minutes by cash-paying residents. At the market’s opening, Bank of Marshall Islands board chairman Grant Labaun said the Taiwan program was opening opportunities to local business people. Besides fresh vegetables and fish, vendors are selling smoked fish, noni soap, coconut oil, pandanus juice, and a variety of other local food and food products. — GJ
PAPUA NEW GUINEA
The rapid increase in the trade of counterfeit products in Papua New Guinea is being exacerbated by the lack of intellectual property enforcement mechanisms. Intellectual Property Office of PNG registrar Gai Araga said this problem was compounded by his office’s lack of policing powers despite the combined efforts of the PNG customs bureau and the police transnational crime unit to crack down on piracy. While acknowledging that his office lacked capacity and resources to tackle piracy, Araga said the shortcoming could be tackled through inter-agency collaboration and exchange of intelligence. — AR
Papua New Guinea-based Bank South Pacific has recorded an operating profit of K76.27 million (US$24 million) for the half year, a 13.36 percent increase on the consolidated operating profit of K67.28 million (US$21.2 million) achieved for the same period last year. The bank, which has a branch in Niue and is currently looking at expanding into the Solomon Islands, has declared an after-tax profit of K52.15 million (US$16.4 million). Noreo Beangke, chairman of the bank’s board of directors, said strong growth within the bank has pushed up the value of its assets to K3.63 billion (US$114.16 million). — AR
Contributors: Peter Rees, Frank S. Rosario, Frank Whitman, Giff Johnson and Alex Rheeney.
