Business and Development

Yen enters N. Hebrides through an hotel door

From a Vila correspondent

The large Japanese retail and tourist chain, Tokyu, has moved into the French Pacific. The deal began when the Japanese purchased impor tant French tourist holdings in the New Hebrides, centring on the Vila hotels Vate and Le Lagon d’Erakor.

The transaction was arranged be tween Mr Shinichi Sakai, vice president of the Tokyu group, and Mr Pierre Hesnault of Vila. Mr Sakai has been nominated chairman of the companies controlling the two Hebridean hotels, which nevertheless remain subject to French law, while an American, Mr William T. Wright, is new hotel general manager.

In return for selling 90 per cent of his holdings to the Japanese, Mr Hesnault has gained the right for French interests he represents to be exclusive agents for the Tokyu group’s touristic, sea and air liaisons with New Hebrides, New Caledonia, French Polynesia and Fiji. Most im portant, the French side has gained representation of the Tokyu group in Europe, through a Paris forwarding agency.

In this trading of interests between Paris and Tokyo, anyone knowing Japanese and French methods of negotiating, with government backing, can’t help wondering how these trans actions will affect the New Hebri deans. No doubt the franc and the yen will speak out, leading Paris to seek Tokyo support for its policies in the Pacific, in exchange for economic concessions.

As an air link is scheduled to open between Tokyo and Noumea in November, 1974, the Japanese plan to finance extensions to the two Vila hotels, to prepare for an influx of

Nippon visitors. The Japanese will thus be lured to the French Pacific with the convenience of patronising Nippon financial interests. The ques tion is: how much revenue will really go to the islands?

As far as Japanese entry into the Caledonian tourist field is concerned, Tokyu are showing interest in the hotel project being canvassed by French interests, hopefully linked with Holiday Inns. The site is Brunnelet Point, opposite Noumea’s main yacht club.

In Tahiti, Mr Hesnault has launched the construction of a new 190-room hotel and a geriatric clinic of 72 beds. He has also recently bought up several travel and forward ing agencies, regrouped as Tahiti Voyages and Tahiti Transit. Through these channels he has arranged the air-freighting of Tahitian fruit and handicraft to Japan, to be retailed through Tokyu department stores.

From 1975 he plans to despatch 325 tons of goods annually this way.

Obviously, Paris and Tokyo are finding common interests, to their mutual advantage, in the South Pacific.

From left to right are three of the latest new placings in Burns Philp and Co —Mr R. M. Stobo, a director and formerly chief inspector, who becomes assistant general manager, administration; Mr C. T. A. Black, a director, who is now assistant general manager (South Sea division); and Mr Peter J. Ferris, who has joined the company in the new position of assistant general manager, planning and develop ment. Appointed funds manager for the Burns Philp group, but not in the line-up, is Mr C. L. Bungate.