Vanuatu's hopes - and

trade winds

Vanuatu's hopes - and money-ride on tourism

To the government and people of Vanuatu, a billion vatu sounds like a lot of money.

That’s how much the Tokyu Corporation of Japan plans to spend on upgrading and ex panding its Le Lagon resorts on the outskirts of Port-Vila, the nation’s capital.

At about US$l3 million, it represents the largest single foreign investment in Vanuatu since independence in 1980, and a clear sign of confidence in the country’s tourism industry.

And it comes at a time when the numer of visitor arrivals has fallen another 30 per cent in 12 months, and there is a tighter squeeze on the shrinking tourist vatu.

Pan Pacific Hotels - the trade banner of Tokyu’s hotels division are not alone in their confidence, following the open ing in January of the 80-room Iririki Island Resort in Port-Vila harbor.

Built at a cost of US$3.4 million, Iririki is 60 per cent owned by Kumagai Gumi, the massive Japanese construction company, and 40 per cent by Mr and Mrs Peter Nicholson, an Australian couple.

Both Nicholson and Le Lagon’s general manager, Taka lio, told PIM recently that they expected tourism in Vanuatu to pick up over the next three years.

But their optimism is not shared by many of the smaller hotel operators, restaurateurs and shopkeepers involved in the tourist trade.

Hit by sharply declining num bers of holiday visitors - there were only 26,000 in 1985

and increased fees charged by the government, their enthu siasm is running thin.

“They know something we don’t,” said one operator who did not want to be named.

Taka lio, of Le Lagon, believes Vanuatu certainly has a strong future as a tourist destination.

“I see a number of difficult years ahead, he said. “How-

ever, with a better creative marketing strategy I believe it will happen eventually - it’s just a matter of when, and we feel it is in the very near future.”

Tokyu’s plans for re-deve-

The site of Tokyu Corporation’s one billion vatu ($US13 million) development at Le Lagon resort near Port Vila. Top: Vanuatu’s newest resort hotel, the 80-room Iririki Island Resort on the island off Port-Vila that was once the site of the British Residency.

loping Le Lagon, for many years Vanuatu’s premier resort, include the building of a new centre “core” of reception and main lobby, and 26 rooms on the golf course hill behind the hotel.

A second phase to May, 1988, involves the construction of a new swimming pool, dining room, restaurant and entertain ment area.

When completed, the new resort will have 200 rooms, a new golf course and in the words of Taka lio, will be “a five-star hotel.” Work on the project is due to start in May.

The redevelopment of Le Lagon is part of Tokyu’s plans for expansion in the South Pacific, he said.

The group has three major hotels in the region already: the Hawaiian Regent, the Mauna Lani Bay Hotel, and the Palau Pan Pacific in Micronesia. lio told PIM that Tokyu was interested in the Grand Pacific Hotel in Suva, and had “aggressive plans” for Sydney and Melbourne.

“Pan Pacific plan to have 25 hotels in 10 years,” he said.

The group currently has nine, and three under construction.

Tokyu recently bought Mago Island in Fiji for a reported Fs6 million, but Taka lio would not comment on the corporation’s plans for that remote island.

The Fiji Times late last year quoted sources saying that Tokyu’s president, Mr Noboru Gotoh, has plans to use the island as a personal holiday retreat and to develop it as an international flower garden.

In an interview with PIM in 1985 he spoke of his admira tion for the unspoiled beauties of Pacific islands and said his

amibition was to own one.

The key to Vanuatu’s tourist fortunes though, Mr lio said, was the improvement of the Bauerfield international airport of Port-Vila.

“Once the airport is up graded we have better accessibility. We would like to be ready for that.”

The project, due to start in June and funded to the tune of As 3 million by the Australian Development Assistance Bureau (ADAB), will include rebuilding the centre portion of the airstrip and treating the whole runway.

This will allow Boeing 727 jets to land at Bauerfield. A second phase is planned to

extend the runway for 7675.

There has also been talk of building another larger airport at White Sands to the southeast of Vila, to cater to wide-bodied 747 jets.

Meanwhile, lio and others are very aware of the fact that whoever runs the national air line, Air Vanuatu, will have a key role to play in promoting Vanuatu as a destination.

Ansett Airlines of Australia has managed and operated Air Vamuatu for five years, but reports reaching PIM last month suggested that they were hav ing trouble reaching agreement on the terms of a new contract due to be concluded in June.

The government was insis ting that Ansett pay royalties and increase flights, but the airline had refused. PIM under stands that the government has been approached by a number of other airlines, including Air Caledonie, New Caledonia’s in ternational airline, and also by a group of local businessmen in terested in backing an airline.

Another key influence on the industry has been the declining value of the Australian dollar against the vatu. Linked to this has been reliance on the Aus tralian market and its shrinking contribution to tourism earnings in Vanuatu. lio, Nicholson and the owner of Hideaway Island Resort, Bar

ry Poole, told PIM they were all now looking more towards North America and Japan for potential visitors.

Nicholson believes that in 1983 and 1984 the boom years for Vanuatu tourism -- too many people involved in the industry tended to “take” through increased prices, but failed to re-invest - at the expense of future business.

The ideal was for Vanuatu to get 45 per cent of its visitors from Australia. This would pro tect the country against a de valued Australian dollar, he said.

But for the National Tourism office, the Australian market is one that cannot be ignored.

Last month the country’s 38strong Mobile Force Band was to start a four-state promotional tour in a bid to drum up interest in Vanuatu. Organised at a cost of Austs3s,ooo, the tour will help lift the number of Austra lian visitors to 50,000 a year, the tourist office hopes.

To help the office do its job, the government has this year massively increased its budget from 5 million vatu to 25 million, the equivalent of Austs32o,ooo.

In a country of only 130,000 people that is a huge invest ment, but in an industry upon which Vanuatu pins enormous

hopes.

Richard Thomson.

Australia, here we come ... Vanuatu’s Mobile Force Band was to start a four-state tour of Australia last month in a bid to drum up interest in the country’s ailing tourist industry.

A jump into the unknown at Port-Vila? - Le Lagon's Tokyu Corporation doesn’t think so.