New Caledonia Picks Up

Tourists and trade are on the way back.

CLASHES in New Caledonia be tween French settlers and in digenous Kanaks have dealt a severe blow to the island’s economy.

Only 75,000 tourists visited the island this year, a considerable drop on the figure of 90,000 the year before. Aus tralians, particularly, are staying away in droves. In 1984, 26,500 Australians holidayed there. When the first viol ence broke out the numbers plum meted. The following year only 5,600 chose New Caledonia.

The number of visitors is creeping back up, however, with 9,800 Aus tralians venturing to New Caledonia last year.

The industry already turns over around CFPB billion a year, and New Caledonian authorities hope they will eventually be able to tempt 200,000 tourists to visit. The slump in tourism is worrying because the island’s main export earner, nickel, is suffering from severely depressed prices.

New Caledonia is one of the weal thiest islands in the South Pacific a wealth that is built on money pumped into the territory from France, but also on its rich nickel reserves.

The island is the world’s fourth big gest nickel producer, hiding a third of the world’s reserves beneath its rela tively sparsely populated surface.

However the USSR is another signifi cant nickel exporter and last year it an nounced a huge step up in its nickel exports, which forced prices down.

There is every indication that they will continue to flood the market. Concern over the future of the nickel industry has acted as a deterrent to new investment.

The mining industry remains the backbone of the economy, employing 3000 people and accounting for 85 per cent of export revenue.

While the industrial sector is begin ning to diversify, it is unlikely that New Caledonia will be able to establish a manufacturing base. The minimum salary is $1,200 a month fully 20 times higher than that paid in neigh bouring Vanuatu.

The revenue raised from its export activities only covers about 85 per cent of the value of the territory’s imports.

Despite the tension between France and Australia over the question of in dependence, trade with New Cale donia is growing rapidly. Australia sold more than $5O million worth of goods to the island last financial year, an in crease of 25 per cent. Australia now supplies most of the island’s fruit and vegetable requirements.

As well as the French Overseas Ter ritory of New Caledonia, with its pop ulation of 145,000, France administers French Polynesia (166,000) Wallis and Futuna (12,500).

France’s spending on the Pacific territories is considerable and totals in the vicinity of $ A24om on New Cale donia and $A4OOm on French Poly nesia per year. □