Investing in Tonga
p. 26 · Read in the full issue
THE Bank of Tonga has spent T 575,000 to print 10,000 copies of a booklet, Investing in Tonga, to work as a marketing tool for the king dom. General Manager Brynmor Harris said the publication has already received very favourable comment within Tonga.
It will be available free through Ton ga’s Ministry of Finance, the Bank of Tonga, Ministry of Labour, Commerce and Industries, and through branches of Westpac, Bank of New Zealand and Bank of Hawaii.
Investing in Tonga is a 32-page, large format booklet, with full colour printing and is being promoted as including all the information a prospective investor would need. In a foreword, Industries Minister Baron Vaea said characteristic
elements of Tonga’s economy, financial system and regulations might not be readily understood by outsiders. “Col lecting this type of information is a time consuming and costly exercise which can detract from the overall attractiveness of a prospective investment hence the great value of this publication,” he said.
Tonga’s economy is still based pre dominantly on agriculture, with 60 per cent of the population depending on the land for their livelihood. This sector con tributes about 47 per cent of the nation’s gross domestic product (GDP). The in vestment guide puts the services sector at 42 per cent of GDP, manufacturing six per cent. However, agriculture is declin ing as a share of GDP especially ex port agriculture while manufacturing
and services industries are growing.
The tourism industry continues to ex pand and, while small in comparison with other South Pacific destinations, it has become one of the major sectors of the Tongan economy.
Australia and New Zealand are the kingdom’s main trading partners, buying 70 per cent of Tonga’s exports between them. These countries also dominate im ports, although the United States and Japan have expanded their sales to Ton ga in recent years.
Investing in Tonga is divided into eight sections; Tonga an overview; In vesting in Tonga; Company formation and registration; investment incentives; taxation; banking, finance and exchange control; infrastructure and services, and Tonga’s attractions as viewed by foreign investors. D