DESTINATION VANUATU general info and a little about business
Vanuatu is a Y-shaped archipelago of 83 islands nestled neatly into
the western south pacific. The country is only a couple of hours
flying time from the main east coast ports in Australia and is
serviced by its own airline, Air Vanuatu. The capital of Port Vila is
located on the main island of Efate, while the other major population
center is located at Luganville on the island of Espiritu Santo. Efate
Island is surrounded by rugged sandy coastline with an interior of
verdant rainforest cut only by a few walking tracks. Havannah Harbour
on the northern side was used as a naval base by the entire U.S.A.'s
7th fleet because of its natural haven characteristics and it's deep
water.
The total population is in the vicinity of 240,000 and are of a
Melanesian race and culture. The group was formerly known as the New
Hebrides, under a shared condominium controlled by both the French and
English from 1906 until it gained independence in 1980. The country
now operates as a self-governing republic with a Westminster style of
political system and is still a member of the Commonwealth.
The islands are very diverse in both culture and economy. Tourism
plays a very important part in the local economy and is the major
employer of the indigenous people known as Ni-Vanuatu. They are
enthusiastic and are an asset to the industry due to their polite and
friendly nature. The country is still very much dependant on the
subsistence agricultural industries of copra and locally grown island
style vegetables. But more and more emphasis is being placed on
fledgling exports like Kava, Sandalwood Oil and an increasingly large
interest in Tamanu Oil, a natural skin care and healing oil gaining
popularity for use in make-ups and skin care industries. Obviously,
being an island nation, seafood is one the main staples and is
regularly traded in the various markets throughout the country.
Vanuatu is renowned for its quality beef industry with exports mainly
going to Japan. As it is organically produced, (none of the pastures
are exposed to any chemicals) it makes it very desirable in a world
that is looking to agricultural products that are unaffected by
contaminants.
Most of Vanuatu's 90,000 tourists per year come from either Australia
or New Zealand, but as the 2 main airports at Port Vila and Luganville
have been upgraded to take 767 and 737 planes, the Airport Authority
and the National Tourism Office is continuing to look to expand into
the more lucrative destinations of Asia, Europe and the USA. With the
skies of Vanuatu opening up to competition in the early part of this
century, the islands are now well catered for by a number of airlines
giving many options for flight arrivals at very competitive rates. All
levels of accommodation are catered for, from the backpacker styles to
the many 3 and 4 star luxury and family type resorts. There is also
many new luxury style beachfront houses and bungalows that are in high
demand catering for the group and/or large family, short and long term
holiday market. In the outer islands there are a large quantity of
traditional and eco style bungalow accommodation for the many visitors
who explore these wonderful areas. The land-diving at Pentecost
Island, the active volcano on the southern island of Tanna and the
pristine white beaches of Champagne Beach on the Island of Santo are a
few of the many spectacular sights available to visitors to Vanuatu.
The recent upgrading and sealing of roads around the main Island of
Efate and the main route from Luganville town to Champagne Beach has
created much interest and both of these will see much tourism and
investment activity along both of these roads as well as making it
easier for the locals to participate in tourism projects. Already
there are several multi-million dollar properties and golf course
complexes slated for construction, some nearing completion at the end
of 2011.
Vanuatu is now a major visiting stop for many cruise ships as this
side of the tourism industry grows exponentially with every year.
Vanuatu now enjoys something like 90 to 100 cruise ship visits per
year to various parts of the country, with the majority of these
visiting the capital Port Vila. Much of the money that is brought in
by cruise ship visitors stays in the local economy as many taxi and
bus owners along with local tour operators share in the financial
benefits.
There is a wonderful mixture of continental and local cuisine
available to visitors with over 30 restaurants in Port Vila alone. The
major resorts have spent millions of dollars over the past 10 years
investing in refurbishment and extending facilities to attract a
larger base of holidaymakers to our beautiful country. Many of these
resorts also boast excellent business and conference facilities along
with Day Spa and various water and land sporting facilities.
"I wish I could tell you about the South Pacific." wrote James A
Michener. "The way it actually was. The endless ocean. The infinite
specks of coral we call islands. Coconut palms nodding gracefully
towards the ocean. Reefs upon which waves broke into spray and inner
lagoons, lovely beyond description. I wish I could tell you all about
the sweating jungle, the full moon rising behind the volcanoes, and
the waiting." This excerpt from James A. Michener's immortal Tales of
the South Pacific tell of the magic and the idyllic scenery that
abounded in the New Hebrides. The mystery, the beauty and the
Melanesian pace of life still remain today.
BUSINESS VANUATU
Vanuatu has pretty much lost its tax haven tag and would like to be
better known for its well developed Offshore Finance Center. There are
no income taxes, withholding taxes, company taxes and capital gains
taxes. There are no gift, death, estate or succession duties applying
to companies, trusts or individuals. Of course this begs the question
‘Well, how does Vanuatu generate its income?”
Vanuatu’s income comes mostly from indirect fees through business
licences, stamp duties on sales of assets, and one of the fairest
Value Added or Goods and Services Taxes in the world. You pay 12.5% on
everything and you collect 12.5% on everything. Not having to account
for income or company taxes, it makes it easy to run your business. At
the end of the month you calculate the difference and either you pay a
cheque or collect one. There are duties collected on imports as well.
Also, one of the fairest ways for a developing nation to collect
revenue, while at the same time offering a small amount of protection
to local manufacturing industries.
The Offshore Finance Center has been operating since 1971. The centre
now has thousands of international companies registered and is a major
income earner for the Vanuatu Government. The overall supervising
body, which regulates the industry, is the Financial Services
Commission and also acts as a registrar of companies. The Commission
also ensures proper controls to avoid any illegal or unlawful
activities that are so often associated with tax havens, which may be
accused of laundering criminal proceeds.
Vanuatu's other major industries of tourism and agriculture also
contribute heavily as earners to the Government. There is an
interesting mix of people in Vanuatu, which creates a multicultural
feel to the Islands. Much has been done over recent times to increase
the numbers of tourists to the country. Much private capital is put
into the destination marketing arm of the Tourism Industry the Vanuatu
Tourism Office and a lot of time and positive energy has been spent to
ensure this valuable industry is promoted to the fullest. The major
change to investment over the past 10 years is the opening of the
airline industry to competition. This has greatly increased both
tourism numbers and investment. With airlines such as Pacific Blue,
Air New Zealand and Air Pacific now operating regular flights, access
to Vanuatu’s natural surroundings has flourished.
Because of its reduced tax situation, Vanuatu allows a number of
excellent opportunities for investment. Real estate prices, while
reasonable, allow a very good rate of return. Over the past 10 years
the Country has allowed new financial and legal institutions and banks
to open up and so they are now, more than ever, ready to offer advice
as to how best gain a better return on investments. There are now 4
major banks in the Country along with a number of private lending
institutions and leasing organisations and this has increased
competition between the banks and private lenders. The introduction of
Strata Title legislation and an excellent Land Title Act present even
greater advantages to investment in this tropical paradise and while
land is still only sold on a lease arrangement, extensions to 75 year
leases on land are now readily available.
Vanuatu's infrastructure and communications are well developed,
keeping up with progress throughout the rest of the Pacific and the
world. In the area of communication, Vanuatu has been quick to
establish a competitive regime, and has seen the areas of internet
availability and access to new providers increase dramatically over
the past few years. Recent development into the areas of mobile
communications and the possible laying of fibre-optic cable between
Vanuatu and Fiji will see Vanuatu with some of the fastest and most
accessible internet and mobile services in the Pacific. Doing business
in Vanuatu will be as easy as any other developed country in the
world. Telecoms companies are quick and efficient to deal with any
issue and will assist with any communication enquiry. In other areas
of infrastructure, Vanuatu is moving forward with plans for a new main
wharf in Port Vila, road extensions and upgrades throughout the outer
islands while studies have been carried out to develop better sea and
air port facilities in the outer islands. This will allow a better and
faster movement of agricultural commodities back into the main cities
and towns. The opening up of domestic shipping to foreign ownership
and the increased tonnages has allowed for some major investment in
this area, which has been an area of weakness and a drawback to
economic development in the outer islands. With better communications,
shipping and wharfing facilities into the future the growth of the
Vanuatu economy is assured. Being one of the few Pacific Island
nations whose economy is growing at a reasonably rapid rate.