Tr-2.docx

Tourism already plays an important role in the economies of Palau, Fiji, Samoa and Vanuatu. Tourism is an important source of export earnings for many PICs. In Samoa and Vanuatu, tourism generates the majority of export earnings. In Tonga it is the largest single source, about five times as that of agriculture and fisheries combined. For Fiji it has replaced sugar as the primary export earner. Tourism is also a tax base, which generates revenue from targeted taxes, like Fiji’s service turnover tax on hotels and restaurants. Targeted taxes also give governments another means to influence visitor arrivals numbers by affecting prices, like Palau’s efforts to limit arrivals via increased departure and hotel taxes. Tourism is a significant employer in those PIC11 where tourism is a major industry. South Pacific Tourism Organization (SPTO) estimates indicate the highest levels of employment in Tonga, 15 percent, Samoa, 18 percent, and Palau, 50 percent.