KINGDOM OF TONGA - SPREP

Strategic Development Plan 8 2006/07-2008/09
The well-known factors of small size, geographic dispersion, remoteness from
markets and vulnerability to natural disasters act as constraints on development. But
the country is well-endowed with natural resources that provide the foundation for
agricultural, fisheries and tourism development; and it has a well-educated, Englishspeaking
workforce. In addition, there is a large emigrant population which
maintains close relations with family in Tonga and which possesses savings, knowhow,
market connections and entrepreneurial talent that could be tapped. This
emigrant population is in a position to identify and exploit specific investment
opportunities.
Tonga’s economic potential could be realized if impediments to business
investment were removed. For example, increased tourism is a possible source of
increased incomes and employment throughout the country. Figure 3.1 shows the
positive correlation between tourist arrivals per head of population and income per
head. Tonga’s relative position is shown in Table 3.1.
GDP per capita (US$), 2002
25,000
20,000
15,000
10,000
5,000
0
Source: Table 3.1.
Figure 3.1: Tourism and Income Per Head
R 2 = 0.8373
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Tourist arrivals per capita, 2002
Looking to the Future, Building on the Past 36