The Economy of the Republic of Vanuatu, Based on Tourism, Green Wave, Finance Off-Shore

Tourism, one of the major growth industries.

Tourism, despite the world-wide economic recession, represents a fast-growing sector, with a milestone of 100,000 visitors having been achieved in 2009.
Most of them come from Australia, New Caledonia and New Zealand.

The country is now well established as an attractive tourist destination and significant potential exists for rapid growth. Funds have been committed and the promotion and development of tourism continues to be actively encouraged. Increased flights by airlines and the introduction of additional flights being scheduled have created a demand that is has tested both the capacity of existing hotels and the current infrastructure of the industry.

The country really needs investments, not only to modernize existing hotels, but also to develop its tourism through its infrastructure and agriculture.

A strong potential of economic development.

In this country that a number of accommodating tax laws turned into a tax haven and where foreign capital nowadays represents two thirds of the GNP, food crops and subsistence fishing continue to set the gentle pace of life in most villages.

Although cocoa, coffee, kava, vanilla, pepper, pumpkin are starting to take off, copra remains the prime resource of a country where the economy also relies on the export of beef and fish and logging operations.

Regional dynamics.

Vanuatu is continuing its ambitious program of cooperation with major Pacific economies, including Australia, New Zealand and New Caledonia, while promoting regional solidarity within the Melanesian space.

The Green Wave.

The country is well aware of today’s stakes as a result of climate change and has decided to play the green card to promote the local economy and high quality agricultural products (cocoa, coffee, kava, vanilla, pepper, beef).

Renewable energy and fair trade are present throughout the country. Ecotourism is gaining ground.
The legislation banning the use of single-use plastic bags came into effect on July 1st, 2018.

This was as a result of a petitioncalling for « no plastik bag, plis », at the initiative of a small group supported by the whole population. Following upon that, a Green Wave movement has just been established in support of an organic Vanuatu.

In addition, fishing bans have been imposed in several areas in order to protect marine life and support its reproductive capacity.

The Banking Sector.

The banking sector is very well structured and sound. Vanuatu is no longer on the OECD’s ‘grey list’ of ‘uncooperative tax havens’ (source : www.oecd.org).

The banking system comes under the supervision of the Reserve Bank of Vanuatu and is scrupulous in complying with international requirements.

There is no exchange control and the banking sector abides by the bank and trade secrecy rules.

Commercial banks such as Bred Bank, have well situated premises and offer a wide range of services : loans, deposit accounts, foreign currency accounts, on-line banking, etc.

There are also offshore banks, such as Pacific Private Bank or Moores Rowland Vanuatu, (opening an account outside of the country borders) which in turn offer private personal wealth management services.

There is no lack of lawyers and chartered accountants available to provide advice and assist in managing the assets, finding simple and effective succession planning solutions (no death duties, no accounting to provide) or suggest appropriate investments, gild-edged or innovative.

Long story short, this financial haven with its tax incentives(NO TAX) invites us to take advantage of its assets : bilingualism, know-how and variety of operators in a country with a strong economic development, which fits in with regional dynamics. Currency 1€eur =116 VUV (VATU)

Flag of Convenience Country (Registration of Yachts, Cargo, private…),Timework : 40 h/week, Guaranted Minimum Wage : 275€, Real Groth rate 3,2% in average constanting growing.