Tourism Development in Niue and the Impact of New Zealand's Aid

Abstract

Being among the smallest self-governing states in the world, Niue – the ‘Rock of Polynesia’ – experiences development challenges because of its small size, isolation, remoteness and fragile natural environment. Development strategies have ranged from growing various crops for export to small-scale manufacturing but developing the tourism industry has been the only option that has experienced significant growth and gained consistent support from the Niue government and from New Zealand’s aid since the 1970s, with a renewed effort since 2009. Research by the UN and academics alike show the positive role tourism can have in small island developing states (SIDS). Current research suggests that where other industries fall behind due to the unique disadvantages of SIDS, tourism shows potential to create employment, diversify the economy and generate foreign exchange. However, to be successful, to mitigate associated risks and retain these benefits in the destinations there must be local control, and prioritisation of the environment and local needs.

This research overviews the nature of Niue’s tourism industry in 2018, explores the barriers and opportunities that exist and the needs for further tourism development. Gaining an understanding and analysing the relationship between New Zealand’s aid and Niue’s tourism industry is a key objective of the research. The implications of this relationship may alter the model of Niue’s political economy which is currently defined by the MIRAB (migration, remittances, aid and bureaucracy) model. The small population and lack of resources in Niue are significant barriers to success in gaining significant tourism numbers, which is why a high-end market has been targeted, although it needs to be determined if the corresponding requirements of a high-end demand can be met. This research was informed by interviews with key informants from the tourism industry, the Government of Niue, New Zealand High Commission and local leaders. Local and tourist perspectives were gathered through questionnaire-surveys and a literature and documentary analysis were also drawn on. The findings provide a detailed insight into the nature and current situation of Niue’s tourism industry. Based on the findings and consideration of the literature this thesis concludes by giving recommendations for the Government of Niue, the tourism industry and the New Zealand Ministry of Foreign Affairs and Trade to consider. The study helps address a potential gap in recent literature regarding Niue and considers an alternate model to describe the country’s political economy.