Tourism to the Cook Islands retrospective and prospective

Tourism to the CookIslands Retrospective andProspective While

tourism

has been mostly a good thing for the Cook Islands,

it also brings challenges.

Then: the author at Rarotonga Airport in 1967.

70 CORNELl HOTEL ANDRESTAlJRANTADMlNlSTRATlONQUARTERLY

out, \GsitorF from New Zealmd could land at luring tlir 1000s and early ’70s the tourism industry in the Cook lslmds wx barely more than J theoretical concept. Sporadic flights from NC\\: Zealmd to Rarotonga brought mostlv business and gowrnmtmt travelws to .I lmding strip that w-as ,I

First-hand Experience, Then and Now The author lived in the Cook Islands for two and one-half years, from 1966 to 1968, when he was a missionary for the Church of Jesus Christ of Latter Day Saints. During that time he spent several months each on the southern islands of Rarotonga, Aitutaki, Atiu, Mauke, and Mangaia. He learned the Cook Islands’ Maori language and developed a great love for these islands, the wonderful Polynesian people living there, and their culture. After being away for over 30 years, he returned to the Cook Islands to conduct research for this paper in June and July 2000. During this time he and his wife gathered information and interviewed many people from business, government, and education on the islands of Rarotonga and Aitutaki. This article is based on the information, interviews, and the author’s personal experiences in the Cook Islands. Those whom he interviewed included Professor Emeritus Ron Crocombe, University of the South Pacific; Sir Tom Davis, former prime minister, Cook Islands; Atatoa Herrman, Secretary for the Ministry of Works, Energy, and Physical Planning; Ina Herrman, director of operations within the Ministry of Education; John J. Herrman. centre director, University of the South Pacific, Cook Islands Centre; Professor Jon Jonassen. Brigham Young University-Hawaii; Thomas Koteka, general manager, The Pacific Resort; Ken Matthews, Secretary of Education; Prime Minister Dr. Terepai Maoate; Pauline Napa, proprietor, Kiikii Motel; Teresa Noovao, training coordinator within the Ministry of Tourism and Transport; Robert Skews, managing director, Island Hopper Vacations; Ewan Smith, managing director, Air Rarotonga; Chris Wong, chief executive, Cook Islands Tourism Corporation; Robert E. Worthington, Cook Islands honorary consul; and Yun Zu Bao-Carlaw, proprietor, The T-Shirt Factory.

cot-al run\vay bordtwd by grm strips. The grass border constituted the Il,irotong,l (Golf Club. Indwd, \xhtw I hit ;I f&v golf b,rlls xound thaw grassy aws in the l%Os I found the coral runm~g to Lx a significant hxard. T\VO other island\, Aitutaki and Penrhyn, hod similar landing strips that \vere built by the U.S. militq~ during World War II. In the 1900s dilapidated l>C-3s carried passengers on a wcckl) flight fi-om Salnoa to Aitutaki and then to I\arotonga and back. In t-&x, that’s ho\v I a-rived in the Cooks, hdviilg flown fi-om the U.S. mailllmd to Hm~aii and then to Samoa. Unfi,1-t1111at+-, Ollt‘ of the planes crashed not long after I ,lrrived 3t Rarotonga, and thr 1X-3 flights mw-e thereafttcr s~~spended. I’rivClte y‘lchts m~ould infrcquetitl) stop briefly for resupply dt the Avatiu Harbor on I
Approsinutel); once r\w-y month one of two large cruisr ships of the Matson Lines. either the .IlmYlm.w or .\I0rlfcr.r’): \\ould anchor offihorc at Rarotonga as it traveled a route fioni Los Angeles to Tahiti and New Zealand and twmally back to Los Angeles. We,lther permitting, island tmtertniners x\,ould launch lighters (about the size of a standard lifeboat) and go on board the cruise ship for a short time to provide dancing and musical t‘ntertainment for pawngers. At the sanw time some pwengers would come ,~shore via the lighters. On balance, though, connections to the Cook Islands mw-e slim iii the 1960s. When my time in the islands mded in 106X, the only \v,ly I could dqwrt the Cooks was to travel on the ,IZ~rmq~ to NC\\ Zealand and thrn fly back to the United States via Fiji and Hawaii.’ Other ships. Other large cruise ships would occasionally mchor ofefshore. The l
April 2001

l

71

Exhibit

1

Outbound flights from Rarotonga Flights

Year 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Polynesia

59 73 116 177 215 224 266 372 386 446 445 308 379 388 400 486 463 442 420 385 544 546 573 548 503 323 437 384 486

Fiji

Tahiti

NZ

Apia

Honolulu

-

40 40 64 58 65 56 57 54 57 64 84 51 53 63 57 52 21 52 51 49 52 52 53 47 51 53

17 9 15 59 63 72 53 52 68 137 133 99 113 106 106 88 59 52 86 49 146 103 152 180 115 53

4 15 57 82 93 126 161 138 109 99 57 65 57 57 153 209 175 121 136 157 163 157 162 169 156

50 62 11 23 43 94 44 102 128 103 48 88 92 83 80 77 -

57 52 93

81 105 101

187 167 228

-

-

38 16 2 5 19 1

52 52 84 63 57 50 50 53 52 60 60

Other

20 22 5 3 30 105 123 48 51 88 120 100 a5 149 72 35 51 17 73 71 29 41 8 60 -

and the Cook Islands

Strewn across the Pacific Ocean, the islands comprising Polynesia fall in the roughly triangular area bounded by Hawaii at the northern point, New Zealand (Aoteroa) at the southwestern point, and Easter Island (Rapanui) at the eastern point. In the center of this Polynesian triangle are the Cook Islands. To the east are the Tahitian Islands and to the west are the islands of Tonga and Samoa. Hawaii is 3,000 miles to the north, and New Zealand is 1,600 miles to the southwest. The group comprises 15 islands spread over approximately 2,000,OOO square kilometers of ocean. Polynesians first inhabited these islands approximately in the year 800. Although Spanish explorers sighted Pukupuka in 1595 and Rakahanga in 1606, the first notable record of a sighting came in 1773, when Captain James Cook sighted the first of the eponymous group of islands, Manuae atoll. In 1777 Captain Cook logged visits to Palmerston, Takutea, Mangaia, and Atiu. Captain William Bligh sighted Aitutaki and mutineer Fletcher Christian sighted Rarotonga in 1789. The official discovery of Rarotonga, however, is credited to Captain Phillip Goodenough in 1814. Divided into two geographic groups, the islands consist of a total of 240 square kilometers. The islands of the northern group are low-lying atolls named Nassau, Penrhyn (also referred to as Tongareva or Mangaroaro), Pukapuka, Rakahanga, and Suwarrow. The islands in the southern group, which are a combination of volcanic and atoll origin, are Aitutaki, Atiu, Mangaia, Manuae, Mauke, Mitiaro, Palmerston, Rarotonga, and Takutea. Rarotonga is the capital of the islands and is 28 kilometers in circumference. The population of the Cook group was approximately 18,000 in the 1960s and is now approximately 16,000 due to emigration. In 1965 the Cook Islands gained independence from New Zealand and became selfgoverning, though the islands remained financially reliant on New Zealand-a relationship that is gradually diminishing. The islands operate in a “free association” relationship with New Zealand. Cook Islanders have New Zealand passports and have free access to New Zealand. The islands’ currency is the New Zealand dollar. The islands’ government is a parliamentary system with a prime minister and two major political parties.--J. T:

72

HOTELAND RESTAURANTADMINISTRATIONQUARTERLY MKNEll

islands’ economy for the reason that I have just described, namely their isolation. Without regular and easy air access, the Cook Islands could not become a tourist destination.

Map

of the Cook

Islands

region

wide-body

jet at Rarotonga

A Real Beginning It would be fair to bay that the tourism era in the Cook Islands began in 1974 after a project to lengthen and upgrade the runway on Rarotonga was finished. The runway was then able to accommodate long-haul aircraft, including Boeing 747 jets. To do this, the perimeter road around the island was rerouted and landfill was added to extend the runway’s length to the reef. Even this extension does not allow a fully loaded 717 to take off (with masimum fuel, cargo, crew, and passengers). Airport facilities were also expanded and upgraded. The airport upgrade allowed for a dramatic increase in flights to and from Rarotonga. As a baseline, 1 16 international flights departed from Rarotonga in 1973, or about two per week (see Exhibit 1). In 1974, the first full year the expanded and upgraded airport was open, the number of flight5 increased to 177. 13y 1980 the number was 416 flights. This included flights to Fiji, Tahiti, New Zealand, Apia (Samoa), and Honolulu. Afier a series of ups and downs, the number of international flights out of Rarotonga was up to 186 in 1999. Flights to and from Apia Lvere no more, but the number of flights to and from New Zealand increased from 336 in 1990 to 228 in 1999.” While in the islands in 2000, 1 learned that the air carrier Canada 3OOO would be inaugurating flights from Canada through Los Angeles directly to Rarotonga. Not only should this help Canadians get to the islands more easily, but it should also make connectiom easier

Now: An Air New Zealand

International

Airport, June 2000.

April 2001

l

73

Aitutaki Islets and Lagoon, photographed by Ewan Smith, The faint light colored line near the top of the photograph inland) is the coral landing strip.

Culture and Tourism The culture of the Cook Islands is, like other Polynesian micro-states, one of co-existmg with the land and the sea. Decorations, attire, tools, music, song, instruments, and so on that were a necessary part of an ancient Polynesian’s life are now sought after as souvenirs or mementos as part of tourists’ visits to the islands. Traditional musical performances and dances were a sacred telling of the story, legends, and history of tribes. These performances were lengthy, methodical, and slow. The unaided human performance was considered perfect. Costumes were laboriously hand made of natural fibers, seeds, leaves, shells, bark, and husks. Costumes were modest and covered much of the body. Tourism has changed much of this tradition. Tourists have short attention spans, are often impatient, and want to experience as much as possible during their vacation. Now cultural displays of music and dancing Include non-Cook Island components, the performances are shorter and faster, and the costumes are less modest, baring more of the body. Frequent performances cause the costumes to deteriorate quickly, and thus they often are made of or repaired with non-natural materials (to increase durability). The music and entertainment is almost a Polynesian “chop suey.” Now there is concern with electronics, amplification, exact pitch, and tone. All of those changes are of great concern to traditionalist islanders, especially the older citizens. Some of the religious leaders are concerned about the effect of tourism on their congregations. They fear that as tounsm increases, the need for working on the Sabbath Day will also increase. This will prevent their members from attending church services. They are also concerned about tourists who attend their church services in immodest or skimpy attire. These religious leaders do not want young people influenced by these appearances. (I am indebted to Professor Jon Jonassen, Brigham Young University-Hawaii Campus and a native Cook Islander, for much of the above information.)-J.T. _I

74

IME’I 11Ij HOTELAND RESTAURANTADMINISTRATIONQUARTERLY

1998 (used with permission). (just right of center and just

Exhibit

2

Arrivals ‘iear

on the Cook I

Islands

,&,;;;;,,,

1971 1972 1973 1974 1975 1976 1977 1978 1979

.1_1_L____ I Airivais NE!lmange

2.143 2,236 2,882 8,853 12,245 12,282 16,823 20,865 23,206

?A E,, L-r,4 II

1980

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

21,894 21,270 22,622 29,173 31,918 35,130 37,779 38,573 38,455 38,957 45,395 56,146 59,384 63,923 54,239 54,286 56,669 55,552 62,970

2,251 3,235 4,015 10,725 12,482 12,789 16,711 21,504 23,738

-108 -999 -1,133 -1,872 -237 -507 112 -639 -532

9+ +clfi L.J,.sVV

22,693 22,072 22,889 29,017 31,801 35,219 37,330 38,567 38,422 39,491 45,021 55,609 58,937 64,141 52,945 56,899 57,951 57,260 61,096

Eg;;J;e,

hI..I ^h.^.._^ - I mIII”aIJ II..:..r,r IYC’L b,larlytz

1,154 1,203 1,609 5,129 7,644 8,066 12,330 14,737 17,662

1,027 1,363 1,431 5,045 7,549 8,195 12,018 14,845 17,671

-!,!m

IQ fxa I”,““”

!9,7!2

-799 -802 -267 156 117 -89 449 6 33 -534 374 537 447 -218 1,294 -2,613 -1,282 -1,708 1,874

17,246 16,349 18,906 24,644 27,389 28,378 29,569 30,194 29,503 30,439 39,976 50,190 53,569 57,293 47,899 48,354 49,866 48,629 55,599

17,384 16,149 18,968 24,274 27,058 27,571 27,546 28,491 27,804 29,675 40,485 50.180 54,244 57,909 46,773 50,137 49,972 49,015 53,084

127 -160 178 84 95 -129 312 -108 -9

989 1,033 1,273 3,724 4,601 4,216 4.493 6,128 5,544

-43

4,842 1 4,648

-138 200 -62 370 331 807 2023 1703 1699 764 -509 10 -675 -616 1126 -1783 -106 -386 2515

4,921 3,716 4,529 4,529 / 6,752 8,210 8,379 8,952 8,518 5,419 5,956 5.815 6,630 6.340 5,932 6,803 ~ 6,923 I 7.371

Pz?_ “q.JLa’,“I CJ 1,224 1,872 2,584 5,680 4,933 4,594 4,693 6,659 6,067

5,!324 5,309 5,923 3,921 4,743 4,743 7,648 9,784 10,076 10,618 9,816 4,536 5,429 4,693 6,232 6,172 6,762 7,979 8,245 8,012

Mr.+t,,,ca,tyr rkan”a #“CL -235 -839 -1,311 -1,956 -332 -378 -200 -531 -523

-$I@ -661 -1,002 -205 -214 -214 -896 -1,574 -1,697 -1,666 -1,298 883 527 1,122 398 168 -830 -1,176 -1,322 -641

Source: Cook Islandsgovernmentdata.

company were

and television

pri\atized.

former

network.

Several

gOVt‘t-ntllent

hundred

enq3loyees

and

fatnilies left the islands, mainly for New Zealand. Fewer business travelers catiie from

to the islands,

New

Zealand.

was avail,lble

for tourism

13): 1999, however, economic thr

\voes

healthy tourism Peripatetic (mostly

Grrnlany). third most

and

cal ~phrav~l spring

be noted

and sutntntx

contributing

Ctctor

ofarriKils

that the politi-

in Fiji during

the

of 200( 1 \VJS J to the inct-ease

in the (:ook

Islmds

that

Frett~ to 4~0w ;I industry. Europeans. from

were

were from Ne\v of the remainder America.

Onefrom

the U.K.

Approximately

lia and North

promotion.

the government’s

of 1’999’s visitorc

Europe

It should

h‘td diminished

3iii1Cj statistics

third

especially

and less money

and

another Zealmd, with from Austra“’ Bv corn

Increasing

accommodations.

An x~ditiotul tttrctsurentent of the gtmvth of- tourism is thr incrzasr in the number of accommodatiotls atailablc

on l
from

to 1999. In 197 1 Rarototig2 four

lodging

,ic-comtitod,ttiotis

107 1 offrred \vitli

April 2001

l

75

prevalent on Exhibit 3 Tourism employmentin the Cook/s/ands Number of Year [operations 19871 1988 / 1989 1990 1991 1992 1993 1994 19951 1996 [ 19971 1998 1999

17 15 15 16 23 24 25 26 35 35 34 32 32

Number of rooms

Number of beds

409 442 481 497 561 587 548 561 672 742 704 757 777

956 934 1049 1239 1309 1492 1389 1348 1707 1956 1896 1989 2130

Male Female Resident resident resident Expatriate employees i employees ~employees remployees 279 244 220 258 269 366 377 400 427 405 407 387 423

108 87 84 119 108 123 147 137 151 149 161 159 172

171 157 136 139 161 243 230 263 276 256 246 228 251

15 20 26 22 21 22 21 26 33 29 17 17 21

38 beds. '~ In 1977 the C o o k Islands ( ; o v c r n m e n t , Air N e w Zealand, and the Tourism Bureau oF Ncxv Zealand opened the 151 -rOOln lZarotongan 1Lcsort.~2 (Today the l~,arotongan is privately owned and operated.) By the end o f 1999 there wcrc 32 lodging establishments comprising 2,13() beds and employing 423 local employees and 21 expatriates. ~ (Scc Exhibit 4 tbr average occupallcy rates.) While I could not obtain overall AI)I~, statistics, two examples indicate healthy rates. T h e o\w)cr o f the 24-unit, seK-catering Kiikii Motel, where 1 stayed, indicated that she had a 71)-percent annual occupancy and an A1)K oI'NZ$12() (approximately US$6t)). l ' h c general man agcr oF the Pacific Resort indicated that he had a ICI1-VCal-a\cragc o c c u p a n t y percentage oF just trader 8() percent, with an A I ) R o f N Z S 2 1 ( )

(USS 1()5). S o u t h e r n p h e n o m e n o n . Tourism developlnCnt is, o f course, most ( ; m ' ¢ n m . n t (!t ~/l~ (.'ook l,/,md., Rct,o~ on ] b m i / m RHalcd l,ocilili,~ o, /Gmm,,q,1and .4img,d,'i

(lZalotongu I$oi'fiLla{kma,d& Associate,. ASMAI) I~,c,carch,()crobcr IuT,g).p. I(). ~ It,hi.. pp. 3~, 31.

" ( .'ooL' lJ,ut,t~

.

htlm,d Nnui~li.tl t~Illh'ml.

luuc 2i1()().liflqc (~.N.

76

I:IIRNEI,I, HOTELAND RESTAURANTADMINISTRATIONQUARTERLY

the capital island oF lZ,arotonga, although devclopment has reached the outer islands in the southern group to varying degrees. There is basically no tourisln ill the northern group. T h e island o f Aitutaki, 141) kilometers north of l~,arotonga, is the only outer island to have developed a notable tourism business. It hosts several small motels, hostels, backpacker units, and bungalows. There is a small, first-class resort on an outer m0m (islet) owned and operated by a ]idfitian c o m p a n > This resort and the other lodging acc o m m o d a t i o n s can take adwmtagc or one of" the most beautifid la+ goons in the Pacific ()cean. Indeed, a l a g o o n cruise has b e c o m e the island's main tourist attraction, and it is a truly Wol]derfifl experience. Atiu, Mauke, Mitiaro, and Man gala are just starting to develop as tourist destinations. The key to that developlnent has been the construction ot'a small landing strip on each o f t h o s e islands. The iutcrislalM airline, Air l~,arotonga, no\x visits each oF those fi)ur islands at least twice a week. Each island has one or tx~o small visitor accol]lmodations but not a lot o f other development. Several islands have ccotourism prospects. Atiu and Mauke have underground limestone caves. Mitiaro has two slnall lakes, where iti!,'i (eels), an island delicac> can bc caught. The southernmost o f t h e C o o k Islands (and geologically a m o n g the oldest of- the Pacific islands), Mangaia, has a large cave with various FOOl]IS and beautififl Formations. With little tourism demand, the llorthern islands currently have no lodging accommodations, although there once were two small f:acilitics on Malfihiki. Air P-,arotonga is available to Manihiki and l'enrhyn, and the northern islands can also bc reached by inter-island vessels.

Exhibit 4 Hotel occupancy in the Cook Islands

Year

Maina Superstore,

Aitulaki,

Business

Growth

The advent and growth of tourism in the Cook Islmds has brought forth a collection of business vutures related directly or indirectl) to tourism. Lodging. From a handful of guest rooms or1 Rarotonga in the 10005, there are ilow approximately 777 rooms in 3 variety of forms ranging fi-om hotels and resorts to small motels and self-catering units. ‘-I These establishments are nearly all built near the beach md adjacent to the main road that encircles the island. Price5 range from NZ$30 per night at the Lovely I’lmet backpackers’ units to

1Occupied

94,494 1987 149,160 81,247 1988 161,240 98,750 1989 175,529 110,316 1990 ! 181,446 1991 ~ 204,650 134,288 1992 214,276 151,161 1993 200,079 140,923 139,110 1994 1 204,829 1995 245,323 139,835 1996 270,668 155,588 157,083 1997 256,833 , 161,316 1998 276,140 i 1999 283,449 i-174,717

July 2000.

A progression. As they are today, one can see four stages of tourim development in the Cook Islmds. Rarotonga is the most developed, most accessible. and has m adequate selection of services. Aitutaki is less developed, but still has all the basic service5 needed by tourists. The other southern island5 are just in the beginning stages of developn~ent, m.hile the northern islands have not yet begun to develop tourism ,lnd have no services.

Roomnights available

Occupancy rate 55.4 46.8 53.4 60.3 60.2 55.0 57.2 60.1 ' 50.3 49.2 54.0 52.9 61.2

NZ$130 per night for a self-catered unit (Kukll Motel) to NZ$2XO for ;I room at the 53-room Pacific Resort. While 011 the island of Aituuki, I stayed at To111’sBeach Cottage, ‘I small accommodation on the lagoon beach ownrd and operated by 111); El-irnds, Mimau and Taraota Tom. In contrast to the family-like atmosphere of- Tom’s &ach, the Septrnber 13, 2000, issue of the Cook Islarlds Xu15 carried an article oua lit’\\’ lining pl; 111s to construct NZ$lO million, 75-1-00111 resort on the island of Aitutaki.” Food service. I cm rrcall only one true restaurmt from my time in the Cook Islandc during the I OOOs. Today the islands offer many restaurants with a \:ariety of themes, including Japanese. Italian, American (steak house), and Polynesian. A largr nunlber of roadside stands are stocked with all manner of f&h fruits, vegetablrs, and wacks. Attractions. Fe\v ‘Ittractions operated in the 1960s since f&\ tourists Lrisited. Today. in contrast, such businesses include island circle tours. inland md cross-irland hiking, scenic island flights, fishing, scuba

llli,i.

April 2001

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77

Exhibit 5 Gross domestic product in 1999 dollars GDP Year

Annual growth rate(%)

1982

-

Population

GDP per capita (NZ$)

Growth rate per capita (%)

17,400

1,951

-

9.4%

17.400

2,134

9.4%

24.5% 21.196

17,100

2,703 3,254

26.7% 20.4'0

19.4"b

16.700

4,002

23.0'0

12.7%

16,500

4,563

14.0%

14.796

17,700

4,879

6.9%

1988

33,948 37,125 46,230 55,973 66,834 75,295 86,353

1989

95,611

10.7%

16,500

5,795

18.800

1990

107,117

12.0%

17,000

6,301

8.7%

1991

120,871

12.8%

18,200

6,636

5.300

1992

134,069

11 .O%

19,000

7,056

6.3"o

1993

148,999

19,700

161,206

19,500

7,563 8,267

7.2%

1994

11.1% 8.2%

1995

155,056

-3.8%

19,400

7,993

1996

149,069

20,000

7,453

- 6.7% 5 700

1983 1984 1985 1986 1987

17,200

1997

144.239

-3.9% -3.2%

18.300

7,882

1998*

141,963

-1.6%

17.400

8.159

1999*

148,206

4.4%

16,100

9,205

‘Proiected

78 CIJRNEL HOTEL

AND RESTAURANT

ADMINISTRATION

QUARTERLY

9.300 3.300

3.500 12.8%

the town of Arorangi. The village preserves and portrays the culture of the Polynesians of the Cook Islands in an understandable and enjoyable format. Visitors move from one location to another within the village to learn about the agriculture, history, crafts, entertainment, living conditions, fishing, and life in the Cook Islands. I think that it is an extraordinary collection of exhibits and is well worth the visit. Air Rarotonga is another business that has grown with the increase in tourism to the islands. Founded in 1978, Air Rarotonga operates flights daily to the islands in the southern group and has weekly flights to Manihiki and Penrhyn in the northern group. The company was operating three 14passenger planes until July 2000, when it added a new 34passenger plane to its fleet, particularly to handle the long flights to Manihiki and Penrhyn. The ne\v equipment enables the airline to provide better, baster service for passengers and cargo, especially to the northern islands. The company has NZ$7 million in annual sales. The company engages in joint-marketing programs with the United States, New Zealand, Australia, and with various cities in Europe. Interestingly, the government does not permit the airline to fly on Sunday. This prevents tourists from flying to and from Aitutaki (the only significant destination in the islands other than Rarotonga) for just a weekend visit. GDP. Concurrent with the increase of tourism in the Cook Islands has been the increase in the gross domestic product. In IWO New Zealand dollars, the GDP was just over $77 million in 1982, well over $107 million in IWO, and a projected $122 million in 1999 (see Exhibit 5 for figures in current NZ dollars, worth about half a U.S. dollar). Income levels have also illcreased along with tourism and economic growth. For 1996 (the last

year available) mea11 income \vas just under NZ$l3,000 and the median was nearly NZflO,OOO.“’ The Cook Islands government assesses a value-added tax (VAT) ot 12..i percent on all goods and scrvice7 sold in the islands. Tourism has certainly contributed to the volunie of taxes collected, m,liich umountcd to more than $2X million in 1999. The increasing VAT collection has been a major component of the government’s budget in recent years. ‘_

Tourism:

Mostly a Favorable

Verdict

Based on my omx observations of the situation (including a comparison of then arid now). I bclicvc tourism has been good for the Cook Islands. Most of the islanders \vith whom I spoke 011 Rnrotonga and Aitutaki agreed with that messnlent. Business and jobs have been created and some residents’ inconle levels have increased beyond inflation rates. As usually occul-s with a tourictbased economy, ho\vever, certain specific tourisin issues concern the Cook Islanders \x:ith dehorn I spoke. As I esplain nest, these issues are tourism’s effect on education, the environment, infi-astructure, goverilnlent, and culture, as ~~11 as the prospect of legalized gnmblin~.

Education Tourism clearly has supported education in the Cook Islands. The VAT has helped make more funds available for education, and the dollars spent by tourists help families and students pay for education expenses. Moreover, interacting \vith intern,ltional tourists gives youil~ people esposure to the world and to other cultures. The increase in tourism has brought about rff-orts to incorporate

tourism training into the school curriculum. In 19X-l the World Tourism Organization md the Cook Islands government brought in consultants \\-ho helped set up ~1 hospitality and tourism school. With 13 staff members at its peak, the school taught classes ,tbout food and beverage. housekeeping. front-office operations, and supervisory skills. During the government downturn of 1996, 110\vwe1-. the staffwas cut to four, and the school closed altoc&icr in 100X. Today, a single staff c’, member operates the program lvithin the Ministrv of Tourism. Classes are held ol;ly when demand warrants, and students and businesses must pay for the classes. Tereora College texhes cl,lsses roughl!. equivalent to a U.S. high school and the first year of college. While this school does teach some tourism cowse, felv students finish the college-ecluiv3lerit level fix- redsons I explain next. Tourism has created challenges for the education system. Many voung people leave the island for ‘Niw Zt&iid \\,ithout completing their education. Others succuiiib to peer plwsure and choose to \vork in tourism jobs rather than go to school. Those tremgers xvork late at night providing entertainment for tourists (or filling other tourisn-based jobs). but the). are then often too tired to go to classes or to do \vell. Some parents

encowagt?

such

e1llployllent

their children m+ll bring hoine nioney for- the family. Some youths fi-om the outer islands come to l
that

April 2001

l

79

Environment It gxs

without

s+Gtig that tlic .tc-

tual land drtf;t of k1rotong‘l

Today, the key challenges

to

the Cook Islands’

tourism

industry are: finding

enough

fresh water, establishing recycling

programs,

safely disposing

and

of sewage

and solid waste.


the Cook Islands is tninusculc (?-IO sq. km.). The islmds ofF~.r CY~OLIL$ land and water to support cl tt,lti\re population and ,I controlled lc~vet of tourism. One of the greatest ~x)tlterns about tourism is its effect ott the environment (e.g., sew,tge dnd solid-waste dispmtl) and prrssurc on natural resourcc5 (c.g., fresh \v,ttt’t and lagoon and cor,tl conditions). The island of ILtrotottg,t I~,Is running water throughout. I about 1,000 liter\ of w,ttct- per d,ty. ” The prime ntinister believes that the tiiasitiiutii fr,tsiblc~ iiutiibc~t- of tout-ists peg- year is ,tbout 100.000. Water is not .I sure thing oit the southern islands, which drpcttd ott rainwater md \\~lls. The islands cspericttcc drought conditions from time to time.” .tltd I cm rrtiic~mbctctidut-itig d ttiontli-tong drought oti the iclmd of Aitutaki in I OOII. (IOF coiiut juice and purchased liquids \vc’rc tl1c ontv avnil‘lL~le lb1llkS. sustainitig d gtmving iiutiibc~r of tourists tnay rcquit-c building dddttiott;it storage tanks .itid drilling .tdditioti,il \\~lts. This must he done in cottjunction \vitli tnotiitoritig tlic. watc‘t table, ho\Vever. No islmd 11,~

Infrastructure

Ictobct 3000. Thus, electric,11 \uppl), .utci distribution x-e ,tdc’clu,itc’ for cut-t-t‘ttt demtnd. Ett~ctt-tctt); telephone, rt~tttiitig \\‘dtc‘t-, rodds. tele\isiott. .iiid radio set-vices re,icli the entire Ii\,,tblc part of I
The Question

of Legalized

ItTTl

Gambling

Ill the late 19x0s the ~o\w-lIllletlt heipii to build d I SO-t-oolii tiotct

80

IlllKNFl ,JJ IHOTELANDRESTAURANTADMINISTRATIONQUARTERL‘,

that was to be managed by Sheraton. The arrangement failed, and the chell of the hotel has been vacant ever since. Several efforts to revive this property fell through, until in X00 the government and Hilton International agreed to finish and eventually open the property. However, Hilton wants to have a casino in the hotel, thereby bringing legalized gambling to the Cook Islands. This is a controversial step, and I note my own opposition to ganbling for personal and religious reasons. My personal observation is that the Cook Islands do not need gambling to attract tourists. Many in government and business Lvould like to see a casino open in the belief that it will bring more tourists and revenue to the islands. Mv sense is, however, that the majoiity of the residents do not want a casino, based on my conversations with islanders and others’ espressions in a variety of articles in the COCJ~ 1s~md.s I%~LY. The Religious Advisory Council is opposed to legalized gambling, as are the majoritv, of the Hicrh Chiefs.“’ A consideyable objection to gaming comes with ;he realization that islanders as well as tourists will patronize a casino. According to kon Crocombe, professor ellieritus at the University of the South Pacific, \vho lives on Rarotonga, studies show that Pacific Islanders patronize legalized gambling establishments in New Zealand at a much higher rate than do other groups. Thus, the concern arises that even if the casino is marketed only to tourists, it ~vill nevertheless become too great a temptation for many residents. On one hand, Ewm

Smith, managing director of Air Rarotonga, believes the decision to permit the casino should be based strictly on economics. In contrast, the former prime minister, Sir Tom Davis, opposes the casino on the ground that the “tourists only” concept will not work, that crime will increase, and that the casino will attract those with other problems to solve. I could not find a record of an official position by (nor could I elicit a definitive comnient from) the current prime minister or the chief executive of the tourism corporation on this matter.

The Leakage

Problem

One of the government’s main conterns is keeping tourism-generated dollars in the Cook Islands. The government wants to see more local ownership and less foreign ownership of businesses. The government believes that as local ownership grows, Cook Islanders will return from New Zealand to the islands.” The law prohibits foreign ownership of the land, but permits leases of LIP to 60 years. Land leases can become the basis for a profitable relationship between local residents (who own the land) and business owners and operators (who lease it). Local residenis do own many of the smaller businesses and yonx of the larger ventures. For example, the general manager of the Pacific Resort is a part owner, and the resort is 95-percent locally ommed. A local family that has been in the islands for generations owns one of the largest pearl farms in the islands. Finally, while the proposed new resort on Aitutaki is a foreign investment, it will provide immediate compensation (i.e., income) to the local lnndommers. Professor Crocombe suggests that too much of the wealth created by tourism is concentrated in the hands

foreign organizations. This wealth needs to filter down into the hands of more Cook Islanders. Local ownership will help accomplish this.

Retrospective

and Prospects

Has tourism been good for the Cook Islands? On balance, I believe it has, but it has also brought about a change in the lifestyle of local residents. Tourism certainly is the source of more foreign exchange and has improved the standard of living-although not all have shared in that wealth. Tourism has neither produced enough money for a high quality health and education system nor distributed enough of the tourisnl dollars to Cook fslanders. The islands’ communication, transportation, and other infrastructure components have been improved, but I believe that they cannot support a large increase in tourism. If the goal is as many as 100,000 tourists per year, then a greater portion of those tourists will need to spend time on islands other than Rarotonga. (Aitutaki is now the only real tourist destination other than Rarotonga.) Regular, frequent air access to other outer islands is a key factor. The residents on the outer islands will need to decide just how far they want to go to attract tourists. Tourists and their money will clearly change the quiet, laid-back lifestyle on the outer islands. Tourism does not seem to be much of a prospect for the northern islands. Additionally, the change from an agrarian to tourism economy has brought an increase of social problems to the islands. There has been an increase in petty crime. drug abuse, and alcohol-related offenses. Much has changed in the Cook Islands since I lived there in the 1960s. What has not changed is the incredible beauty of these remote

April 2001

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