Vanuatu is one of the fastest growing destinations in the Pacific. With nearly 50 percent of GDP generated by tourism, it is an essential sector. Not surprisingly, it is attracting investment. This brief summarizes some highlights for investors and operators.

1. DESTINATION
INVESTMENT BRIEF:
VANUATU
WHY VANUATU?
Vanuatu has geographic and cultural attractions that appeal to
growing numbers of visitors. Infrastructure, such as roads,
wharves and airports are improving along with product
development offers and availability of local skilled labor.
Government policy is guided by their Vision 2030 Framework and
boosted by implementation of the Vanuatu Strategic Tourism
Action Plan (VSTAP) 2013-2018.
Geography Unique Selling
Propositions
Key Product &
Experience Offers
 Population 270,402
 1,200 miles NE of
Brisbane and 600
miles west of Fiji
 83 islands
 Wide array of
cultural and natural
attractions
 French cuisine
 Close to Australia
and New Zealand
 White and black
sand beaches
 Strong traditional
culture
 Accessible active
volcanoes
 Shipwreck diving
 Pristine coral reefs
 Range of
accommodation
 Great for soft
adventure and
unique experiences
 Interesting culture
Tourism is one of the country’s most important growth sectors,
comprising nearly 50 percent of GDP. Vanuatu has much to offer
visitors - a unique colonial history, attractive beaches, many water
and land-based adventures, as well as activities related to its
cultural diversity of over 100 distinct languages. The sector
consists of cruises which account for the largest number of visitors
and air visitors. The latter is recovering following the devastating
impact of Cyclone Pam in March 2015. In 2016, there were
341,599 visitors to Vanuatu, of which 95,117 came by air and
256,482 by sea.
Photo Source: Vanuatu Tourism
This Brief provides a quick
guide to Vanuatu’s tourism
investment climate. It is
extracted from work
conducted on Pacific
tourism over the past year
and a half for the Asian
Development Bank by
international destination
development experts, Scott
Wayne and Dain Simpson.
More in-depth information
can be obtained by
contacting them via the
details below.
Port Vila, Vanuatu
Ranks 4/140 in the Happy Planet Index of the New Economic Foundation

2. VANUATU STRATEGIC TOURISM ACTION PLAN (VSTAP)
VSTAP has been the country’s roadmap for
tourism development. The New Zealand MFAT, has
helped to develop and implement it with the
Government. VSTAP is helping to realize tourism
specific policy recommendations such as:
 Via TVET, boosting tourism training activities
reserved for ni-Vanuatu;
 Drafting a zoning policy;
 Drafting a traditional knowledge, cultural and
biodiversity policy;
 Drafting a cruise ship policy;
 Negotiating new air connections, notably in Asia;
 Creating a comprehensive tourism data set;
 Improving urban tourism, such as waterfront
development, environmental education, and
improved linkages to agriculture.
Other development partners such as DFAT, the World
Bank, IFC, JICA, World Trade Organization, Chinese
Foreign Aid, and Millennium Challenge Corporation have
also provided critical support.
OPPORTUNITIES GOVERNMENT SUPPORT
Gaps and thus investment opportunities remain
especially for the following:
 Foreshore and wharf development -- waterfront
landscaping, retail and park development in Luganville
and related improvements at other sites.
 Cruise destination and product development on
Tanna.
 Secondary Airport improvements at several
destinations.
 Expansion of vocational, trades and cruise crew training.
Multiple resort development opportunities.
The growth trajectory of this sector over the years has been promising
and is projected to continue to grow in the years ahead. This is very
much linked to the unique natural attractions, friendly people and
accessible volcanoes and cultural attractions that is endemic only to the
island country. Simeon Athy, Governor, Reserve Bank Of Vanuatu.
Interview with world investment news, 2/28/17
 In November 2017, Government launched a “One
Stop Shop” for expediting foreign investment and
business operations in the country.
 No income or company tax for residents
 No capital gains tax
 No estate duties
 No foreign exchange controls
 Exemption on imports duty for tourism
investments
 No restrictions on repatriation of funds
 29/190 “Doing Business” rank on getting
credit
 [Note: In 2017, international concerns about
Vanuatu as a tax-free, off-shore banking haven
were prompting a shift towards tighter controls.]
SW Associates and DSA can provide full analysis of the investment climate for Vanuatu and other countries to assist
investors and businesses with conducting due diligence and feasibility studies. Contact them for more information.
SW Associates, LLC
Telephone: +1-202-463-7394
Email: scottwayne@gmail.com
Website: sw-associates.net
DSA Tourism
Telephone: +61-416 025 274
Email: dain.simpson@gmail.com