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Country Guide > Australia and South Pacific > Tonga | |
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Business Profile Economy Agriculture is the strongest part of Tonga's economy, producing coconuts, vanilla and pumpkins as cash crops, and a variety of fruit, vegetables and nuts for domestic consumption. The fishing industry was relatively underdeveloped and has been a focus of government plans to expand the economy. Industrial activity is mostly light and small-scale: textiles, handicrafts, brewing and the production of furniture and construction materials predominate. More recently, these have been joined by enterprises engaged in small manufacturing operations and food processing. The search for oil, which has been licensed to foreign consortia, continues offshore despite lack of success so far. Tonga's own energy requirements are met from renewable sources, principally wave and solar power. Most of the growth in the economy and the best immediate prospect for Tonga's economic future lie in tourism which has been expanded under a recently completed 10-year development programme. The industry is now worth $10 million annually to the Tongan economy. Nonetheless, the Government is constantly looking for other projects to diversify the island's economy. A further vital source of revenue is remittances from the many thousands of Tongans working abroad, mainly in New Zealand and Australia. Current annual GDP growth is around 3 per cent but inflation is a staggering 10.3 per cent. Tonga is a member of the South Pacific Forum and the South Pacific Commission. A regional free-trade accord, known as the Pacific Island Countries Trade Agreement, was signed among a group of Pacific governments in 2002. Australia, New Zealand, the USA, Fiji and Japan are Tonga's main trading partners. Some UK exports appear in Tonga as re-exported products from Australia and New Zealand. Business Shirts and ties will suffice for business visits. English is widely spoken followed by French. Office hours: Mon-Fri 0830-1630. Commercial Information The following organisations can offer advice: Ministry of Labour, Commerce and Industries, PO Box 110, Nuku'alofa (tel: 23688; fax: 23887; e-mail: Tongatrade@candw.to); or Tonga Chamber of Commerce and Industry, Taufa'ahau Road, PO Box 1704, Nuku'alofa (tel: 25168; fax: 26039; e-mail: chamber@kalianet.to). Conferences/Conventions For advice, contact the Tonga Visitors' Bureau (see Contact Addresses section). |