Pacific Tourism Organisation Partners with Tonga Tourism for First Business Confidence Index Survey

The Pacific Tourism Organisation’s Pacific Tourism Data Initiative (PTDI) has marked a milestone with Tonga’s first-ever Business Confidence Index (BCI) survey. The survey delivered innovative insights into local business perspectives on the country’s tourism landscape.

Conducted between October 30 and December 13, 2024, the survey gathered 67 responses from Tonga Tourist Association members (TTA). Participants shared their opinions through an emailed link and PDF survey, providing vital input on challenges and opportunities in the tourism sector.

TTA President Siosaia Moehau praised the initiative: “This report is a significant achievement for Tonga’s tourism sector. I commend SPTO for leading this effort and thank our members for their valuable participation. Special appreciation goes to the Tourism Minister Dr. Viliami Latu and Ministry of Tourism CEO Viliami Takau for supporting TTA’s Private Desk within the Ministry — a first for Tonga — which played a key role in gathering these insights.”

Over half of the respondents (67%) were Tongans, 13% of non-Tongan respondents held permanent residency, and 10% were citizens. The majority (76%) operated businesses in Tongatapu, followed by 18% in Vava’u, 4% in Eua, and 1% in Ha’apai.  Key sectors represented included visitor activities and tours (37%), accommodation providers (34%), food and beverage operators (23%), and retail shops (5%).

Tongan businesses reported an average annual turnover of TOP137,, with 69% of their revenue stemming from tourism. However, respondents identified several hurdles, including limited Government engagement (30%), rising goods prices (18%), natural disasters (13%), and increased competition (13%).

Despite these challenges, optimism remains high. Businesses highlighted promising growth areas, such as developing year-round tourism activities (24%), expanding inventory (18%), boosting Government support (16%), and growing interest in wellness and responsible tourism (14%).

Staffing also emerged as a critical concern. While 20% of businesses retained pre-pandemic staffing levels, 88% planned to hire more employees. However, migration programs created a talent drain, with 38% citing worker migration, 32% noting skill loss, and 15% facing difficulty finding loyal and honest staff.

Reflecting on these findings, Mr Moehau remarked: “This report brings to light what the private sector has long experienced. We are fortunate to have the visionary leadership of Tourism CEO Viliami Takau and Tonga Tourism Authority Chairlady Mishka Tu’ifua, who champion collaboration between MOT, TTAB, and TTA. Together, we are working to elevate Tonga’s tourism industry and enhance its appeal to travelers worldwide.”

Confidence is soaring among businesses, with respondents rating their 2023 performance at an average of 4.5 out of 5. Expectations for 2024 and 2025 are even brighter, with a perfect 5 out of 5 score for current and future performance.

Tonga Tourism Ministry Chief Executive Officer Viliami Takau welcomed the report, “We are thrilled to release these valuable findings. My deepest thanks go to those who participated and SPTO for their commitment. We recognize the need for stronger Government-private sector collaboration and are grateful that this report highlights key areas.”

SPTO CEO Christopher Cocker emphasized the broader vision behind PTDI: “Data is king. It drives smart decision-making and strategic planning. The New Zealand government-funded PTDI plays a pivotal role in shaping sustainable Pacific tourism. Our Business Confidence Index survey is just one of the tools ensuring that tourism development reflects values, aspirations, and experiences.”

The Pacific Tourism Data Initiative funded by the NZ government encompasses 10 Pacific Island nations, including Tonga. It focuses on evidence-based planning and sustainable tourism development through initiatives like the bi-annual International Visitor Survey (IVS), annual Business Confidence Index (BCI), and Community Attitude Survey (CAS), providing crucial insights into tourism’s impact across the region.