Pacific Tourism Organisation’s First-Ever Business Confidence Index in Kiribati Unveils Local Businesses’ on Tourism Development

The Pacific Tourism Organisation’s Pacific Tourism Data Initiative (PTDI) completed its first-ever Business Confidence Index survey (BCI) in Kiribati, offering invaluable insights into local businesses’ views on tourism in the country.

Conducted between the 1^st and 31^st of October, the BCI gathered input from 21 Kiribati businesses, equivalent to 0.4 % of the total registered businesses. The survey was made available both online and through face-to-face interviews, allowing businesses to voice their opinions and share suggestions for shaping the future of tourism in Kiribati. The survey was provided in both English and I-Kiribati.

Following the recent Government elections in August, many of the businesses (31%) wanted to see more infrastructure development in the outer islands to foster business growth. Improved infrastructure such as ports, connectivity, and telecommunications were essential in pushing the visitors out from the main islands to the outer islands. 16% of the businesses pointed this out saying that while they were facing a continuous short supply of foreign visitors, the main islands were reaching their capacity limits with short-term business visitors filling the rooms on the main islands.

With limited resources, preserving and sustainably promoting the culture was viewed as crucial for attracting more visitors to Kiribati. Other notable opportunities included enhanced internet connectivity especially in the outer islands through Starlink (12%) and improved environmental awareness of the locals through an increase in community clean-up campaigns (six percent).

Although the survey ran for 4 weeks, the low response rate calls for more collaboration and cooperation between local stakeholders which SPTO and TAK will look to capitalise on in 2025 with the 2^nd round of the BCI. The low response rate resulted in the reported average annual turnover of only $ AUD5, 800. This amount is not reflective of the true average in Kiribati, especially with 5,463 registered businesses in Kiribati.

Overall, the businesses felt that they performed well in 2023 (average score of 4.5 out of 5), were currently performing well in 2024 (average score of 5 out of 5), and were confident that they would do well in 2025 (average score of 5 out of 5).

“We are excited about the release of this report. This completes all 3 PTDI surveys for Kiribati in 2024 and we are grateful to all who have taken the time to complete the survey. While the response rate is not what we expected, we will learn from this and improve our engagement with the businesses next year. It is good to see the business community rebound after COVID. We take note of the plight of the outer island businesses and will share these findings with the relevant bodies and see where we can work together to address the MSME’s issues” shared Tourism Authority of Kiribati Acting CEO, Reeti Onorio.

The PTDI is a transformative project that emphasizes the vital role of data in shaping the future of Pacific tourism. SPTO CEO Christopher Cocker highlighted the initiative’s focus on fostering sustainable growth while preserving the region’s cultural heritage. A key component of PTDI is the Digital Measurement and Benchmarking Dashboard, which establishes essential marketing and sustainable tourism indicators tailored to the Pacific.

“Data is the cornerstone of effective decision-making and planning,” said SPTO CEO Christopher Cocker. “The Business Confidence Index survey, one of three key surveys under PTDI, ensures tourism development aligns with the needs, values, and aspirations of our local business community by capturing their first-hand experiences and insights.”

Funded by the New Zealand Government, the PTDI covers 10 Pacific Island nations: Cook Islands, Niue, Papua New Guinea, Samoa, Solomon Islands, Vanuatu, Tonga, Kiribati, Timor-Leste, and Federated States of Micronesia (Yap). The initiative supports evidence-based planning and decision-making through the production of the bi-annual International Visitor Survey (IVS), annual Business Confidence Index (BCI), and Community Attitude Survey (CAS) reports. These reports offer invaluable insights into community awareness, perceptions, and attitudes toward tourism, ensuring a balanced and inclusive approach to tourism development.