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The Asian side of the world - II

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Jean-François Sabouret

Part One. Regional dynamics and globalization

Tourism in the French Pacific collectivities: troubled waters

Jean-Christophe Gay

Texte intégral

1December 2012

  • 1 Gay, 2008.
  • 2 Poirine.

2At a time when the clouds are gathering over the French economy and there is increasing discussion of its loss of competitivity, the economies of her overseas territories have already been languishing for a long time. Their economic system is at the edge of the abyss, with 25% unemployment in the French overseas departments. The high cost of living is a source of social tensions, underscoring extreme socio-economic inequalities1. Demonstrations, blockades and general strikes occur one after another. The French Caribbean islands are even known in the American Anglophone world as the “strike islands”! The fire is smouldering, and the State has transformed itself into a firefighter, in keeping with what we modestly call “national solidarity.” We increasingly use the expression “greenhouse economy2” to evoke the economic problems of the overseas territories, a clever epithet to describe a model of development that is isolated, untenable and artificial, based on under-taxation, public transfers, protectionism and degradation of the trade balance. It is paradoxical that in the process of emancipation, New Caledonia is becoming more and more economically dependent on France. This situation explains why local debates focus on politics rather than economic aspects, which are fundamental for the viability of the new entity, independent of or associated with France, except that economics is a political argument: for the non-independentists, in proving that independence will be a catastrophe, and for the independentists, in benefitting from stipends from the State.

3At the heart of the problem lies the question of prices and salaries. On the one hand, there are the permanent agents of the State and local collectivities who benefit from “additional payments” as compared with Metropolitan France. The snag is that this “high cost of living bonus” does not apply to everyone. Thus, we acknowledge the high cost of living for some but not for others. Consequently, the overseas societies experience far more inequality than the Metropole. The other aspect of the problem is the question of prices. There is great opacity in setting them. What is certain is that the local elites of European or mixed origin are not interested in autonomous development because their prosperity depends on control of export and import flows by their commercial companies. Autonomous development would penalize them by reducing trade. Those with capital find industrial investments unattractive, preferring real estate, land or commerce.

  • 3 Gay, 2012

4These symptoms are related to a sickness called “the Dutch syndrome”, which is applied to economies that receive a sudden boon. It was called so because The Netherlands was one of the first states affected, after the discovery of natural gas. The sectors involved (export, tourism, etc.) see an increase in costs induced by the rise in prices due to increased revenues and internal demand. Tourism in overseas France is one of the main victims of this syndrome, because it cannot be protected (except by subsidies or tax relief). It is therefore the first to suffer from the reduction in its profits, provoked by rising costs and the impossibility of adjusting their prices to offset them. It is also a victim of another aspect of the Dutch syndrome: the high salaries in the State and territorial public sector tend to become the salary reference. The qualified workforce is attracted by the booming sectors, in which the rates of pay are higher.3

5The signs of bad health in the tourism industry in French Polynesia and New Caledonia – excluding Wallis and Futuna, a restricted destination where the number of tourists is not even measured – are numerous. First of all, these two destinations are those that have seen the least progress in numbers of visitors over the past 30 years. While the number of tourists multiplied more than three times in Fiji, the Northern Mariana Islands and Guam, it has progressed only slightly in the two French collectivities of the Pacific. For more than 10 years, the industry in New Caledonia has stagnated at around 100 000 tourists. In the Asia-Pacific zone, the numbers have increased annually by 6.7% since 2000, while it has decreased by more than 3% per year in French Polynesia (252 000 tourists in 2000, 162 000 in 2011). New Caledonia and French Polynesia have lost the market share in the competition between tropical destinations that attract tourists. The only satisfactory note is the spectacular progression in the number of cruise ship tourists in New Caledonia (21 000 in 1998, 237 000 in 2011), on ships from Australia offering short excursions.

6Another index of the difficulties facing the tourist sector is the decline in the number of foreign visitors. Hidden beneath the obvious stagnation in tourist numbers in New Caledonia is an alarming loss of competitiveness for this destination, translated by an increase in French visitors from the Metropole or French Oceania. Despite of its distance, Metropolitan France has become the principal source of tourists, and the number of Japanese tourists in particular has dropped considerably (35 000 in 1998, 18 000 in 2011). “Affinity tourism”, people coming to visit friends or family, has grown and accounts for the majority of Metropolitans, followed by Wallisians, Futunians and Tahitians, who choose non-commercial accommodation.

  • 4 Bachimon.
  • 5 Chauchat.

7The widespread failure of hotels in French Polynesia4 is also symptomatic of the tourism crisis in overseas France. In Tahiti, Moorea, Huahine and Bora Bora, hotel closures have accelerated, demonstrating the failure of, and the damage caused by, the policy of non-taxation chosen by successive governments in order to combat the competitive weakness of France overseas. Failing to confront the vicious circle of the high cost of living, investments in numerous sectors were partially exempted from taxation from 1986 (Pons law). In French Polynesia and New Caledonia, a local system was added to the national measures.5 Far from combatting the Dutch syndrome, the tax-exempt capital was diverted from real tourism investments and instead poured into real estate operations masquerading as hotel projects. As the withdrawal of tax-exempt status was not defined, private investors sought to sell off their property at the end of the obligatory period of exploitation (5–10 years). Thus, the fiscal tool, unable to compensate for these structural handicaps, went astray.

  • 6 Gay, 2009.

8French Polynesia and New Caledonia are among the most expensive destinations in the world. Accommodation, excursions and restaurants are poor value for money. Shopping is limited and expensive. Nightlife is almost non-existent, and few activities are available for tourists. The hospitality is often poor. Competing islands in the Pacific have a more up-to-date choice of hotels and quality entertainment for significantly less cost. Knowing the potential for tourism in New Caledonia and that the names “Tahiti” and “Bora Bora” are the universal materialization of the idea of paradise on Earth, the current waste of opportunity is clear6. How long will the South Seas have to compensate for the many flaws of French Polynesia, in order for it to be a dream destination worthy of marking an important moment, such as a wedding or a retirement?

9The conclusion is not that the only solution to developing tourism is independence. Hawaii, with its 7 million tourists per year, proves the contrary. But only bold structural reforms can reverse the situation. In order for this to happen, the relationship between France and its overseas territories must evolve. The statutory immobility of the overseas departments does not indicate any significant evolution in the short term. Autonomy for French Polynesia and New Caledonia would favour economic restructuring, but they have to want it. In French Polynesia, despite the seriousness of the situation, the local community is not ready to welcome hundreds of thousands of tourists. As for New Caledonia, nickel mining and public transfers ensure its prosperity for the time being.

Bibliographie

Bibliographical indications

Bachimon, Ph., « Les friches touristiques en Polynésie française. Révélateur d'une crise de la destination et forme de résistance au tourisme international », Via@, Varia, no 1, 2012, mis en ligne le 28.09.2012. URL : http://www.viatourismreview.net/Article9.php

Chauchat, M., Les Institutions en Nouvelle-Calédonie, CDP de Nouvelle-Calédonie, Nouméa, 2011.

Gay, J.-Ch., L’Outre-mer français. Un espace singulier, Paris, Belin, 2008.

Gay, J.-Ch., Les Cocotiers de la France. Tourismes en outre-mer, Paris, Belin, 2009.

Gay, J.-Ch., “Why is tourism doing poorly in Overseas France”, Annals of Tourism Research, no 4, 2012.

Poirine, B., Tahiti : une économie sous serre, Paris, L’Harmattan, 2011.

Notes

1 Gay, 2008.

2 Poirine.

3 Gay, 2012

4 Bachimon.

5 Chauchat.

6 Gay, 2009.

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