AVARUA, Rarotonga, Cook Islands (3 July 2001) -- Businesses enjoyed explosive growth in the first three months of the year, turning over 20 percent more than they did the year before. Turnover of all industries was $91.6 million for the March 2001 quarter. [Note: The Cook Islands currency is New Zealand dollars. The exchange rate on July 1, 2001 is NZ$ 1.00 = US$ 0.4067.] This compares with $75.5 million for the March 2000 quarter, according to provisional figures released by Statistics Cook Islands. Most of the growth came in the last 12 months from one well known source, industry--tourism. Wholesale and retail traders matched the "all industries" rate of about 20 percent. But it was the frontline tourism sector of "Restaurants and Bars" which enjoyed a mind-boggling 50 percent growth, closely followed by "Hotels and Motels" at 46 percent. That growth is good news for the government as well. The VAT take increased by 19 percent. After the ins and outs of VAT were deducted, government was left with $4.8 million, up from $4.0 million the same time last year. "Unlike previous growth spurts, the role of public administration (government salaries) has been negligible in the economic recovery," states a government report to last week's aid donor meeting. | | "Thus full credit is due to the private sector for having led the economic recovery." However, the recovery has meant little for nearly 1,500 Cook Islanders who left last year. Last Friday, government revealed it would include labor and wage questions in the December 2001 Census. "A major weakness of the official statistics in the Cook Islands is the absence of data series for wages and employment," said government in its report to the aid donors at the Consultative Group Meeting, CGM. "Analysis is thus seriously hampered..." Government says "technical assistance" is likely to be needed in this area. That's despite spending $250,000 on centennial celebrations this month, in the face of criticism about a continuing labor and migration crisis. Still to be seen from the March 2001 quarter is the rate of increase in imports. Growth may have been dizzying recently but imports are not far behind. In 1999, imports were at $78.6 million. In 2000, they grew 42 percent to $111.7 million. SOURCE - Cook Islands News |
