Trade statistics for New Zealand’s goods exports to Fiji for the 12 months ending June 2013 have just been released and confirm continued significant growth in the import to Fiji of yachts and vessels out of New Zealand.
For the third year running NZ yachts and other vessels is still the largest export item to Fiji, with a value of NZ$49.6 million for the June 2013 year – an increase in value of more than 54% on 2012.
The previous five year trend can be seen in the graph and table below. All values are in New Zealand Dollars.
Value of Exports NZ to Fiji – Yachts
|
Value of Exports (NZD) |
|
|
2009 |
$4,745,000 |
|
2010 |
$2,811,000 |
|
2011 |
$24,651,000 |
|
2012 |
$32,076,000 |
|
2013 |
$49,604,000 |
This is very encouraging news for the maritime sector in Fiji which is concurrently showing significant growth in the small yacht and Super Yacht arrivals which is a seasonal market for Fiji. With an increase in locally owned vessels to Fiji opportunities arise for further investment and development of the industry as a whole.
“The industry standard is that a boat owner will spend 10% of the value of the vessel per annum in fuel, repairs and maintenance, berthing, crew etc. If you take this into account with a compounding rate the industry is seeing a shift from a total annual expenditure within the local pleasure boat industry of around FJ$475,000 in 2009 which has increased to FJ$17,725,000 in 2013. This is new expenditure over this period and does not take into account the vessels in Fiji prior to 2009 nor vessels imported from other countries nor vessels constructed in Fiji.”
“The incredible growth seen over the last three years is a direct result of the Governments commitment to building the maritime sector by reducing the duty rate on imported vessels from 32% to a concessionary rate of 5% in 2010. This is a fantastic example of forward thinking and understanding how the industry can drive growth.”
“Not only is this growth pumping significant money into local businesses, the Government has also seen growth in the collection of duty. For example, in 2010 the duty rate of 32% generated FJ$899,520 in duty payments. In 2013 at 5% the direct duty revenue for FRCA increased to FJ$3,851,000 from NZ imported vessels alone. Many of these vessels will have been imported for private use and therefore VAT income was also generated over and above these figures.”
“With more vessels in Fiji we are able to develop the skill set available locally to service these vessels. This has the benefit to local boat owners, both private and commercial, and makes Fiji more attractive as a destination to foreign visiting yachts. I personally believe that the maritime industry is still in its infancy stage and am anticipating significant growth and employment opportunities moving forward.”
Post Note
Fiji remains NZ’s largest trading partner in the Pacific, with total two way trade in goods totalling NZ$453.2 million (exports of NZ$393 million and imports of NZ$60.2 million). This makes Fiji, NZ’s 28th largest trading partner (by comparison, Mexico is 27th, Belgium is 26th).
NZ exported more to Fiji then to Mexico, with exports to the latter totaling NZ$313.6 million in the June 2013 year. The value of NZ exports to Fiji increased 15.7%. And NZ still exports more to Fiji than to markets like South Africa, Russia or Brazil.
More information
For more information please contact Nigel Skeggs here.
Nigel Skeggs
Managing Director
Port Denarau Marina
Vice-President
Fiji New Zealand Business Council