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Invest in the Kingdom of Tonga

Why Invest in the Kingdom of Tonga?

Tonga can offer much to investors, including attributes that cannot be found elsewhere in the South Pacific region.
 

  • An economy with strong potential

    • Developed financial sector and presence of international banks with no capital controls

    • Currently under-developed tourism sector with high potential, including in ecotourism

    • Emphasis placed on Private-Sector led economic growth
       

  • A strong human capital

    • Well-educated, friendly and welcoming English-speaking people

    • A unique cultural heritage
       

  • Attracting natural resources

    • Extremely rich soils and excellent growing climate

    • Varied marine life and marine culture
       

  • A strategic location

    • Good transportation and communication links to Australia, New Zealand, the United States and other South Pacific Countries

    • Location on the international dateline

Investment Opportunities

The Government of the Kingdom of Tonga welcomes Private Sector investment in all sectors of the economy, and believes there are areas of great comparative advantage for the Kingdom of Tonga. These include: tourism, agriculture, manufacture, shipping, healthcare and next generation technologies. Opportunities also exist in the construction industry and the Private Sector. The Government will encourage investment in the above areas to the fullest extent possible.

Tourism

The tourism sector has great future potential. Within the tourism industry and sustainable tourism along with drawing on the unique and largely untouched natural environment with a strong and authentic local culture, it is considered to be a significant opportunity. Traditional Tongan customs and culture provide a friendly welcome for visitors. Promoting tourism should help to create jobs in the Kingdom of Tonga as well as bring in revenue to Tonga-owned and joint-ventures activities. Investment in tourism can be targeted most crucially in the accommodation sector, in order to expand the number and improve dramatically the quality of accommodations available to tourists within the Kingdom of Tonga. Investment should also be solicited for tourism-related activities, including high-end restaurants, tour operators, and other activities that will encourage tourists to come and stay in the Kingdom of Tonga.

Fisheries and Marine Businesses

Fishing is a key contributor to the  Kingdom of Tongan economy. It is also an important source of income and food for a significant portion of the population. Commercial fishing and aquaculture are established industries that require support in both “hard” and “soft” infrastructures. In particular,investment is sought to assist in exporting. Furthermore, with an example of such possible investment a purpose-built export pack-house, located wharf-side along with room to expand as the industry grows. Other investment to expand the industry can be located in bottom fishery and commercial sport fishery, with perhaps an eye on expanding tourism-related fishing.

Agriculture

Agriculture remains the most important source of livelihood for many Tongan people. It contributes around one-quarter of GDP, and together with fish, constitutes almost all of the Kingdom of Tonga’s merchandise exports. The Kingdom of Tonga has land and a climate suitable for a wide array of agricultural, livestock and horticultural pursuits. The Kingdom of Tonga provides opportunities for potential investors. Particularly those that lead to agro-processing, export and provision of agricultural stores. Support services are also opportunities. Specific investment in the agricultural industry in the Kingdom of Tonga could be made in several areas. This would include grains (especially maize and soybeans) and livestock (poultry – including eggs – pork and beef). The industry believes that there are synergies to be had between the two, with grains driving a feed industry, which in turn would dramatically improve the viability, scale, and options of livestock. An objective of the Government and the industry would thus be for import substitution, essentially to attain self-sufficiency in these items grown in the Kingdom of Tonga. building on these investments, it is possible that the Kingdom of Tonga can bring in higher-level investments to support a premium beef industry.

Manufacturing

While acknowledging the constraints imposed by small market size, the Government is supportive of growing the Kingdom of Tonga’s manufacturing base. Current production includes furniture, food and beverages (bakery lines, soft drinks, and beer), fabrication using imported materials, manufacturing of construction materials, and small boat building. Paint is exported from the Kingdom of Tonga to a number of nearby Pacific Island markets.

Shipping

Investing in the shipping industry is being reported as one of the smartest decisions an investor can make. The rebounding economy is allowing people all over the world to join a global consumer base that promises to expand for years to come. The shipping industry is positioned to meet the challenges that go with the transport of consumer goods. 90-95% of market goods are shipped via the sea, and dry bulk vessels are at the heart of it.

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In the post-Covid-19 period supply and demand concerns have put pressure on top-and bottom-line performance. We as a consulate support shipping investment opportunities, as well as assisting in locating the right projects for our investors.

Next-Generation Technology

The Kingdom of Tonga is the ideal location for Next Generation Tech companies working on digitalization, AI, Blockchain and IoT to kick-start its business in the Pacific. The island enjoys a large pool of well-educated and highly skilled human talents. At the same time, the Kingdom is politically stable and has a strategic location. Specifically, it has good transportation and communication links to Australia, New Zealand, the United States and other South Pacific Countries, while its location is on the international dateline. 

Healthcare Sector

During a pandemic that has been ravaging many countries around the world, the Kingdom of Tonga has managed to keep itself COVID-19 free. While the early and strict measures taken by the Government are still being praised, there is yet significant importance to strengthen the overall health system in the face of both national and global health issues.

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We see FDIs as a vehicle to assist the communities and the Government in bridging the Kingdom with the outside world through investment in the health sector infrastructures.The Kingdom of Tonga has great prospects to enter the health & wellness tourism. Many countries are promoting themselves as health & wellness tourist destinations trying to get a percentage of this promising global market. Worldwide health & wellness tourism is a rapidly growing industry with around 20% growth each year, generating over €12 billion annually. More than 5 million patients around the world travel abroad for treatment every year.

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The Kingdom of Tonga offers very attractive and competitive opportunities for foreign investment strategic alliances in the health & wellness industry including the establishment of hospitals, rehabilitation centers and health & wellness holiday resorts.

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