The Kingdom of Tonga has a small, open economy with a narrow export base. Private remittances from Tongan communities overseas and external development assistance totalled US$56m in 2001, compared with US$16m from domestic sales and exports of squash, the largest cash crop, and US$9m each from fisheries and tourism.

Tonga has a reasonable basic infrastructure and well-developed social services, particularly in education and health. In past years, national development objectives have given increased emphasis to liberalising the economy. Earnings from agriculture and primary industry remain volatile – the squash harvest for 2002 was down by nearly 50%, mainly from poor weather, while kava export earnings have fallen by 75% since 2001 following restrictions.

Tourism
The Tonga Visitors’ Bureau showed a 13% year-on-year increase in the number of visitors travelling by air to Tonga in the first six months of 2002.

European Union aid
The EU has approved an aid package worth US$4.9m to help boost employment opportunities, income and skill levels in the northern Tongan island of Vava’u. The first project will be the development of three key roads to expand tourism opportunities on the island.

Austrade’s Fiji office is
responsible for Tonga.
Telephone: +679 3382 825
Fax: +679 3382 805
Email: info@austrade.gov.au
Website: www.austrade.gov.au