Port Vila business owner faces 48% decline amid Air Vanuatu crisis

July 10, 2024 12:10 am | Posted in Business News | Share now TwitterFacebook

By Sabrina Tabi.

A Port Vila business owner, who wished to remain anonymous, has revealed that his business is down by 48% compared to last year.

The businessman, who has been in Vanuatu since independence, told the Vanuatu Daily Post that he employs over 40 staff members, all of whom he treats as family.

Despite considering layoffs due to financial strain, he is reluctant to do so, understanding the crucial support his employees provide for their families.

“I care deeply for my staff. If I am successful, I want them to be successful,” he said.

The business owner attributes the significant downturn to the ongoing issues with Air Vanuatu, which went into liquidation mid-year, disrupting international flights and severely impacting the tourism sector.

He noted that while past challenges such as tropical cyclones and the COVID-19 pandemic have been tough, the airline crisis could have a long-lasting impact if not resolved quickly.

He acknowledged the recent reconnection of flights between Vanuatu and Brisbane but emphasised the need for flights from Sydney and Melbourne, the main tourist markets in Australia.

Despite plans for Queensland and Northern Territory Aerial Services (QANTAS) and Jetstar to reconnect flights later this year, there is uncertainty among ticket holders about whether these flights will proceed as scheduled.

One ticket holder revealed that despite the International Air Services Commission (IASC) of Australia approving the flights, they received an email from Jetstar stating that their ticket is pending regulatory approval from the Vanuatu government.

This has raised further questions about the certainty of these reconnections, and the detrimental effect it will have on the tourism sector, particularly businesses in the country should they not proceed as planned.