A World Bank report recommends that to fully leverage growth opportunities in the tourism sector, the Solomon Islands needs to invest in tourism infrastructure and improve governance.
“It is critical to develop the necessary transport infrastructure, accommodation, and other tourism facilities, without infringing on land rights and environmental sustainability,” the report states.
“Doing so could generate a 1 percent GDP growth dividend in the medium term.”
The report, titled Solomon Islands: Country Economic Memorandum – Unlocking New Sources of Economic Growth, examines key barriers to sustainable economic development, focusing on challenges related to economic geography and private sector development.
Conducted between February 2023 and March 2024, the Country Economic Memorandum (CEM) analyzes constraints in high-growth sectors, including agriculture, fisheries, tourism, and labor mobility. It provides actionable policy recommendations to address these challenges and unlock new growth opportunities.
The report highlights the importance of facilitating investment in tourism through incentives and partnerships between the government, local communities, and the private sector.
It states, “A designated focal point for investor assistance would strengthen linkages and accountability within and across agencies.”
Solomon Islands Minister of Culture and Tourism, Choylin Yim Douglas, agreed with the findings.
In her maiden speech in Parliament last week, Minister Douglas emphasized the need for more hotels and resorts, noting that the country currently has only 2,055 rooms and 3,529 beds available.
“There is an urgent need to invest in new hotels and resorts,” she said. “Moreover, many of our existing accommodations require upgrades to meet international standards.”
Minister Douglas stressed that improving the quality and quantity of accommodations is essential to making Solomon Islands more competitive in the global tourism market, adding that this will be a priority over the next five years.
“The ministry is committed to working with investors and stakeholders to ensure that our tourism infrastructure meets the demands of the growing industry,” she said.
The World Bank report also emphasizes the need for tourism satellite accounts and studies to better understand global and local travel trends, which would help guide informed investment decisions in the sector.
While Solomon Islands possesses significant historical, natural, and cultural assets, the report suggests the country focus on developing niche tourism markets.
“Solomon Islands has the natural capital to support mass tourism, but global competition in this area is reducing profit margins,” the report notes. “Fortunately, alternative tourism segments exist that are better suited to the country. For example, tourism targeting historical diving enthusiasts offers differentiation from mass-market segments, enabling destinations to capture more value.”
These niche segments, according to the report, are also less sensitive to connectivity and safety concerns and typically involve smaller accommodation providers that are less vertically integrated than large-scale tourism operations.
Minister Douglas added that the average stay for visitors is currently 10.9 days. The goal is to extend this by offering more activities that appeal to different interests, such as cultural and historical tours, adventure trips, and eco-friendly experiences—all of which are abundant in the Solomon Islands.
The ministry has an ambitious target of reaching 100,000 visitors annually by 2035. According to the latest survey conducted from July 2022 to July 2023, each visitor spent an average of $18,000 during their stay.
“With this new data, we aim to create a substantial impact on our economy,” said Minister Douglas.
“If we achieve our target of 100,000 visitors by 2035, tourism can become a billion-dollar industry for the Solomon Islands.”
“One of our key strategies to attract more visitors is to create more activities and attractions that engage and excite our guests, offering diverse and unique experiences,” she added.
“This will encourage visitors to extend their stay and explore more of what our beautiful islands have to offer.”
By EDDIE OSIFELO
Solomon Star, Honiara
