Tuesday, May 27, 2025
The Pacific Tourism Organisation (SPTO), in partnership with Tourism Solomons and the Solomon Islands Chamber of Commerce and Industry (SICCI), has unveiled the 2024 Solomon Islands Business Confidence Index (BCI) Report. This comprehensive survey captures the perspectives of the Solomon Islands’ private sector within the tourism industry, delivering critical insights into business confidence, operational challenges, and opportunities for sustainable growth.
The BCI report forms part of the broader Pacific Tourism Data Initiative (PTDI), a regional effort funded by the New Zealand Government to provide timely tourism data and analytics across Pacific Island nations. Solomon Islands is among ten countries participating, alongside the Cook Islands, Niue, Papua New Guinea, Samoa, Vanuatu, Tonga, Kiribati, Timor Leste, and the Federated States of Micronesia (Yap). The PTDI generates data through bi-annual International Visitor Surveys (IVS), annual Business Confidence Indexes, and Community Attitude Surveys (CAS) to guide tourism strategies regionally.
Survey Methodology and Participant Profile
Conducted between September 3 and December 31, 2024, the BCI survey received 84 responses, with 78 valid submissions analyzed. The participants represent a cross-section of the Solomon Islands’ tourism-related businesses, including accommodation providers, tour operators, retail outlets, and other service providers.
- Respondent Demographics: 87% of respondents were Solomon Islands citizens.
- Geographic Distribution: 46% of businesses surveyed operate in the capital Honiara, while 54% serve other provinces, reflecting widespread participation across the country.
- Business Types: Accommodation providers constitute 48% of respondents, followed by visitor activity and tour operators at 23%, and retail outlets at 11%.
The average annual turnover among these businesses was SBD 634,444 (Solomon Islands dollars), with over half (51%) of total revenue derived directly from tourism activities, underscoring the sector’s economic significance.
Key Findings: Workforce, Economic, and Infrastructure Challenges
While nearly half of the businesses (46%) plan to expand their workforce in 2025, significant challenges impede growth:
- Workforce Development: 67% of respondents highlighted workforce development as a major challenge, with 33% pointing to a shortage of tourism expertise within local communities. This skills gap impacts service quality and the ability to meet growing visitor demands.
- Economic Constraints: 23% of businesses cited broader economic pressures, including inflation and limited access to finance, as obstacles to expanding operations.
- Governance and Policy Issues: 18% expressed concerns regarding regulatory frameworks, policy uncertainty, and governance that affect the tourism environment.
- Infrastructure and Accessibility: Another 18% emphasized inadequate infrastructure and accessibility, particularly in provincial areas, limiting tourism potential beyond Honiara.
Government Support and Strategic Focus Areas
Recognizing tourism’s critical role in national development, the Solomon Islands Government allocated SBD 46 million in the 2025 budget to the Ministry of Culture and Tourism. This funding aims to support industry development, capacity building, and investment to address key challenges and foster sustainable growth.
Survey respondents identified the following priority areas for long-term sustainability and resilience:
- Service Quality Enhancement (80%): Elevating hospitality standards and visitor experience remains a top priority to maintain competitiveness.
- Product Development (69%): Innovation and diversification of tourism offerings, including eco-tourism and cultural experiences, are essential for attracting new markets.
- Business Continuity and Strategic Planning (67%): Strengthening organizational resilience through better planning and risk management supports sustainability amid economic and environmental uncertainties.
Industry Leaders Highlight Importance of BCI Data
Tourism Solomons CEO Dagnal Dereveke emphasized the critical value of the BCI in informing policy and business decisions:
“The insights from the BCI report are instrumental in shaping priorities for government and private sector alike. Addressing workforce development, economic pressures, and infrastructure gaps, while leveraging government support, will be vital to building a resilient and thriving tourism industry.”
Dereveke stressed that fostering collaboration among stakeholders will ensure the sector not only recovers but also evolves to meet future challenges and opportunities.
Regional Context and SPTO’s Role
SPTO CEO Christopher Cocker noted that the Solomon Islands BCI findings contribute to a broader understanding of the Pacific tourism landscape:
“These insights provide invaluable guidance on the evolving needs and expectations of visitors, which are crucial for enhancing tourism products and experiences across the Pacific.”
He further highlighted the importance of sustainability, stating:
“Our goal is to support a tourism sector that benefits local communities, conserves natural and cultural assets, and generates lasting economic benefits, ensuring tourism remains a positive force for the region.”
The Pacific Tourism Data Initiative’s ongoing surveys and analyses underpin strategic decision-making to strengthen tourism’s economic, social, and environmental contributions across participating countries.
Tourism’s Economic Impact and Future Prospects
The 2024 BCI report underscores tourism’s pivotal role in the Solomon Islands’ economy, especially as the sector recovers from pandemic-related disruptions. With tourism contributing significantly to local employment and business revenue, efforts to enhance workforce skills, improve infrastructure, and develop new products are fundamental to sustaining growth.
Government commitment through budgetary allocations and supportive policies reflects a focus on leveraging tourism as a driver of national development. The private sector’s proactive approach toward expansion and innovation complements these efforts, fostering an ecosystem conducive to sustainable tourism.
Conclusion
The Solomon Islands Business Confidence Index 2024 provides a comprehensive snapshot of the tourism industry’s current status, challenges, and future directions. By highlighting workforce development, economic constraints, governance issues, and infrastructure gaps, the report offers actionable insights for stakeholders across government, business, and communities.
With continued collaboration and data-driven strategies, the Solomon Islands tourism sector is poised to enhance its contribution to economic growth, community well-being, and environmental sustainability. The findings affirm the importance of targeted investments and inclusive policies to build a resilient tourism industry capable of adapting to evolving market demands and global trends.
References
- Pacific Tourism Organisation (SPTO) Official Website
- Solomon Islands Government Ministry of Culture and Tourism Budget Reports
- Solomon Islands Chamber of Commerce and Industry (SICCI) Publications
- Pacific Tourism Data Initiative (PTDI) Reports
- Tourism Solomons Official Statements
