Honiara - Economy

Economy

Honiara developed economically at a much faster rate than other parts of the Solomon Islands. During the 1960s and 1970s some 2/3 of the investment into economic development in the country went into developing the infrastructure of Honiara, despite the fact that at the time only some 5% of Solomon Islanders actually lived there. Like Tulagi, the town didn't grow substantially as a result of industrialization. As Trevor Sofield says, "The shops and businesses in these centers served the needs of the government officials and expatriate businessmen, planters and traders. Honiara, like many other ex-colonial cities, still reflects the political, economic and cultural structure of its former metropolitan mentor much more than it does the national traits of Solomon Islands society.

Honiara is the Solomon Islands' springboard for tourism activities. The country's tourist office, the Solomon Islands Visitors Bureau, is located on Honiara's main thoroughfare, Mendana Avenue. Situated between the Yacht Club and the popular Solomon Kitano Mendana Hotel, its officers provide tourist information and can radio ahead to announce visitors' arrivals to guest houses in the remoter areas. Honiara contains several banks including the Westpac Bank, the ANZ Bank and the National Bank. Honiara has a harbour from which ferries depart to the various provinces. The violence which has plagued Honiara and the islands since the late 1990s has a devastating impact upon the economy due to the fact that virtually all tourist organizations around the world specifically warned tourists wishing to visit the islands to stay away from it, especially in 2002 and 2003 at the peak of the troubles. In 1998 the country earned around $13 million from tourism and just $629,000 in 1999, equating to an average spend per visit of only US$254 (about US$35/day). In 1999, tourism in the city and nation accounted for just 4.38% of the total GDP.