Tourism is the primary driver of the economy of Norfolk Island, a small island territory located in the South Pacific Ocean. According to estimates, tourism contributes up to 90% of the island’s economy, providing jobs and benefits for all residents through all seasons. The island’s economy is heavily reliant on tourism, and the downturn in the number of tourists travelling to Norfolk has serious implications for the economy.
The island’s tourism industry is made up of accommodation providers, tour providers, and retailers, with the majority of businesses in the commercial sector being involved in tourism. The tourism sector has been identified as the major contributor to Norfolk Island’s economy, providing employment opportunities for the local population.
The economic impact of tourism on Norfolk Island has been significant, with the industry providing a range of benefits to the local economy. Tourism has created employment opportunities, particularly in the hospitality and service sectors, and has contributed to the development of infrastructure and services on the island. The industry has also generated revenue for the government, which has been used to fund public services and infrastructure development.
However—the island’s reliance on tourism has also created challenges, particularly in terms of the sustainability of the industry. The island’s small size and limited resources make it vulnerable to external shocks, such as changes in global travel patterns or natural disasters. The island’s tourism industry has also been impacted by the COVID-19 —with travel restrictions and border closures leading to a decline in visitor numbers.
Tourism is the primary driver of the economy of Norfolk Island, providing employment opportunities and generating revenue for the government. However, the island’s reliance on tourism has created challenges, particularly in terms of the sustainability of the industry. The island must continue to develop and diversify its economy to reduce its reliance on tourism and build resilience against external shocks.