ABSTRACT
Aviation and tourism have become integral to modern world commerce and they are also assuming increasing importance in the economies of island nations in the South Pacific. The majority of countries and territories in the region are small island states, spread over a large area of the vast Pacific Ocean, remote from the main metropolitan centres and are characterised by small populations. Opportunities for economic growth tend to be limited, reflecting a narrow base, small size of the domestic markets and high transport costs to external markets. Tourism is the main economic sector throughout the region, highlighting the significance of regional air transportation. This chapter explores historical developments in the aviation and tourism markets of the South Pacific Region, followed by a discussion of current trends, major policy issues and the way forward.
