A resort owner in Vanuatu has welcomed news of more funds to support Covid-19 recovery in the Pacific.
Tourism in Vanuatu has been dealt a major blow by the pandemic. Photo: Supplied
InvestPacific will be the first private investment fund targeting only the Pacific, it is being set up by the New Zealand government, and was announced last week.
The fund is aimed at strengthening the region's investment environment, and promoting investment opportunities.
While details are limited at this stage, it is expected to attract almost $60 million - with the government already committing an initial $17m, and an additional $40m to come from private investment.
Greg Pechan owns The Havannah Vanuatu on Efate Island and said any fund set up to help Pacific Island countries bounce back from the impacts of the pandemic was good news.
"We certainly welcome any investment funds with those development goals.
"I think there's a fair bit of demand to travel to the Pacific islands after the pandemic is over and to kickstart businesses, and also to maybe fund the expansions of sustainable tourism products, so I think it's a great initiative."
Foreign Affairs Minister Nanaia Mahuta said the fund would provide "a unique, commercially sustainable programme that enables Pacific communities to realise their own goals and priorities, and improve the social and economic wellbeing."
Pechan said aid targeting the tourism sector would allow properties like his to prepare for a post-pandemic business environment and help with the expansion of resort facilities to handle the demand once tourism resumes.
"In Vanuatu traditionally the cost of utilities is very expensive here and the cost of setting up solar units are very high, the capital cost.
"So, to receive some sort of assistance through low interest loans, funds ... to be able to fund the capital costs of solar would be great once the borders reopen again."
He says it is also important that the fund attracts the right type of investors who will work in the best interest of the region.
"I'm sure there are funds there that could tap into those additional money from NZ and complement their current funds under management."