page_title: Vanuatu
section_title: Economy
hierarchical_section_title: Vanuatu / Economy
caption_attribution_description: English: Commercial agriculture, North Efate Русский: Стадо коров в северной части острова Эфате (Вануату)
context_page_description: Vanuatu, officially the Republic of Vanuatu, is an island country located in the South Pacific Ocean. The archipelago, which is of volcanic origin, is 1,750 kilometres east of northern Australia, 540 kilometres northeast of New Caledonia, east of New Guinea, southeast of the Solomon Islands, and west of Fiji.
  Vanuatu was first inhabited by Melanesian people. The first Europeans to visit the islands were a Spanish expedition led by Portuguese navigator Fernandes de Queirós, who arrived on the largest island, Espíritu Santo, in 1606. Queirós claimed the archipelago for Spain, as part of the colonial Spanish East Indies, and named it La Austrialia del Espíritu Santo.
  In the 1880s, France and the United Kingdom claimed parts of the archipelago, and in 1906, they agreed on a framework for jointly managing the archipelago as the New Hebrides through an Anglo–French condominium. An independence movement arose in the 1970s, and the Republic of Vanuatu was founded in 1980. Since independence, the country has become a member of the United Nations, Commonwealth of Nations, Organisation internationale de la Francophonie and the Pacific Islands Forum.
context_section_description: The four mainstays of the economy are agriculture, tourism, offshore financial services, and raising cattle. Vanuatu sells citizenship for about $150,000, and its passports allow visa-free travel throughout Europe. With demand from the Chinese market booming, passport sales may now account for more than 30% of the country's revenue. There is substantial fishing activity, although this industry does not bring in much foreign exchange. Exports include copra, kava, beef, cocoa and timber; and imports include machinery and equipment, foodstuffs, and fuels. In contrast, mining activity is very low.
  Although manganese mining halted in 1978, there was an agreement in 2006 to export manganese already mined but not yet exported. The country has no known petroleum deposits. A small light-industry sector caters to the local market. Tax revenues come mainly from import duties and a 15% VAT on goods and services. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances between constituent islands and from main markets.
  Agriculture is used for consumption as well as for export. It provides a living for 65% of the population. In particular, production of copra and kava create substantial revenue. Many farmers have been abandoning cultivation of food crops, and use earnings from kava cultivation to buy food. Kava has also been used in ceremonial exchanges between clans and villages. Cocoa is also grown for foreign exchange.
  In 2007, the number of households engaged in fishing was 15,758, mainly for consumption (99%), and the average number of fishing trips was 3 per week. The tropical climate enables growing of a wide range of fruits and vegetables and spices, including banana, garlic, cabbage, peanuts, pineapples, sugarcane, taro, yams, watermelons, leaf spices, carrots, radishes, eggplants, vanilla (both green and cured), pepper, cucumber and many others. In 2007, the value (in terms of millions of vatu – the official currency of Vanuatu), for agricultural products, was estimated for different products: kava (341 million vatu), copra (195), cattle (135), crop gardens (93), cocoa (59), forestry (56), fishing (24) and coffee (12).
  In 2018, Vanuatu banned all use of plastic bags and plastic straws, with more plastic items scheduled to be banned in 2020.
  
  Tourism brings in much-needed foreign exchange. Vanuatu is widely recognised as one of the premier vacation destinations for scuba divers wishing to explore coral reefs of the South Pacific region. A further significant attraction to scuba divers is the wreck of the US ocean liner and converted troop carrier SS President Coolidge on Espiritu Santo island. Sunk during World War II, it is one of the largest shipwrecks in the world that is accessible for recreational diving. Tourism increased 17% from 2007 to 2008 to reach 196,134 arrivals, according to one estimate. The 2008 total is a sharp increase from 2000, in which there were only 57,000 visitors (of these, 37,000 were from Australia, 8,000 from New Zealand, 6,000 from New Caledonia, 3,000 from Europe, 1,000 from North America, 1,000 from Japan. Tourism has been promoted, in part, by Vanuatu being the site of several reality-TV shows. The ninth season of the reality TV series Survivor was filmed on Vanuatu, entitled Survivor: Vanuatu—Islands of Fire. Two years later, Australia's Celebrity Survivor was filmed at the same location used by the US version. In mid-2002, the government stepped up efforts to boost tourism.
  Financial services are an important part of the economy. Vanuatu is a tax haven that until 2008 did not release account information to other governments or law-enforcement agencies. International pressure, mainly from Australia, influenced the Vanuatu government to begin adhering to international norms to improve transparency. In Vanuatu, there is no income tax, withholding tax, capital gains tax, inheritance tax, or exchange control. Many international ship-management companies choose to flag their ships under the Vanuatu flag, because of th
caption: Commercial agriculture, North Efate
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