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Citation Information

Type Report
Title Vanuatu Country Assessment: Service Sector Potential and Challenges
URL http://www.andreagiacomelli.org/Pubblicazioni/Andrea Giacomelli - Vanuatu Service Sector Potential​and Challenges.pdf
Vanuatu is classified as a Least Developed Country (LDC), mostly due to its high vulnerability to
natural shocks. Despite this, Vanuatu has managed to achieve relatively good levels of economic
development, and a per-capita Gross Domestic Product (GDP) of around 3,200 USD in 2013. With a
population of 258,301 in 2014, 76% of which living in rural areas, Vanuatu can still be defined as an
agricultural society. Looking at Vanuatu from a different perspective, a services society emerges.
Services contribute to around 69% of GDP and provide decent employment opportunities to between
29% and 45% of the local population.
The crucial role of services is also evident by looking at trade statistics, where the increasing deficit in
merchandise trade over the last decade was fully counterbalanced by the growing surplus in the
services account- 80% of which was due to exports of tourism services.
Within the services sector, “Information and communication”, “Transport” and “Retail trade”
recorded the best performances during the last decade. The performance of the last two services, as
well as of “Accommodation and food” services, is certainly affected by trends in tourism arrivals.
The above considerations justify the choice to focus this paper on Information and Communication
Technology (ICT) and tourism services. Temporary labor mobility was chosen as third focus sector,
given its growing importance for Vanuatu and the Pacific.

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