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PACIFIC ISLANDS BUSINESS INDICATORS

Tuvalu
Exchange Rate: 1 $ Local currency = x $US
Currency

AUS$

Calendar Year 1996

0.78

Calendar Year 1997 (used in tables)

0.75

Q1 1998

0.67

% Change 1996 - Q1 1998

-14%

GENERAL

Land Area

26 km2

EEZ

900,000 km2

GDP

US$12 million (1996)

GNP per Capita

US$1,212 (1996)

Human Development Index

0.652 (1994)

LABOUR FORCE CONTEXT
Population (1,000s latest census) 1

10

Potential Labour Force, age 15-59

5.60

Unpaid/underemployed labour force (%) 2
male

64

female

82

Quality of Local Labour Force3
Adult literacy rate (%)

90

Enrolment rate secondary schools (%)

89

LABOUR FORCE CONDITIONS
Legislated minimum wage

-

Average Wage Rates ($per hour)4
Managerial

5.70

Supervisory

3.80

Skilled

2.60

Semi Skilled

1.40

Unskilled

1.10

Normal number of hours work per week

37.50

No. paid holidays per year

12

Employer Contributions (% wage bill)
Workers Superannuation Fund
compulsory?

Yes

rate (%)

5

Western Compensation Fund
compulsory?

Yes

rate (%)5

1

Electricity
connection fee

188

tariff per kilowat hour

0.26

Water & Sewage
water connection fee ($)

n/a

sewage connection fee

-

sewage rate

-

Telephone
installation fee ($)

38

line/equipment rental rate ($) per year

90

rate per local call ($)

0.08

long distance rates ($) per minute
Japan (Tokyo)

3.00

USA (Los Angeles)

3.00

United Kingdom (London)

3.00

Australia (Sydney)

1.10

New Zealand (Auckland)

1.90

Singapore

3.00

Neighbouring Forum Island countries
Tonga
Samoa
Fiji

1.50

Papua New Guinea
Vanuatu
Marshall Islands

1.88

Tuvalu
Kiribati

1.88

Federated States of Micronesia
Solomon Islands
Cook Islands
Nauru
Palau
Total Cost 1 year of service 1

3,020

Internet/E-mail
connection fee

not

rental rate per year

available

no. free hours per month included in rental
rate per additional hour use
Total cost 1 year of service2
Sea Freight (cif) per cubic metre 1
Japan (Tokyo)

105

USA (Los Angeles)

146

United Kingdom (London)
Australia (Sydney)

71

New Zealand (Auckland)

64

Singapore

117

Neighbouring Forum Island Countries
Tonga

68

Samoa

68

Fiji

44

Marshall Islands
Papua New Guinea
Cook Islands
Solomon Islands
Vanuatu
Palau
Kiribati
Federated States of Micronesia
Air Freight (cif) per kilogram
Japan (Tokyo)

8.90

USA (Los Angeles)

8.40

United Kingdom (London)

14.20

Australia (Sydney)

5.20

New Zealand (Auckland)

4.60

Singapore

8.90

Neighbouring Forum Island Countries
Tonga

3.90

Samoa

3.60

Fiji

2.40

Marshall Islands
Kiribati
Federated States of Micronesia
Papua New Guinea
Cook Islands
Solomon Islands
Vanuatu
Palau
Land
total area (sq kilometers

26

Customary land
Proportion customarily owned (%)

100

Max period for commercial lease (yrs)

25

Average lease rate per acre per annum
agricultural land ($)

980

commercial land ($)

980

Free hold land
average purchase price per acre
Factory Space
average annual rental price per sq ft

2.30

Commercial Banking
Commercial Banks, excl Dev Banks (No)

1

Lending rate range (% per annum)

8.0-11.0

Average lending rate (% per annum)

9.50

Personal Tax Rates (Brackets)
No tax

<2,015

rate of 5%
rate of 6%
rate of 8%
rate of 10%
rate of 12%
rate of 15%
rate of 20%
rate of 25%
rate of 30%

>2,015

rate of 35%
rate of 37%
rate of 40%
Company Tax Rate (%)
Resident Company
General

30

Mining
Petroleum
Non-Resident Company
General

40

Mining
Petroleum
Other Taxes & Fees
Business Gross Receipt tax (%)
GST/Value added tax (%)

-

Sales tax (%)

5

Annual business licence fees ($)

Oct-75

Import Duty Rates (% range)
manufacturing inputs

0

general (excluding cigarettes, liquor et)

20-40