Discover New Caledonia : Current issues

New Caledonia is one of the most prosperous territories in the South Pacific and has the highest GDP per capita of the ultra-marine communities. It currently enjoys low economic growth, thanks to its nickel wealth and public transfers, despite a slowdown due to a drop in the price of metals on the international market as a result of the crisis. The economy is still dependent on contributions from France and fluctuations in nickel prices for its balance of trade and balance of payments. The Government is trying to develop new sectors such as aquaculture and tourism. Tourism is obviously at the heart of current thinking regarding the economic future of New Caledonia. The institutions believe in it and have set the objective of 200,000 tourists per year by 2025.

The place of tourism

Anexotic destination located on the other side of the world, New Caledonia, unlike French Polynesia, is away from the major tourist circuits. The archipelago attracts only 126,000 visitors (2019) and yet it is not for lack of being richly endowed. It is endowed with an exceptional and preserved nature: the largest lagoon in the world, a rich tropical forest populated with endemic species, a great diversity of landscapes. The price of the plane ticket and the cost of living on the spot slow down the metropolitan ardors. Caledonians have never bet on mass tourism and it is finally a chance and a pleasure to evolve in the middle of such a setting.

The territory's policy today tends to diversify the range of tourists. The numbers are on the rise. In 2017, Metropolitans were the most numerous (37,326), followed by Australians (23,025), closely followed by Japanese (21,472), then New Zealanders (10,553)... Generally, Metropolitans stay a month on the Pebble to visit a family member.

In 2018, the Southern Province organized the tourism workshops on the Isle of Pines, which, for the occasion, was transformed into a real tourism laboratory. The island that is nicknamed the "jewel" or the "jewel" of New Caledonia attracts more and more people every year. On average, the Isle of Pines welcomes 66,000 tourists and 225,000 cruise passengers each year. These are important and not insignificant figures. The idea of this workshop is to try to determine together (institutions, customary, tourism professionals and inhabitants) measures to reconcile economic development and environmental protection. The discussions resulted in topics such as selected tourism, water and resource management. Particular emphasis was placed on the pollution generated by cruise ships, particularly with regard to anchorages and the degradation of the sea bed.

Cruise passengers, who disembark en masse in Nouméa, Maré, Lifou and the Isle of Pines, help to boost tourism figures. However, the impact of this cruise tourism is sometimes difficult to evaluate. Indeed, these boats pour thousands of passengers every day in a short period of time and on a small part of the territory. These tourists tend to spend little money in a short period of time, but we still see businesses and services set up during the days of arrival of boats. This may seem paradoxical, but it is a form of ephemeral tourism that does not last.

In terms of tourism, it is interesting to contrast the two countries, New Caledonia and Vanuatu. On the one hand, New Caledonia, land of the "Caldoches", the "metros", the mestizos, the Wallisians and of course the Kanaks (who did not have a strong taste for tourist activities, but it must be said that nickel is no longer enough), is opening its doors more and more to tourism. Mostly regulated, responsible and (almost) never mass tourism. On the other side, Vanuatu, like a new model, more than a simple neighbor, inspires. Far from being self-sufficient yet, but independent. But where construction is going well. Roads, airports and resorts are gradually being built. China, silent, is already present. It "offers its workforce", the credits are gigantic and one would almost start to fear it..

Nickel, the green gold of New Caledonia

The nickel sector, the keystone of the country's economy since the 19th century, goes beyond the economic framework and contributes to the social development of the archipelago. Indeed, the island has a quarter of the world's nickel reserves, and in 2007, the precious ore represented approximately 17% of New Caledonia's GDP. Unfortunately, since that date, this rate has continued to fall, reaching only 6% of GDP in 2014. Multiple causes are cited to explain this worrying decline: the fall in the price of Nickel (-30% in 2015), the collapse of the global market, and the ever-increasing international competitiveness. In 2016, the situation was serious and there was a real fear that the factories would close, so the State decided to bail out to avoid the terrible social crisis that would have resulted from the loss of many jobs. In February 2018, the price of nickel is much more favorable than a year earlier. It is in the average range of June 2013 ($13,200-15,000). On February 15, 2018, it reached $14,420 per ton, its highest level since 2015. Despite this, employment in the sector continues to fall. In 2018, following the stabilization of prices, driven by cobalt, the market gave some positive prospects to this strategic activity for New Caledonia. At the beginning of 2022, it reached a record level, its highest level in 11 years, with a price of $30,000 per ton.

At the beginning of 2023, the price fell sharply (to around $22,000), i.e. around 20% since the beginning of the year "due to a lack of optimism regarding the outlook for Chinese demand".

Agriculture

The utilizedagricultural area still covers 13% of the territory and provides for about half of the local needs. A 2013 study by the Caledonian Agri-Food Institute analyzed the distribution of agricultural production in New Caledonia. One third of the production is consumed by the producers themselves, one third is used for donations or custom, 20% is replanted for production, and finally 12% of the production is sold. Agriculture in New Caledonia is therefore essentially food-producing. And represents only 2% of GDP in 2018.

Coconut plantations are widespread in the territory. They are particularly visible on the eastern coast of Grande Terre and on the Loyalty Islands, especially in Ouvéa where two separate factories produce oil and soap from copra. Local production covers about 80% of New Caledonia's consumption of household soap. While in Ouvéa, visit Fayaoué and Wadrilla to see the two factories.

Coffee cultivation was also established in the archipelago at the beginning of the 20th century with the arrival of the colonists. Its exploitation knew a prodigious rise during the inter-war period (1918-1939), at which time exports exceeded 2,000 tons annually. Today, the production does not even cover the local needs. Approximately 2,000 families (generally Kanak) now operate plantations under shade that vary in age from 30 to 80 years. The aging plants and the low level of yields have prompted the territorial authorities to launch so-called "full sun" plantations. During your stay in New Caledonia, do not hesitate to taste the flavor of Royal Pacific (www.royal-pacifique.nc).

Breeding

The livestock sector has made significant investments in order to improve pastures, to obtain an interesting genetic selection and to ensure adequate veterinary surveillance. During your stay on Grande Terre, you will cross large meadows and come across vast extensive breeding stations (cattle, sheep, pigs) mainly concentrated on the west coast, notably between the communes of Bourail, Boulouparis and La Foa. Among the first agricultural productions in New Caledonia: beef for fattening. The quality is good, but the price remains high and the production relatively low compared to the available space. If you visit one of these breeding stations, try to attend the bathing of the animals. A part of the stockyard is indeed fitted out as a swimming pool in order to wash the cattle with a product against ticks. This operation is repeated once a month. From a sanitary point of view, it is essential as the proliferation of ticks weakens the cattle (the mules of the American army during the last war imported them into the territory).

You can visit some of the West Coast cattle stations on horseback, on foot or by 4x4. During the agricultural fairs, such as the one in Bourail in August, which usually take place from July to September, don't miss the rodeos with their wild horses, bulls, and lassoed calves: an integral part of the life of the Broussards. Forages and pastures occupy a very large part of the agricultural surface used. At the same time, deer breeding has also developed. Industrial crops are spread around Noumea, as well as poultry farming with an important production of eggs. Nevertheless, New Caledonia is still not self-sufficient in this sector, despite the substantial aid granted. Milk production remains insignificant throughout the territory.

Essential oils

Essential oils are part of the production of the small local industry. Niaouli is harvested in the foothills of the mountain range from Hienghène to Ponérihouen on the east coast, as well as in the Boulouparis and Païta region on the west coast. The producers collect the niaouli, which is then distilled in one of the twelve small establishments located on the west and east coasts. The production of niaouli oil supports about two hundred families. This essential oil (gomenol) is used in the composition of certain medicines. Very pure natural balsamic essence, it needs to be kept away from light, in a cool place, with the cap of the bottle well closed. It can be used as a chest and back rub, as a gargle (2 to 3 drops in a glass of water), as an inhalation (3 drops in a bowl of hot water) or by breathing it in, and even by swallowing it (put 3 drops in a spoonful of honey). Gomenol also relieves insect bites and soothes rheumatic pains. Sandalwood oil, from the eponymous wood that grows on the Loyalty Islands (Mare) and the Isle of Pines, is mainly used in the perfume industry.

Logging

During the flight over New Caledonia or during the tour of the territory by car, you may be surprised by the surface of the forest. Indeed, it occupies three quarters of the archipelago's land. It is in the heart of the central mountain range, between the communes of Bourail and Boulouparis (west coast), that the main logging area is located, halfway between the Roussettes pass and the Nassirah pass. The production of wood has decreased during the last decades following the fears expressed by the tribes, which rightly fear an over-intensive exploitation of the forests, detrimental in particular to the survival of the game. In the South, intensive exploitation has caused massive soil erosion. Fortunately for the safeguarding of these forests, polyvinyl chloride (PVC), aluminum and metal are now advantageously substituted for wood...

Fishing

The fishing activity in New Caledonia corresponds to three distinct categories. Fishing in the lagoon is carried out on board small motorized boats and concerns coastal fish and also the fishing of sea cucumbers, whose flesh is rich in proteins. Cleaned and dried on site, they are then exported to Hong Kong, China and Japan. Shells such as trocas are used to make buttons and jewelry. The inshore fishery, on the other hand, is mainly concerned with tuna and snapper, which you can find in the markets, especially in Noumea. Vessels exploit the outer reef and the territorial waters. Offshore fishing, on the other hand, concerns tuna and deep-sea fish, some of which are exported to Japan (bigeye tuna). This type of offshore industrial fishing is authorized in the exclusive economic zone (EEZ) and beyond the territorial waters. Foreign vessels from riparian countries must obtain a license or have an annual agreement with New Caledonia which sets a quota and a stop date for fishing. The Western Pacific is rich in tuna. Half of the world's tuna catches are made in this area.

Referendums of self-determination

Three referendums were held to answer the question "Do you want New Caledonia to accede to full sovereignty and become independent?"
Signed on June 26, 1988, the Matignon-Oudinot Accords provide for a ten-year period of economic, social, cultural and institutional development before a referendum on self-determination is held in 1998. Ten years later, instead of a referendum, a new agreement was signed. It "provides for a process of gradual and irreversible transfer of powers to New Caledonia before the referendum on self-determination, in 2018 at the latest." The no vote won with 78,734 votes against 60,199 for.

The law provides, in case of victory of the "no", a mechanism where one third of the members of the Congress of New Caledonia can request the organization of two new consultations within two and four years after the first referendum. The December 2021 consultation, after those of 2020 and 2018, is the last one scheduled in the self-determination process.

The "no" vote won with 96.50 per cent of the votes, with a turnout of 43.87 per cent and a boycott by the pro-independence movement.

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