Invest — Vanuatu Department of Tourism

Investing in Vanuatu's Tourism Industry

Vanuatu, a picturesque South Pacific nation, has carved a niche for itself in the global tourism landscape. Despite the volatility of the world economy, its tourism industry has demonstrated remarkable resilience, boasting steady growth over the last decade. According to travel statistics, this growth is expected to continue, with a projected annual increase of 3% in the number of tourists over the next decade. For prospective tourism investors, this promising trajectory presents an opportunity to make strategic decisions that will shape their investments for the next 10 to 20 years.

What makes Vanuatu particularly attractive to investors is its track record as a preferred destination for renowned resorts and hotels, not just within the Pacific region but also on a global scale. It remains a location of choice for those seeking an authentic Pacific experience that offers a high level of services, a conducive business environment, and a range of tax and financial incentives.

At the heart of this vibrant tourism landscape is the Investment Facilitation Section within the Department of Tourism (DoT), operating under the Ministry of Tourism, Industry, and Ni Vanuatu Business Development. This dedicated section is entrusted with the responsibility of facilitating investments in Vanuatu's tourism and hospitality sector. Collaborating closely with investors, our department identifies potential investment opportunities in some of the most sought-after locations in Vanuatu. Our team of diligent and knowledgeable officers also plays a crucial role in identifying the appropriate legal, financial, architectural, engineering, and professional services necessary to bring your unique project to life. We work in synergy with the Vanuatu Foreign Investment Authority to ensure a seamless investment experience.

As you explore the possibilities of investing in Vanuatu's thriving tourism sector, we invite you to delve deeper into the comprehensive procedures and incentives that await Ni-Vanuatu investors and foreign investors alike. These procedures have been meticulously crafted to ensure regulatory compliance while fostering the sustainable development of our nation. Whether you are a local entrepreneur eager to contribute to our economic growth or a foreign investor seeking new horizons, the following sections will guide you through the steps required to embark on your investment journey in Vanuatu's tourism sector.

Duty Exemption Process

1.) INTRODUCTION

This document outlines the formal process for the tourism duty exemption applications, including eligibility criteria, required documentation, submission procedures, and approval workflow. The Vanuatu Tourism Duty Exemption enables a legally registered and accredited tourism business to import-duty free that relates to/with Tourism Activity/Project and follows the National Sustainable Development Plan (NSDP) 2030 & Vanuatu Sustainable Tourism Plan (VSTP) 2030. This primary legislation provides benefits and incentives to investor/operators in the Tourism and Hospitality sector in Vanuatu. The Department of Tourism will liaise with responsible government agencies to assist interested tourism businesses to access the benefits available.

2.) ELIGIBILITY CRITERIA

Tourism Businesses eligible for duty exemption include:

Existing Tourism Businesses which are registered under Tourism Standard Permit within the valid year of tourism accreditation
New Tourism Project/Business

Eligible goods/Items under Import Duties (Consolidation (Amendment) Act No. 24 of 2023, under Tourism Concession 020 includes:

Building Materials for constructions of Hotel, Resort and Island Bungalow mainly for expansion or renovation. Also, for New Facilities such as Casino, Gym and Conference Facilities
Equipment
Fixtures and Fittings
Furniture
Cutleries
Movable Items
Boats and Other Floating Apparatus

3.) REQUIRED DOCUMENTATION

Applicants must provide the following documents:

Formal Request Letter – Addressed to Principal Investment Officer, Mark Kalotap or the Director of the Department of Tourism, Paul Pio detailing the purpose and justification for duty exemption.
List of items which will be importing including image of the items
Vanuatu Foreign Investment Promotion Agency (VFIPA) Certificate, if you are foreign investor or business
Business Plan (New and Existing Tourism Business if required)
Copy of the Business License within the year of application
Copy of the Certificate of Registration with the Vanuatu Financial Services Commission (VFSC)
Copy of the Tourism Standard Permit, issued by the Department of Tourism in the year of application
Lease Documents – New Tourism Business
Copy of the Preliminary Environmental Impact Assessment (PEIA) or Environmental Impact Assessment (EIA) Report if applicable
Copy of the Foreshore Development Permit, if intending to develop near or on the waters
Architectural Design, if intending to renovate, expand or build
Bill of Lading / Invoice / Packing List – Details of the goods being imported
Any Additional Supporting Documents – Depending on the nature of the exemption request.

For Vessels/Boat:

Formal Request Letter – Addressed to Principal Investment Officer, Mark Kalotap or the Director of the Department of Tourism, Paul Pio detailing the purpose and justification for duty exemption.
List of items which will be importing, including image of the items
Copy of the Vanuatu Foreign Investment Promotion Agency (VFIPA) Certificate, if foreigner
Business Plan (New and Existing Tourism Business if required)
Copy of the Business License within the year of application
Copy of the Certificate of Registration with the Vanuatu Financial Services Commission (VFSC)Copy of the Tourism Standard Permit, issued by the Department of Tourism in the year of application
Marine Architecture Plans
Bill of Lading / Invoice / Packing List – Details of the goods being imported.
3 Certification from OMR: Registration Certificate, Safety Certificate and Safe Manning Certificate
Provincial Access – from Provincial Authority of your respective Province you are operating under
Fishing License – from the Department of Fisheries if you are intending to do any activity in line with Fishing.
Any Additional Supporting Documents – Depending on the nature of the exemption request.

4.) APPLICATION SUBMISSION PROCESS

Applications should be submitted to respective Customs Brokers who will submit on the Online Portal VeSW
Application fee of VUV 12,000 (per online submission) must be paid upon submission to the Vanuatu Government (addressed to the Vanuatu Government), Items 401 Duty Exemption.
A copy the receipt must be submitted (either via email or hand-delivered) to Department of Tourism along with the required documentation
Notification of Submission – The Customs Broker to Notify the Tourism Investment Officer in charge of the submission made online, with the application

5. PROCESSING & APPROVAL WORKFLOW

Application Review – Verification of submitted documents and eligibility.
Internal Review and Accepted – Assessment and Application Accepted by the Responsible Officer
Internal Review and Approval – Assessment and Application Approval by the Director of Tourism
Notification to Applicant – Confirmation of approval or rejection.
Issuance of Duty Exemption Certificate – Official approval is granted within 48 hours.

6. MONITORING & COMPLIANCE

Approved exemptions will be recorded in a tracking system for audit/compliance purposes.
Duty Exemption compliance checks is Mandatory.
Duty Exemption compliance checks will be conducted every year.
Periodic compliance checks will be conducted to ensure proper use of exempted goods.
Misuse of duty exemptions will result in penalties or revocation of exemptions.

7. PENALTIES FOR TECHNICAL OFFENCES

For the purposes of subsection 105(f) of the Customs Act, the administrative penalty for a person who:
a) Fails to communicate information to Customs is VT20,000; or
b) Fails to deal with goods according to the Act is VT50,000; or
c) Fails to keep, retain or produce documents or records is VT40,000; or
d) Fails to comply with a term or condition of a license or permission issued under the Act is VT40,000; or
e) Fails to allow or permit unauthorized entry to a Customs controlled area is VT 20,000; or
f) Fails to answer questions, or in answering those questions makes a statement to a Customs officer or authorized person which is false or misleading is VT40,000; and
g) Fails to lodge documents required under the Act for the correct dealing with goods is VT30,000

8. ADDITIONAL NOTES (IMPORT DUTIES ACTSCHEDULE I, PART 3)

Banner listing the goods eligible for tourism duty exemption

The concession approval is governed by the following additional conditions:
i) That the concession claimed at the time of importation or at the time of clearance from a Customs controlled area by the importer addressed in the approval letter; and
ii) For the listed goods; and
iii) That the conditions specifying the use of the goods, shall be taken, inter alia, to limit such goods to the type, kind or quantity suitable for such uses; and
iv) When any of conditions are not fulfilled or the goods used for any other purpose other than which they have been approved, the Director of Customs may disallow the concession and collect the rate of duty applicable under Schedule 1 of the Import Duties Act; and
v) Such collection shall be without prejudice to action under any other law for the time being in force.
vi) Notwithstanding the conditions specified above, the Director of Customs may reject or approve the concession and impose additional conditions for the protection of the revenue.
vii) The disposal or use of the approved goods for purposes other than that which the concession is granted, within a period of 5 years of importation, be subject to duty payment as provided in Schedule 1 of the Import Duties Act.
viii) The beneficiary of this concession shall maintain adequate stock records of the receipt, storage and disposal of goods imported under the concession, and shall make sure these records are available to Customs and the Department responsible for approving this concession at all reasonable times.
ix) Controls shall include occasional unannounced visits to the premises of the importer concerned for the purpose of examining exempted goods and stocks records related thereto.
x) Should there be a need of extension of this concession; an application should be lodged in the Single Window system one month prior to the expiry of this concession.

CONTACT INFORMATION For inquiries and assistance, contact:
Name: Jennifer Joe Willie Mael
Title: Senior Business Development Officer
Office Address: Department of Tourism, Ministry of Trade and Commerce – George Pompidou Road, Port-Vila, Vanuatu
Phone Number: +678 33400

Email Address: This email address is being protected from spambots. You need JavaScript enabled to view it.

Investment Site Profiles

The Department of Tourism is diligently developing investment site profiles that provide in-depth information about opportunities for foreign investment in Vanuatu's tourism sector. If you're interested in learning more about these exciting opportunities, please check back here periodically for updates or reach out to our Principal Investment Officer, Mark Kalotap, at This email address is being protected from spambots. You need JavaScript enabled to view it..

Invest in Vanuatu's tourism industry and be a part of our nation's journey towards sustainable and exciting growth. We look forward to welcoming you to our vibrant and diverse community of investors.

Customs Duty Exemption

Duty exemption enables you as an existing and new operators/investor to import duty free that relates with Tourism activities/product and follows the National Sustainable Tourism Plan & Vanuatu Sustainable Tourism Plan.

This primary legislation provides benefits and incentives to investors/operators in the Tourism and Hospitality sector in Vanuatu. Duty exemption are only given to existing operators, however if you are a new operator and your business is in line with Tourism Business, we the Department of Tourism may help facilitate, however it will follow different process from the existing operators.

With the New Amendments, that has been Official Gazette on the 29^th December 2023, Import Duties (Consolidation (Amendment) Act No. 24 of 2023. The Act clearly states that only the Director of Tourism may approve Duty Exemption of Customs Duty for Imported goods as listed:

Building Materials for construction of, hotels, resort, and Island Bungalows mainly for expansion or renovation of business. Also, for new facilities such as casino, gym and conference facilities.
Building Equipment’s;

Building Fixtures and Fittings

Furniture’s
Cutleries
Movable items

Boats
Other Floating apparatus

The following items are specifically for approved Tourism Projects that excludes all vehicle types. However, note that VAT is payable.

Procedures and Services

The Department of Tourism will liaise with all the other government agencies to assist investors/operators whether it is an existing or new business to access the benefits available within tourism development legislation.

As of 26^th January 2023, the Department of Customs & Inland Revenue and the Vanuatu Electronic Single Window Project Team (VeSW) has launched the VeSW Concession Module during the International Customs Day in Port Vila.

Duty Exemption Application are now available online and can be accessed through respective Customs Brokers Agency.

Documents required for Tourism Duty Exemption Approval are:

Business Plan if it is a new tourism business.
Copy of VIPA Approval Certificate if it is a Foreign Investors.
VFSC Registration Certificate;
Copy of Business License;
Standard Tourism Permit;
Lease Documents (property_new tourism business);
Copy of Architectural design if intending on building a resort/guest house, etc….;
Copy of Environmental Impact Assessments (EIA) Report; and
Application Fee receipt of VT 12,000 inclusive (address to Vanuatu Government)

Tourism Investment Process