SUVA, Jan. 7 (Xinhua) -- More commercial rental rooms are now vacant around Port Vila, capital of Vanuatu as real estate agencies revealed weak market conditions at the end of 2019.
According to Vanuatu's Daily Post newspaper on Tuesday, while 2019 was a year which ended with struggles and challenges in commercial rental market, hardworking real estate agencies are optimistic in 2020 which can bring better luck with more opportunities in the business sector.
Three major Real Estate agencies in the capital have confirmed similar conditions. One company said that the condition has forced them to struggle when securing clients for commercial rentals.
It is alleged businesses are struggling to make money to meet rental fees and many are forced to close down or relocate to cheaper places. This is due to less activities happening around town, a major real estate company said.
With the government's recent 10 percent minimum wage increase and the possible introduction of income tax, there is more uncertainty within the business sector as more businesses go up for sale.
The Vanuatu government is particularly interested in encouraging investment in tourism, agriculture, fishing, forestry and timber products, however, there are restrictions to ensure that natural resources are not over exploited.
The thrust of government thinking is to encourage labor intensive industries, using local products which will lead to import substitution.
Vanuatu has excellent international communication facilities, with its own earth satellite stations and 24-hour telephone and data transmission facilities. Broadband internet is available.