PO Box 142, Waitati 9069, Otago, NEW ZEALAND
Phone Fax: 64 3 482 1202
tours@fikco.com • http://www.fikco.com
COMPANY PROFILE
Since 1991, Friendly Islands Kayak Company (FIKCO) has specialized in guided sea kayak expeditions in the Vava’u and Ha’apai Island Groups, Kingdom of Tonga. In addition, FIKCO offers multi-sport packages including mountain biking, kayaking, whale watching, snorkeling, diving and sailing (the latter two activities provided by sub-contractors).
FIKCO is rated as a professional international company ranking alongside The Moorings, The Tongan Beach Resort and Mounu Island Resort - all of Vava’u, Tonga. (Tourism Resource Consultants. 1999 NZODA Vava’u Nature Tourism Feasibility and Design Study.) FIKCO has gained the following international recognition: * Short-listed for the 2005 Responsible Tourism Award: Best Mode of Transport or Initiative * Short-listed for the 2004 Responsible Tourism Award: Best for Conservation of Endangered Species * Ha'apai 12-day expedition amongst the world's greatest 25 adventures for 2004 (National Geographic Adventure magazine) * 2003 Air Pacific Tabua Award: Best Web Site for the South Pacific.
FIKCO operates a fleet of proven single and double sea kayaks (Necky, Quality Kayaks), mostly fibreglass, totaling 50 cockpits. As well, FIKCO owns a 28 foot rigid inflatable vessel, 14 front suspension mountain bikes plus many other chattels. FIKCO's two-year Development License was renewed in July 2006 thereby exempting FIKCO from duty on imported capital goods.
Sea kayaking expeditions generate approximately 85% of FIKCO’s revenue. The remainder is primarily whale watching and snorkeling sales. Since 2002, FIKCO's sister company, Whales Discoveries, has been offering snorkeling and whale watch excursions in the Vava’u Islands aboard the Company's 28 foot rigid inflatable vessel MV Tropic Bird, powered by twin Yamaha 150hp outboard engines.
From June through October each year, Tonga's warm sheltered waters are prime breeding and calving grounds for migratory southern ocean humpback whales. Whale watching is a relatively young industry in the Kingdom yet has enormous growth potential given the close proximity of the whales' habitat to the islands together with reliable sightings, particularly of mother and calf pairs.
The Adventure Centre, home of FIKCO and Whale Discoveries, is located in street-front leased premises in Toula village overlooking the fjord-like Port of Refuge, two kilometres from the main township of Neiafu, Vava’u. Guided whale watch and multi-day kayak excursions depart from the Adventure Centre's private wharf. Freedom kayak and bike day rentals are also conducted from the Adventure Centre. The Adventure Centre's expansive harbour-side balcony provides a relaxing atmosphere for visitors to orient themselves and contemplate their adventure of choice. As well as serving as an activity and bookings centre, the Centre offers free access to resources on Tonga’s history, geography, flora, fauna, marine ecosystem and culture.
The Manager's two-bedroom leased residence, nestled in native bush at the base of Mt Talau National Park, offers privacy and a bird's eye view of Neiafu township and harbour eastward to the outer islands.
A limited company, FIKCO has four original shareholders: a New Zealand couple and a Tongan couple. After 16 years of active involvement in FIKCO's marketing and operations, both couples are ready to sell their shares for family reasons. At the time FIKCO was established, the Government of Tonga required all businesses to have a Tongan interest in order to qualify for duty concessions on the importation of capital goods. However, Government policy has since changed such that foreign investors are no longer compelled to enter into a legal partnership or shareholding with locals. Such arrangements may nevertheless be advantageous in that Tongan people have the local knowledge and can liaise in their native tongue with other locals and with government officials. Foreign developers may lease real estate in the Kingdom privately or from the Government, but by Tongan law, free-hold land is available exclusively to Tongan nationals.
In Tonga, from June through December, FIKCO employs a full-time Operations Manager, a part-time Office Manager, a part-time Secretary/Receptionist, three part-time indigenous guides, a full-time western guide, a part-time cleaner and a part-time gardener. Whilst Tonga telecommunications have recently improved, Tonga still experiences intermittent problems with phone, fax and the Internet. Hence, the Directors relocated FIKCO's reservations office from Tonga to New Zealand in 2002, since when FIKCO's accessibility ratings have significantly improved. The reservations office is Internet based, thus is highly portable (i.e. can be based anywhere in the world with reliable communications). During FIKCO's low season (January through May), a part-time Marketing Manager, based in New Zealand, conducts the international promotional work vital to FIKCO's survival. Many smaller tourism businesses in Tonga promote their products on a national level only. However, businesses in Tonga that rely exclusively on the walk-in market tend to suffer since this market, though growing, is still miniscule compared to that of other South Pacific destinations (e.g. Fiji, Cook Islands).
FIKCO is a small-scale development appropriate to the Pacific Island context. A tiny island nation with limited infrastructure, the Kingdom of Tonga is not a mass tourism destination. Rather, Tonga appeals most to the discerning eco-traveller by virtue of its pristine natural environment, cultural traditions, stable political climate and relatively low tourist numbers. Not to mention Tonga's sheltered waterways, which are an ideal playground for water sport enthusiasts. For the above reasons, the practice of environmentally and culturally sustainable tourism is essential to FIKCO's long-term future.
Eco-tourism is the fastest growing sector of tourism and has enormous potential benefits for Tonga. FIKCO benefits the wider community through the promotion of community education, the creation of local employment, the transfer of diverse skills, the generation of foreign exchange, and ultimately the improvement of living standards in Tonga. These benefits are consistent with the economic and developmental goals and objectives of the government of Tonga:
"Government policy is to further support and promote tourism as a major earner of foreign exchange and to play an expanded role in sustainable economic development." (Tourism Council of the South Pacific. 1997 Economic Impact Analysis of Tourism in Tonga. Report prepared by Deloitte & Touche for the Tourism Council of the South Pacific, Suva, Fiji.)
Indeed, tourism is a vital factor in the Kingdom’s economy with the importance of tourism in Vava’u increasing annually. Vava’u attracts roughly fifty percent or 15,000 of the Kingdom’s total visitors. FIKCO’s existing customer database comprises approximately two thousand individuals plus three hundred travel agents and wholesalers. Currently the ratio of direct bookings to agency referrals is 60:40. FIKCO’s target market of inbound clients accounts for the majority of the Company’s revenue. The demographic profile of this market is the active, well-travelled, well-educated professional with a high disposable income and a mean age of 35 years. Inbound customers originate in the following continents (listed in descending order from strongest to weakest markets): New Zealand, United States, Canada, Europe, Australia and the United Kingdom. A secondary, yet growing market, is that of the free independent traveler (FIT) from the above continents with a mean age of 30 years and a lower disposable income. FIT’s currently represent just 10% of FIKCO’s business. However, this market has the potential to grow as an increasing number of adventure travelers seek safe alternative destinations off the beaten track.
For the first time, this reputable eco-tourism operation is for sale. The business is ideally suited to an owner/operator couple, experienced in sea kayaking and global marketing, seeking an active lifestyle in a unique South Pacific island setting.
