Economy
Tourism is a significant industry.
In July, the Heivā festival in Papeete celebrates Polynesian culture and the commemoration of the storming of the Bastille in Paris. After the establishment of the CEP (Centre d'Experimentation du Pacifique) in 1963, the standard of living in French Polynesia increased considerably and many Polynesians abandoned traditional activities and emigrated to the urban centre of Papeete. Even though the standard of living is elevated (due mainly to French foreign direct investment), the economy is reliant on imports. At the cessation of CEP activities, France signed the Progress Pact with Tahiti to compensate the loss of financial resources and assist in education and tourism with an investment of about US$150 million a year from the beginning of 2006.
The main trading partners are France for about 40% of imports and about 25% of exports, the other main trading partners are the US, Japan, Australia and New Zealand.
Tahitian pearl (Black pearl) farming is also a substantial source of revenues, most of the pearls being exported to Japan, Europe and the US. Tahiti also exports vanilla, fruits, flowers, monoi, fish, copra oil, and noni.
Unemployment affects about 13% of the active population, especially women and unqualified young people.
Tahiti’s currency, the French Pacific Franc (CFP, also known as XPF), is pegged to the Euro at 1 CFP = EUR .00838 (approx. 94 CFP to the US Dollar in June 2012). Hotels and financial institutions offer exchange services.
Sales tax in Tahiti is called Taxe sur la Valeur Ajoutée (TVA or value added tax (V.A.T.) in English). V.A.T. 2009 on tourist services is 10% and V.A.T. 2009 on hotels, small boarding houses, food and beverages is 6%. V.A.T. on the purchase of goods and products is 16%.
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Famous quotes containing the word economy:
“Unaware of the absurdity of it, we introduce our own petty household rules into the economy of the universe for which the life of generations, peoples, of entire planets, has no importance in relation to the general development.”
—Alexander Herzen (1812–1870)
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)