AIR Rarotonga has introduced a fuel surcharge in response to the Middle East crisis, as the Cook Islands shifts from promoting tourism growth to managing visitor numbers sustainably, the airline’s Managing Director said.
Sir Ewan Smith confirmed the surcharge has been in place for six weeks. While fuel supply is currently secure, the price has nearly doubled. Local residents are feeling the impact most acutely, with no corresponding income rise, leading some to travel less. By contrast, the visitor market has proven resilient so far, with forward bookings dipping only in the three-to-four-month window due to uncertainty.
Smith said that infrastructure is a work in progress, with the government working on paving Manihiki’s runway in the remote Northern Group, located some 1300–1400 kilometres from Rarotonga. The upgrade will allow Saab or ATR aircraft to operate there, having the flow-on effect of reducing costs and opening the door for bespoke tourism in an area that is typically more isolated.
The Cook Islands received approximately 185,000 visitors last year. Smith noted that the national tourism corporation is now prioritising a Destination Stewardship Plan that is focused on environmental and social sustainability, improving visitor yield, and experience quality rather than endlessly increasing arrival numbers.
Air Rarotonga has just purchased a third Saab 340 to ensure everything runs as scheduled on its main routes to Aitutaki and Tahiti. Within the next five years, the airline expects to transition to ATR aircraft, aligning with regional partner Air Tahiti, to simplify maintenance and parts support.
The Director said that in the future, he sees an ownership transition, with staff ultimately taking a meaningful stake in the business.
Major challenges include maintenance costs doubling and local affordability of travel. Smith said the solution lies in moving from selling standalone airfares to integrated tour packages that offer experiences visitors genuinely want to buy.
