Running a business in Tonga is a struggle, but persistence is a key to survival, agreed three New Zealand-Tongan business owners at a breakfast panel organized by the New Zealand Tonga Business Council, at the Tanoa Hotel today, Friday, August 31..

Jennifer Boggiss from Heilala Vanilla, David Edwards from Tonga Brewery, Joanna Bourke from Coco New Agency and Daniel Henson, Bank South Pacific (BSP) Tonga Manager, spoke on the theme of "New Zealand businesses doing business in Tonga, its challenges, and tips to survive while remaining optimistic for their future".

Brewery

David who runs a Tongan brewery said that for over 14-years there has been a transition in the locals' preference of beer, with imported beer now the most consumed in Tonga.

He said there have been many changes in Tonga and that politics also now plays a part in how well businesses are run.

“I found it a real struggle to do business here. I’ve been through three kings and many governments. But I’ve found that the voice of the private sector has weakened over the years.”

He said as Tonga comes to terms with democracy, there’s a willingness to work with the private sector. "Obviously, there are long term visions for the country, I think there are definitely opportunities here and we might see things change."

In spite of that, he said one has to be "optimistic" to doing business in Tonga.

"There are definitely opportunities in Tonga, especially NZ businesses. It’s just a matter of doing it and persevering through the issues and just hang in there," he said.

Vanilla

Jennifer Boggiss from Heilala Vanilla said after more than 15 years in Tonga, she found it takes a lot of effort to run a business here.

"I am also away from home more to promote and sell Tongan Vanilla overseas. But there is also an agricultural risk as well," she said.

After Cyclone Gita hit Tonga in February, some buyers pulled out and went to buy elsewhere because they thought the cyclone had damaged crops but, in fact, they still had the beans here and, unfortunately, those are the sorts of issues she deals with.

Jennifer has taken Tonga’s vanilla to the world with supplies in New Zealand and Australia and is now focusing on the U.S. market. She recently secured a deal with a top restaurant, Eleven Madison Park, a fine dining restaurant in New York City.

“When I went to Eleven Madison Park, I think what helped them accept our vanilla was the story I told them about Tonga and how vanilla is helping Tongan families and communities.”

Vanilla also provides employment with five staff in 'Eua and up to 40 in Vava'u during planting season. 

Jennifer also aims to employ 200 people by 2020 and has already planted vanilla on 100 acres in Vava’u and is planning to acquire 50 acres in ‘Eua.

“People think it’s easy to grow vanilla, harvest it, package it, and sell. It takes around four-years from start to finish and be on shop shelves.”

She also has a passion to empower women in Tonga and is helping families in Vava'u and 'Eua. 

Sela Latu, who manages Heilala Vanilla in 'Eua, has benefitted from the business which has helped her and her family since she was little.

"They paid for my school fees here and in New Zealand. I now manage the ‘Eua branch of the business," she said.

Persistence

Joanna Bourke, a Tongan from New Zealand, said she founded Coco New Agency because she saw a gap in the market in branding, marketing and public relations.

Since starting her business, she said she has faced many barriers such as language, as she does not speak Tongan, and being a female when doing business with men.

“It’s been tough for me. People don’t see the value in branding or PR awareness.”

She doesn't get paid at times but things are starting to get better. 

“To do business in Tonga, you need to have perseverance, be persistent and have passion to do business in Tonga.”

Mindset

Daniel Henson, BSP Tonga Manager said he had to adjust his mindset to work in Tonga and is making progress.

He said work might not be at the top priority for the Tongan people that you employ. "It might be sixth on the list as they've got family, they’ve got church, they’ve got a whole lot of other things that are pretty much more important to them than coming to work to further their career and things like that."

"In addition, a hierarchy culture is still in Tonga. It’s hard for my staff to make decisions and stuff like that is very difficult. They would rather just pass it to me and say what do I do here," he said.

"I’ve spent four and a half years trying to break that down and I am making good progress with my staff but it still happens."

He also adds that if one wants to invest here, to be be tolerant and persistent.

The panel was part of a four-day program for a Tonga Business Delegation visiting Tonga from New Zealand this week.