New Caledonia reopens to tourists amid ongoing political tensions and economic challenges

New Caledonia has officially reopened to tourists after 10 months of political unrest related to electoral reforms.

French President Emmanuel Macron announced sweeping changes to election rules in May, allowing new arrivals to New Caledonia to vote. The decision sparked protests from pro-independence supporters, plunging the capital, Noumea, into civil unrest.

The French government aims to improve relations with its Pacific territory while talks are underway between pro-independence groups and loyalists.

New Caledonia Tourism says that in 2023, it welcomed over 125,000 international tourists and 340,000 cruise ship passengers. This significant recovery was driven by more visitors from New Zealand, Australia, and France compared to pre-pandemic levels.

Nick Maclellan, a special correspondent with Islands Business, says that while the violence has decreased, the economic situation remains dire, with significant job losses and a budget described as worse than catastrophic.

“The Institute of Statistics estimates about 11,600 people lost their jobs in the nine months of conflict last year. There are enormous economic problems facing the country,” Maclellan tells William Terite on Pacific Mornings.

“Things have much improved compared to the clashes and conflict seen last year. But New Caledonia faces many economic and political challenges in the months ahead.”

Manuel Valls, France’s Minister for Overseas, visited Noumēa last month to hold talks with representatives from both sides of the conflict. He told the media that he does not believe the situation in New Caledonia has calmed down.

"It is still tense because there's been a lot of violence, a lot of fear, a lot of racism, and people who no longer speak to each other."

Photo/Supplied

"I will continue to work with a lot of humility because even if we managed to bring together all political forces so they can speak to each other again, we are still far from an agreement."

Following three failed referendums on political status, Maclellan says there is a push for dialogue between the French state and local political factions.

He says a significant development has been the largest pro-independence party, Union Caledonian, participating in talks facilitated by Valls. But Maclellan adds that substantial differences remain over New Caledonia's future.

He says France has not formally apologised for its role in the unrest, but there is an implicit recognition that its electoral policy changes triggered the conflict.

Valls acknowledges that the situation is part of a decolonisation process and emphasises the importance of a united New Caledonia. This has raised concerns among loyalists about potential partitioning of the territory.

“This [13 May riots] is a terrible tragedy for New Caledonia - 14 dead, hundreds injured, enormous economic damages,” Maclellan says. “Hundreds of businesses closed their doors or reduced operations.

Watch Nic Maclellan's full interview below.

“Thousands of people have actually left New Caledonia because of this, particularly French public servants, medical staff, teachers and others who've ended their contracts and refused to renew.”

Maclellan highlights the divide between pro-independence supporters and loyalists. He says the French government recognises the need for a new political status, and upcoming negotiations may focus on revising the 1998 Nouméa Accord.

He says key challenges include differing views on independence. The largest pro-independence party, the Caledonian Union, advocates for a gradual transition, while loyalists oppose this approach.

“There's a lot of talk about how different powers will be allocated between municipal government, provincial government, national government and the overall Congress of New Caledonia,” Maclellan says.

“But some independence people fear that the loyalists want partition. They want the southern province, a bastion of anti-independence support, to remain on its own, leaving the two rural provinces in the North and Loyalty Islands to themselves.”

The French government has realised that the independence movement requires a comprehensive pathway towards a new political status. Maclellan says there is scepticism about a recently announced loan, attributed to high interest rates and unclear terms.

New Caledonia’s FLNKS 44th Congress leaders meet in January. Photo/RRB

He warns that President Macron faces political instability, lacks a governing majority, and is contending with domestic and international challenges. The political future of New Caledonia remains uncertain, causing anxiety among residents and regional concerns, as recognised by the Pacific Islands Forum.

“People in New Caledonia are thinking, if we're going to make a deal about our political future, are we going to be facing the same government in a few months?

“This uncertainty is causing a lot of anxiety among ordinary New Caledonians. And it has regional implications because last year, the Pacific Islands Forum sent a delegation, three prime ministers and a foreign minister, the highest level delegation ever, recognising that peace and security in New Caledonia is a regional affair, not an internal matter for France.”

Maclellan says the conflict is driven by economic and social inequalities, highlighted by last year's riots, rather than solely political issues.

Despite New Caledonia's higher GDP per capita than New Zealand, he says many residents in the French territory live in squatter settlements. French aid often benefits French public servants rather than the local population.

Maclellan says these disparities must be addressed to achieve a peaceful resolution. Younger New Caledonians are increasingly aware of the need for a more just society.

Pacific Islands Forum troika delegation visited Noumēa last year. Photo/PIF

He says the issues faced by New Caledonians extend beyond independence. They include social, economic, and cultural disparities that reflect broader global challenges.

“The inequalities of New Caledonia must be addressed if there's to be a peaceful political solution. And whether France is capable of addressing that politics, I don't think so. I think it's a matter for New Caledonians to decide what sort of society they want.

“I've travelled there and spoken to people. There's a feeling, particularly among younger New Caledonians, that they have to work out how their society works more justly to avoid future political conflicts.

“It's not simply the question of independence. It's also about addressing social, economic, and cultural disparities in this society. And that's true in every country in the world. But New Caledonia is complex. It remains in the 21st century a French colony.

“New Zealanders will understand that the debate about Tino Rangatiratanga, the debate about sovereignty is central to the underlying questions about health and welfare and education and so on that affect people's daily lives.”

Watch David Small's full interview below.

Meanwhile, France's special envoy to the Pacific, Véronique Roger-Lacan, made her first official visit to Vanuatu last weekend.

RNZ Pacific reported that as part of a wide range of calls, she met Vanuatu's new Prime Minister Jotham Napat and discussed a proposed free trade agreement with New Caledonia.

The report reveals the talks also focused on climate change-related topics, including the French-hosted 3rd UN Oceans Conference (UNOC3) in Nice in June.