Call for government to take over Vaimaanga Hotel project
The Vaimaanga Hotel is seen as a “cash cow” that would stimulate the nation’s ailing economy like no other development can

While developer Tim Tepaki remains tight lipped about the Hilton project at Vaimaanga until government is fully briefed, a visiting businessman friend about to return overseas and privy to the information was more forthcoming, saying Vaimaanga is a “cash cow” that can stimulate the nation’s ailing economy like no other development can if developed as a 4-6 star Hilton resort as proposed by Tepaki.
The visitor said Tepaki is aware the Mirage developers have asked his NZ financier and the NZ architects he sacked for information on his joint venture’s proposal to complete Vaimaanga as intended by the previous Sheraton developers, presumably because they want to do likewise. The visitor said he shared Tepaki’s rationale in aborting that proposal as the resort will only yield 4 star accommodations at best and be put to shame by the like of Rumors of Romance and other quality accommodation already on island. It will also compete with other 4 star facilities for business, he said, whereas the 4-6 star Hilton resort now proposed by Tepaki, for which EIA approval has been given, will give tourism a quantum leap to international class and introduce a high yield dimension of tourism the Cook Islands has yet to see.
The visitor told the Herald it all comes down to funding being made available by the Peoples Republic of China to enable Pacific Island States to develop key assets and stimulate their economies, understood to be at 2% interest for a loan term of 20 years. He said Tepaki showed him a signed letter of interest for NZ$83 million funding out of the USA at 14% interest for a loan term of 2 years and asked “how the hell does anyone beat Chinese funding?” He said it’s a no brainer. If Tepaki can make the development work at 14% interest it will be seven times more robust and profitable at 2% interest.
The visitor said that funding is only available “government to government” the government would reasonably be responsive to rescuing the project and Tepaki and his team have resolved to ask government to take over the project and save the economy. He said true to form his mate, always with a heart for the people, is asking that government retain 51% and gift 10% to Takitumu, 10% to Puaikura, 10% to Te Au O Tonga, 10% to Outer Island Councils, 5% to Pa Ariki and 4% to a nonprofit Trust he wanted to set up to sponsor Christian, Cultural and Sports activities. “That mate of mine loves his people regardless how many times some of his own people stab him in the back,” he said.
The visitor told the Herald that his take on Tepaki’s figures is that government will net NZ$9 million plus a year for its tax take and profit share after debt servicing and will at least triple the ability of government to borrow and expand the economy, all paid by the Hilton project. He said he agreed with Tepaki’s sentiment that government and its Task Force is only tinkering with the economy and it will slide into recession as depopulation bites, when the answer is staring them in the face – Take the 2% funding and expand the economy!
Asked how anyone can have faith in government being able to develop it, the visitor said government did it before when it jumped into bed with Air NZ and THC and developed The Rarotongan to introduce the tourism the nation now enjoys. Okay government came unstuck with the Sheraton when it jumped into bed with the Italians to introduce international brand tourism. In any case the proven development combination of government and the Chinese state owned enterprise that developed the Courthouse, Police Station and Sports Stadium with no budget blowout and timely delivery of the developments is staring the Cook Islands in the face, with 2% funding he said. The visitor said Tepaki has been in discussion with the Chinese SOE and all government has to do is reach out and say yes!
As for those who whine developments should be done by private enterprise, the problem is the local private sector doesn’t have the money, so either government do it for the Cook Islands or it allows foreign developers to come in and do it for themselves and take the profits offshore as usual. He added government can always sell to the local private sector when done, as it did with The Rarotongan, but with 2% money why not keep it and spend the profit and stimulate the economy? The visitor said he wished his friend Tepaki and his Cook Island team well and said “Kia Toa”.