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The Kingdom of Tonga is an archipelago in the south PacificOcean comprising 169 islands, 36 of them inhabited, stretching over a distanceof about 800 kilometers (500 miles) in a north-south line. The islands liesouth of Samoa and are about one-third of the way from New Zealand to Hawaii.Tonga is the only surviving monarchy among the island nations of the PacificOcean, as well as being the only island nation never to have been formallycolonized. The islands are also known as the Friendly Islands because of thefriendly reception accorded to Captain Cook on his first visit in 1773. 

Tonga has a small, open, South Pacific island economy. Ithas a narrow export base in agricultural goods. Squash, vanilla beans, and yamsare the main crops, and agricultural exports, including fish, make uptwo-thirds of total exports. The country must import a high proportion of itsfood, mainly from New Zealand. The country remains dependent on external aidand remittances from Tongan communities overseas to offset its trade deficit.Tourism is the second-largest source of hard currency earnings followingremittances. The government is emphasizing the development of the privatesector, especially the encouragement of investment, and is committing increasedfunds for health and education. Tonga has a reasonably sound basicinfrastructure and well-developed social services. High unemployment among theyoung, a continuing upturn in inflation, pressures for democratic reform, andrising civil service expenditures are major issues facing the government.

Tonga's development plans emphasize a growing privatesector, upgrading agricultural productivity, revitalizing the squash andvanilla bean industries, developing tourism, and improving the island'scommunications and transportation systems. Substantial progress has been made,but much work remains to be done. Efforts are being made to discover ways todiversify. One hope is seen in fisheries; tests have shown that sufficientskipjack tuna pass through Tongan waters to support a fishing industry. Anotherpotential development activity is exploitation of forests, which cover 35% ofthe kingdom's land area but are decreasing as land is cleared. Coconut treespast their prime bearing years also provide a potential source of timber. Thetourist industry is relatively undeveloped; however, the government recognizesthat tourism can play a major role in economic development, and efforts arebeing made to increase this source of revenue. Cruise ships often stop in Tongafor whale watching, game fishing, surfing, beaches and the like and isincreasingly becoming a major player in the South Pacific tourism market.

Real estate companies have also just started to spring up inTonga; as such, they were basically unheard of less than a decade ago. Thesehave provided a way of making income for many Tongans as nearly every maleTongan has plots of land that he has never seen and the leasing of thisvaluable and attractive land allows the Tongan to live in a comfort notexperienced before. There are also many Tongans who work as commission agentsand earn a living by finding available land parcels and bringing them to localex-pats or computer savvy Tongans to list on-line.

In contrast to other Pacific island countries, there is nocustomary land in Tonga. Tonga practices a somewhat feudal system of landownership. All land in Tonga belongs to the King, and then the King may grantto nobles and titular chiefs one or more estates to become their hereditaryestate. The ownership of the said estate is passed only to the male members ofthe family or clan. Foreigners may lease land for up to 99 years, subject tothe approval of the Cabinet. Estate holders are allowed to lease only fivepercent of the total area of their estate. It is not permitted to sell anyland.