The impact of the 2009 tsunami on tourism and on the Samoan economy is likely to be substantial. The effectiveness of monetary transmission in Samoa has improved over time; however, it is still below international standards. The adverse impact of the crisis on the functioning of the banking system may be alleviated by an improvement in the financial infrastructure. State-owned enterprises (SOE) continue to play an important role in Samoa, and the key to successful SOE reform in Samoa will be placing them on a fully commercial footing.
). However, the share of holiday makers has steadily risen from 30.4 percent in 1997 to 39.8 percent in 2009 pre-tsunami, with the remainder being business visitors whose numbers have remained stable in absolute terms. Holiday visitor numbers surged in particular after 2005, when the introduction of flights by Polynesian Blue—Samoa’s privatizedstatecarrier—meant more competition with Air New Zealand and led to a substantial lowering of airfares. Direct flights from the east coast of Australia were also introduced by Polynesian Blue, giving Samoa access to an enlarged