The Cook Islands tourism industry is getting back to where it was pre-pandemic, but it's still dealing with slow seasons and high airfares. Caleb Fotheringham of RNZ reports.

Rental cars are hard to come by and many hotels are at full capacity in Rarotonga.

Tamaiva Tuavera, affectionately known as Captain Tama, owner of Captain Tama's Lagoon Cruizes, said business is very good - even better than before borders shut in early 2020.

"There's more, I see more tourists here," Tuavera said.

He puts the success partially down to the multiple airlines flying into Rarotonga, from Hawai'i, Tahiti, Sydney and Auckland.

"They're coming in with the bums on the seats. I've been away myself and the flight I flew out on was full and the flight I came back in was full, so that can only mean the island is pumping."

Tehina Barnett who runs Maire Nui Gardens Café is also seeing high demand.

"We're starting to see some record numbers, even in terms of the people coming through the garden," Barnett said.

"So it's been pretty good, it's holding steady."

Tourism accounts for over 60 percent of the country's economy, according to the Asian Development Bank (ADB).

It came to a halt when borders shut. The nation fully re-opened to visitors at the beginning of last year.

'Good problems to have'

Cook Islands Tourism Industry Council President Liana Scott said "business is booming".

"Everything is nice and busy at the moment, activity and tour operators are busy, it's difficult getting a car again, all those good problems to have right now," Scott said.

However, she said it's not easy for everyone, with some trying to catch up on large debt repayments that were put on hold during the "debt repayment holiday" when the country was closed to visitors.

"Even though we're out of that rut and everyone's doing well, it doesn't mean we're out of the woods yet either.

"Compounding interest rates really makes a difference to what the repayment schedule is like for a lot of businesses, especially those that either had just opened or had just expanded prior to covid."

Scott said businesses still had to contend with a shoulder tourism season at the end of the year, which was previously buffered with a flight from Los Angeles loaded with holiday-makers escaping the winter.

Graeme West, General Manager at Cook Islands Tourism Australasia, said from a numbers point of view the country was still down on its peak by 15 to 20 percent.

"It's getting back to around the 2016 levels, so 2019 was the best year we have ever had so right now we will probably do this similar to 2016 and I expect next year to be a lot stronger," he said.

West said demand is there but to reach the previous all-time high another flight per day was needed out of Auckland to reach the 2019 peak.

Price gouging claims and denials

Meanwhile, tourist operators are frustrated over the high cost of flying from New Zealand.

John Dunn, owner of Motu Villas, during a tourism meeting with Air New Zealand on Tuesday local time, accused the airline of price gouging.

"I think if we cut straight to the chase it is cheaper to fly to the States than it is to Rarotonga, what was $1000 and is now $2000," Dunn told airline executives.

In response, Jeremy O'Brien of Air New Zealand said price gouging was an "emotive subject".

He said the airline was not price gouging and put the high prices down to supply chain issues and balancing shareholder interests.

"I feel like we're pulling our weight, but it is not a single Air New Zealand issue driving that.

"But we are not price gouging, I won't accept that."

Tata Crocombe owner of the Rarotongan Beach Resort and Lagoonarium, where the event was held, told the airline executives there needed to be better communication between the airline and the Cook Islands community.

"The decisions that you make are terribly important to this community," he said.

"We're not on the same page. There's no point having an argument about it; from our point of view the fares are very, very high.

"So we're not buying the story on fares."