Expatriate-owned businesses are expanding into residential areas in Luganville, raising growing concern among local residents and small shop owners.

Communities across the four wards of Luganville say the spread of foreign-owned shops is threatening the future of local businesses. Several shop owners told VBTC News they are unsure how long they can survive under the increasing competition.

The issue escalated this week after land in the Sarakata ward was cleared for development. The Department of Lands confirmed that the lease belongs to Mr. Jinju, owner of Sunshine Store in Luganville.

However, community representatives say the land had previously been used by youth groups in Sarakata to run cooperative businesses supporting local programs.

Community leader Mr. Charley Ulas expressed his disappointment.

“It is the municipality’s duty to regulate. They are the ones encouraging these businesses to go ahead today,” he said.

The Santo Lands Office confirmed the lease title is legally registered, and because of that, the government cannot stop the development.

“If you have the land lease title, then the land is yours,” a Lands officer said. “The government has a duty to manage the interests of its people.”

Local shop owner Mrs. Jaylena Prechtefelt said her business has already felt the impact.

“Before, our shop used to have big income and we sold out most of our goods. But now with Sunshine here, our sales have dropped. We just don’t make the same money anymore,” she explained.

Mr. Ulas has called on the people of Luganville to elect leaders who can make fair decisions for community development. He also urged the Luganville Municipal Council to review its zoning policies to ensure local businesses have a fair chance to survive.

VBTC News reached out to the Luganville Municipal Council for clarification on whether expatriate businesses are legally allowed to operate in residential zones. However, the planning officer was unavailable to comment.