New Caledonia is often cited as one of the most expensive destinations in the South Pacific due to its status as a French overseas territory and its high dependence on imports. Because the local economy is heavily bolstered by the nickel mining industry rather than just tourism, there is less pressure to keep prices "tourist-friendly." Most food, fuel, and consumer goods are shipped in from France or Australia, leading to high retail costs. Additionally, the local currency (CFP Franc) is pegged to the Euro, which keeps the cost of living—and thus the cost of dining and accommodation—on par with major French cities like Paris or Nice. Labor laws and minimum wages follow French standards, which are significantly higher than in neighboring Pacific nations like Fiji or Vanuatu. While the "luxury" price tag reflects the high quality of infrastructure and French-influenced gastronomy, it means budget travelers must plan carefully to avoid sticker shock.