7 November 2012 Last updated at 07:36 ET

Niue profile

The residents of the Pacific island of Niue are far outnumbered by their compatriots who have migrated to New Zealand.

Home to fewer than 2,000 islanders, the self-governing coral atoll is trying to encourage some of the 20,000 overseas Niueans - many of them New Zealand-born - to return.

Niue operates in free association with New Zealand, its main source of aid and its biggest trading partner. New Zealand is obliged under the island's constitution to provide "necessary economic and administrative assistance". All Niueans are New Zealand citizens and can take up residency there.

Niue runs its own affairs, with the exception of defence matters and foreign relations, which are handled by New Zealand. However, there are some anomalies in this situation. For example, in September 2012 Niue established separate diplomatic relations with India.

Niuean children prepare to do a traditional dance

Niueans are citizens of New Zealand

The long-running population decline was aggravated by Cyclone Heta, which devastated the island in 2004. Some observers fear that the community's viability is threatened by migration.

Economic activity revolves around fishing, agriculture and tourism. Surrounded by a coral reef and with a rugged coastline, the island attracts whale-watchers, divers and yachting enthusiasts.

Technology-savvy Niue has embraced the internet. It earns money from the sale of its suffix and in 2003 it became the first territory to offer a free wireless internet service to all residents.

Lying between Tonga and the Cook Islands, Niue was settled by Samoans in the first century AD. Britain's Captain James Cook sighted the island in 1774, dubbing it "Savage Island" after locals thwarted his landing attempts.

British missionaries arrived in the 19th century and the island was subsequently administered from New Zealand. Niueans voted to become self-governing in 1974.