New Zealand's governor-general, Anand Satyanand, is in Niue on his first official overseas trip since taking up the post last year.
He leads a 25-strong delegation of prominent New Zealand Niueans, Niuean representatives from the New Zealand armed services and other government officials.
New Zealand is Niue's main aid donor and the Niue government introduced a number of measures earlier this year to reduce the size of the government's deficit.
Mr Satyanand says New Zealand and Niue enjoy a special relationship and his visit highlights that.
"It's a matter which I approach with great anticipation. And there are three key words to it: there's linkage, there's culture and there's heritage. And the people who are accompanying the visit involve each of those three things."
Anand Satyanand will also visit Tokelau, the Cook Islands and Samoa later in the year.