A Niue MP says spending aid money on tourist accommodation on the island is a waste.
The New Zealand aid agency, NZAID, is providing funding for tourist housing as part of its plan to help Niue achieve a degree of economic independence.
It is also to replace some of the accommodation destroyed by Cyclone Heta two years ago.
But Opposition MP O'Love Jacobsen says the focus should be more basic needs, such as completing the rehousing of islanders affected by the cyclone.
Ms Jacobsen says the plan to construct tourist accommodation in several villages is a million dollar project that won't work.
"We can't even fill what we have got now so why are we venturing out to start people up in a venture that is ultimately going to fail. And I will put my last dollar on it, this is going to fail."