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The small island nation of around 1600 people is bustling this week with tourists and visitors who have flown in from as far as Europe and North America.
Mary Williams and her partner are on holiday in Niue and have travelled all the way from their home in Belgium.
While they were surprised to learn that tens of thousands of Niueans have settled overseas, Ms Williams says it's exciting to witness the strength of Niuean culture maintained on the island.
"I'm glad to see that this community and this island nation has really found a way to bring its people back and to keep these things alive."
There are only two flights a week into the island and peak season for tourism hasn't even begun yet.
But the festival, which takes place every two years, has been timed specifically to encourage more visitors in during Niue tourism's shoulder season.
The Acting CEO of Tourism, Saluma Hunt, says she was hoping to see a significant increase in the island's population this week.
"Feeling really excited actually and being in the middle of it all, it's so exciting. We expect quite high numbers to be around but this is a good introduction to the high season."
The festival activities include music, theatre, dance, visual art exhibitions, carving workshops, Poetry events and more.
The events feature local participants as well as overseas artists like Niuean artist Sarah Magaoa, a teacher from South Auckland who is showcasing some of her artworks this week.
She says it feels good to come home and give back to her island.
"Because I was raised here on the island, I went overseas to do training and stayed on to work. Coming home and bringing back what I do makes me feel good. You know, that I'm able to return something back to the island."
While her work is on display in the main town centre, other exhibitions are taking place all across the island in an effort to involve more remote villages.
Renowned Pacific artist John Pule has now resettled back in Niue and is exhibiting his artwork inside his home in the village, Liku.
He says many of the art works in the festival are a great platform to tell stories about Niue people and their cultural heritage.
"I wanted to share my art and my poetry with my people and having the festival is a chance to kind of share it as well. And [people] can see all these amazing, remarkable resuscitations of knowledge being used so that, you know, they don't just kind of fade away."
At the official opening, Premier Toke Talagi emphasised that the Arts and Cultural festival was more than just art and dancing, but a way to show the world what Niue is about.
"This is what this is about, it's not about the dancing necessarily although that's an important part of our culture, it is about the way we live, the way we think, the way we do things. Niue, we think, is a unique place and it's our slice of paradise and I hope you enjoy yourselves here."
The festival will end with a finale showcase on Thursday evening.
