Several men hoisted Ms Gillard into the air on a ceremonial chair and carried her into the island's open auditorium.
Once inside the leaders of the 15-nation grouping were met by school children singing and a chorus of traditional songs and drumming.
Serious issues
The opening address given by Tuiloma Neroni Slade, the Forum's secretary general, was sombre in contrast.
"The demands of humanity are taking their toll putting stress in particular on the ocean," Mr Slade told delegates.
The challenges of climate change and protecting one of the world's last pristine ocean environments are expected to dominate the Forum's agenda over the coming days.
Trade, regional architecture and crime will also be discussed.
Gender equality
Ms Gillard said she also wanted to raise the issue of gender equality in the Pacific region, and will unveil an aid initiative encouraging female participation in politics.
"I will be focussing on gender equality matters not only because of the basic principle that men and women are equal," Ms Gillard said, pointing out that she is the only female leader taking part in the Forum.
"Gender equality matters because it's one of the keys to unlocking development," she said.
Clinton visit
On the sidelines of the summit, excitement is building ahead of the planned visit later this week by Hillary Clinton, the US Secretary of State and the highest-ranking American official to attend the Forum.
The country's Prime Minister Henry Puna said the trip had not been officially confirmed but he was confident it would go ahead.
Analysts say Mrs Clinton's presence would send a pointed message to China that the US government wants to re-engage with the South Pacific.
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