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TOURISM REVENUE PROPS FIJI ECONOMY
By Dionisia Tabureguci
As the mercury falls in Fiji's exports revenue barometer, the unprecedented growth in the tourism industry could not have come at a better time.
Not only is the business and some related industries doing well, the foreign exchange being generated is also providing the much needed plug in Fiji's external reserves, which authorities expect would begin to decline this year.
And with another record international tourism year being recorded by the World Tourism Organisation, where international tourism grew by 5.5 percent in 2005 and in Oceania, by 4 percent, the local industry believes that Fiji has yet to see the apex of this good performance.
Fiji Visitors Bureau chief executive officer Viliame Gavoka predicts the local tourism business would grow at seven to nine percent for the next five years and in order for the country to fully capitalise on this growth, it would need to tie up some loose ends.
"Growth should continue strongly down the years. Our ability to cope will be a major factor. For instance, are we investing quickly enough to properly meet the growth?
"And we are not only talking about hotels. It includes airports, jetties and wharfs, roads, water, telecommunications, electricity, and so on," Gavoka says.
"From our main markets, we have hardly scratched the surface, so potential is still vast. Within Fiji, tourism is still mainly centred in three provinces out of the 14 so there is still lots of room for growth."
The successful rise of the tourism business underscores the optimism of those who view it as a resilient industry where Fiji is concerned, is bound to spring back quickly after a social unrest.
The last turmoil in 2000 naturally resulted in a major setback where tourism arrivals fell as foreign embassies here issued travel advisories against Fiji.
In 1999, the industry had aimed to better that year's record arrivals of 409 955 tourists.
But this was not to be. The George Speight led civilian unrest in 2000 slashed that figure and the number of visitor arrivals to Fiji dropped to 294,070.
Tourism earnings before 2000 was hitting over F$500 million, according to the Fiji Bureau of Statistics figures.
But in 2000, earnings had slid to F$387.2 million.
Regarding the country's export earnings, sugar and garment were doing well at the turn of the century. Sugar had raked in over F$200 million in 2000 while the garment industry was fetching $332.9 million in foreign exchange.
Five years on, both garment and sugar exports, major components of foreign reserves earnings, are undergoing changes in their respective markets which the Reserve Bank expects would lead to some economic shocks.
But the bleak scenario is somewhat offset by the quick recovery of the tourism business after 2000.
"We are pleased that tourism contributes in a big way to Fiji's economy. The growth in visitor arrivals has been very encouraging: 8 percent in 2003 over 2002, 18 percent in 2004 over 2003 and around 9 percent in 2005 over 2004. Some 550,000 tourists visited Fiji in 2005," says Gavoka.
"These types of numbers are creating huge demand for accommodation, leading to a furious pace of construction for of hotels never seen in our part of the world. Average hotel occupancy for 2005 was at 80.4 percent, which is quite attractive for investors," Gavoka adds.
This boom in figures is reflected by the reality on the ground and it may be likely that tourism is becoming a very serious business for some.
"Some big names are now in Fiji, such as Sheraton, Westin, Shangri-la, Warwick, Outrigger, Sofitel, Holiday Inn, and soon to open are Hilton, Marriot, Radissons and Intercontinental," says Gavoka.
"Others are on the drawing board. The existing operations are either adding rooms and new offerings or conducting major renovations, lifting the range of products to a very broad based clientele. Integral to this is the growing airline capacity which up until now exceeds the room supply on the ground. All in all, it is a very healthy situation for tourism and it should grow at seven percent or nine percent for the next five years or so." The interest in the tourism business in Fiji is also reflected in data gathered by the Fiji Islands Trades and Investment Bureau.
In its report for the quarter ended December 2005, FTIB had registered 152 investment projects and of that, 92 were investments in tourism while 50 were services related.
One big name that recently opened a major extension to one of its hotels is Warwick International.
Two years ago, its president Richard Chiu was in Fiji to open a new Chinese Restaurant at Warwick's Naviti Hotel, along the Coral Coast. At the occasion, he also announced plans for a 100-room extension for Naviti, as well as an intention to build a new hotel in the adjacent property.
Chiu had a vision which drove his renewed push into the region. He believed that, led by Fiji, the region would become the tourism world's "last frontier", a destination coined with clean environment, natural beauty and friendly people.
In February this year, he was in the country again to open the now enlarged Naviti as well as to announce a major extension plan for Warwick resort, which is a five-minute drive away from Naviti.
Despite the occasional political spasms plus the upcoming national elections, some are optimistic that there will be no volatile situations to disrupt the already steady progress being made so far.
"We are pleased that the general elections will be over in May, before the peak season from June to November kicks in. The democratic process is alive and well in Fiji, major institutions are strong, so there is really no need for concern," says Gavoka.
"I believe in terms of anxiety, the general election will be like the Y2K phenomenon in 2000."
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