Tourism in Fiji has experienced a slower start in 2024, with visitor arrivals falling by 3.8% during the first two months. The Reserve Bank of Fiji attributed this decline to fewer visitors from Australia and New Zealand, despite witnessing an increase in arrivals from other Pacific Island countries.
Governor Ariff Ali noted that, while tourism may be experiencing a downturn, various resource sectors and overall demand showed robust performance through February. The country has seen strong domestic value-added tax (VAT) collections and an uptick in consumption loans, driven by remittances and rising incomes which indicate positive consumer spending.
In terms of investment, increased loans and the number of building permits suggest a recovery in investment activity. Challenges remain, as global trade tensions and inflation could potentially impede growth. Ali emphasized that despite these challenges, the economy is forecasted to grow for the fourth consecutive year.
As inflation rates recorded a decrease to 1.4% last month—significantly impacted by lower vegetable prices following the December 2024 floods—Ali pointed out that banking liquidity remains high at $1.9 billion as of March 26, which supports low interest rates and ongoing economic activities.
In comparison, July saw a positive turn for tourism in Fiji, with the Reserve Bank reporting 98,332 arrivals, the highest for that month and a 6.7% increase compared to the same period in 2023. This turnaround in visitor numbers, coupled with strong consumption and rising incomes, could hint at a resilient economic climate moving forward.
As the economic landscape continues to evolve, monitoring developments and adapting strategies will be crucial in navigating the challenges and leveraging opportunities for growth in Fiji’s tourism and overall economy.
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