Fiji’s tourism sector is experiencing a cautious outlook as the peak season approaches, driven by the anticipated influx of visitors from Australia and New Zealand during winter school breaks. However, Westpac Fiji’s senior economist, Shamal Chand, warns that the forecast for visitor arrivals remains lower than previously expected. In a recent economic update, Chand highlighted the concerning trend of declining tourist arrivals leading into 2025, noting a drop in visitors compared to seasonal norms.
Despite this downturn, visitor numbers are reported to be above pre-pandemic levels, with factors such as recent US tariffs and global economic uncertainties influencing the tourism climate. In March, total visitor arrivals reached 63,842, with notable declines from key markets. Arrivals from Australia decreased by 17.4% to 26,434 and from New Zealand by 16.3% to 10,885, although arrivals from the US showed resilience, increasing by 18.7% to 10,276, possibly linked to new direct flights to Dallas.
Chand expressed cautious optimism, suggesting that similar patterns were seen last year where a weak start eventually led to increased arrivals as the peak season progressed. Observations show that while February typically sees lower tourism activity, an uptick is expected as the peak months approach. The anticipated increase in fares, particularly a rise in departure tax to $200 from August 1, may impact travelers’ decisions; however, the government might contemplate delaying this reinstatement to support the industry.
Deputy Prime Minister Manoa Kamikamica reiterated the government’s commitment to tourism as a vital component of Fiji’s economy, underscoring its role in national development. He emphasized the industry’s resilience and its ability to provide authentic experiences, even in the face of global challenges.
Tourism Fiji CEO Brent Hill shared a favorable outlook despite early-year fluctuations in visitor numbers. With nearly one million arrivals and over 80,000 cruise passengers in the last year, continued infrastructure investment will be crucial in maintaining Fiji’s reputation as a world-class destination.
Infusing hope into the narrative, while challenges persist, vital improvements both in visitor transit and government support signal a pathway for recovery in Fiji’s tourism industry, fostering resilience amidst uncertainties.
The increase in transit passengers, which reached 89,014 in the first quarter of 2025—an 8.6% rise from last year—hints at potential for future growth, suggesting that although immediate circumstances may be tough, the tourism sector is poised for a recovery trajectory in the coming months.
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