Fiji’s tourism and travel industries are expected to experience considerable growth in the medium to long term, with visitor arrivals anticipated to increase by 6.3 percent, reaching approximately 990,000 by the end of the year, close to the one million milestone.
Shamal Chand, a senior economist at Westpac Fiji, highlighted that the introduction of a new 13-hour non-stop flight from Fiji to Dallas, USA, starting in December, will create numerous opportunities for the tourism sector. This new route is estimated to generate around 1,000 additional passengers each week, and the national airline is also investigating new routes to enhance growth prospects.
Chand expressed concerns about Fiji’s heavy reliance on tourism, which was starkly highlighted during the pandemic years when the economy contracted significantly. However, he noted that last year’s remarkable recovery was largely driven by tourism, emphasizing that the sector serves as both an asset and a potential risk.
He pointed out that discussions around economic diversification have fluctuated, diminishing as the impacts of the pandemic eased and tourism rebounded. The tourism sector is currently undergoing a significant transformation, targeting new markets while maintaining traditional partnerships as its foundation.
Future growth in tourism, according to Chand, will hinge on expanding capacity and appealing to high-value tourists beyond traditional markets. He referenced projections from the World Travel and Tourism Council, indicating that the global travel and tourism industry is expected to grow from $11.1 trillion to $16.0 trillion over the next ten years, generating approximately 450 million jobs worldwide, potentially accounting for over 10 percent of global output by 2034.
With the predicted surge in travel demand, he noted that Fiji could secure a larger share of the market by expanding its capacity over the next decade, especially since it currently draws in less than 0.04 percent of global tourist arrivals.