Fiji’s tourism and travel industries are expected to experience considerable growth in the medium to long term, with visitor arrivals projected to rise by 6.3 percent, reaching approximately 990,000 by the end of the year, just short of the one million mark.
Shamal Chand, a senior economist at Westpac Fiji, highlighted the significance of the upcoming direct 13-hour flight connecting Fiji and Dallas, Texas, set to commence in December, which is anticipated to create new opportunities for the tourism sector. He noted that this new route could potentially bring in an additional 1,000 passengers weekly.
Chand also mentioned that the national airline is keen on exploring new routes to enhance its growth potential. He expressed concern over Fiji’s heavy reliance on tourism, which was starkly illustrated by the drastic economic downturn during the pandemic years when the economy contracted to three-quarters of its usual size.
Despite these challenges, he pointed out that last year’s record growth, serving as a recovery period for the sector, underscores tourism’s dual role as both an asset and a risk. The economist noted that discussions regarding economic diversification surged during the pandemic but faded quickly as tourism began to recover.
Chand emphasized that the tourism sector is undergoing significant changes, targeting new markets while maintaining relationships with traditional partners. He stated that future growth in tourism will rely not only on increasing capacity but also on reaching high-value tourists outside of traditional markets.
He referenced figures from the World Travel and Tourism Council, which predicted the global travel and tourism industry will grow from $11.1 trillion to $16.0 trillion over the next decade, potentially employing around 450 million people worldwide. This growth may enable the sector to account for more than 10 percent of global output by 2034.
Chand concluded that with the expected rise in travel demand, Fiji has the opportunity to capture a larger share of the market by expanding its capacity in the coming decade, particularly since it currently attracts less than 0.04 percent of global tourist arrivals.