Fiji’s tourism and travel sectors are expected to experience substantial growth in the medium to long term, with a 6.3 percent increase in visitor arrivals projected, resulting in approximately 990,000 visitors by the end of the year, just short of the one million milestone.
According to Shamal Chand, a senior economist at Westpac Fiji, the introduction of a new 13-hour non-stop flight from Fiji to Dallas, Texas, starting in December, is expected to greatly enhance prospects for the tourism sector by bringing in an additional 1,000 passengers each week.
Chand noted that the national airline is also considering new routes to further boost growth opportunities.
Despite this promising outlook, he pointed out that Fiji’s heavy reliance on tourism raises concerns, as highlighted by the severe economic downturn during the pandemic, when the economy shrank to about a quarter of its normal size.
He explained that while the previous year’s recovery was fueled by tourism, it also underscored the sector’s dual nature as both a strength and a vulnerability.
Conversations regarding economic diversification have surged only to dissipate as the impacts of the pandemic lessened and tourism began to recover.
Chand remarked that the tourism sector is undergoing a significant transformation, targeting new markets while continuing to depend on traditional partners.
He emphasized that future growth in tourism would rely not only on increasing capacity but also on reaching beyond established markets to attract high-value tourists.
Referencing figures from the World Travel and Tourism Council, he noted that the global travel and tourism industry is projected to grow from $11.1 trillion to $16.0 trillion over the next decade, providing employment for around 450 million people worldwide.
This expansion indicates that the sector could represent over 10 percent of global output by 2034.
With a forecasted rise in travel demand, Fiji has an opportunity to capture a larger share of the market by enhancing its capacity in the coming decade, especially considering it currently attracts less than 0.04 percent of global tourist numbers.