August has set a new record for tourist arrivals, further increasing this year’s visitor numbers compared to the same period last year. According to the Reserve Bank of Fiji’s recent economic review, the tourism sector is expected to take advantage of the unexpectedly high number of arrivals.
In August, the total number of tourists reached 94,787, marking a record for this month and elevating the total number of visitors in 2024 to 640,274, which represents a 6.9 percent increase from the previous year. The rise in arrivals was primarily driven by key source markets, including Australia (up 1.8 percentage points), New Zealand (up 1.4 points), and the USA (up 1.3 points), with additional support coming from China (up 0.9 points) and other Pacific Islands (up 0.7 points).
Recent data suggests a promising outlook for the Fijian economy, bolstered by tourism, consumer spending, production across various sectors, and investment activities through August. The Reserve Bank of Fiji stated that the economy is positioned for another year of growth following a robust expansion of 7.5 percent in 2023.
Overall, sector performance has been generally favorable, particularly in gold and timber production. Gold production saw a significant increase of 30.3 percent for the year leading up to August. Additionally, the resumption of pine supply from Kadavu contributed to a rise in annual production of sawn timber (up 14.5 percent) and woodchips (up 5.7 percent).
Headline inflation eased to 5.4 percent in August, down from 6.8 percent in July. As of the end of September, foreign reserves amounted to $3.7 billion, sufficient to cover 6.1 months’ worth of retained goods and services imports, with projections indicating that reserves will remain adequate in the medium term.