Fiji’s tourism and travel industries are expected to experience substantial growth in the medium to long term, with forecasts indicating a 6.3 percent increase in visitor arrivals to approximately 990,000 by the end of the year, nearing the one million milestone.
Westpac Fiji’s senior economist Shamal Chand highlighted that the introduction of a new non-stop 13-hour flight from Fiji to Dallas in the US, scheduled to commence in December, presents numerous opportunities for the tourism sector. He anticipates that this route will contribute around 1,000 additional passengers weekly.
Chand noted that the national airline is also examining new routes to further enhance its expansion potential. However, he expressed concerns regarding Fiji’s heavy dependence on tourism, particularly highlighted by the severe economic contraction during the pandemic when the economy plummeted to three-quarters of its normal size. According to Chand, the record growth last year marked a recovery, showcasing the dual nature of tourism as both a benefit and a risk for the economy.
He pointed out that discussions surrounding economic diversification have gained traction, only to wane as the impacts of the pandemic diminished and tourism began to recover. Chand explained that the tourism sector is undergoing a significant transformation, focusing on new markets while still relying on traditional partners.
He emphasized that future tourism growth in Fiji relies not just on increasing capacity but also on reaching out to high-value tourists beyond conventional markets. Citing data from the World Travel and Tourism Council, he noted that the global travel and tourism sector is projected to grow from $11.1 trillion to $16.0 trillion in the next decade, potentially supporting around 450 million jobs worldwide. This growth suggests that the sector could represent over 10 percent of global output by 2034.
Chand asserted that with the anticipated rise in travel demand, Fiji has the opportunity to capture a more significant portion of this market by expanding capacity over the next ten years, especially given that it currently attracts less than 0.04 percent of global tourist arrivals.