Fiji’s Tourism Surge: What’s Driving the Boom?

Fiji’s tourism and travel industries are expected to experience substantial growth in the medium to long term, with visitor arrivals anticipated to rise by 6.3 percent to 990,000 by the end of the year, nearing the one million milestone.

According to Shamal Chand, senior economist at Westpac Fiji, the new 13-hour non-stop flight connecting Fiji and Dallas, set to launch in December, presents numerous opportunities for the tourism sector. This new route is expected to welcome approximately 1,000 additional travelers weekly.

Chand noted that the national airline is also looking into further expanding its route options to enhance growth prospects.

While these developments are promising, Chand expressed concerns about Fiji’s significant dependence on tourism, highlighting the severe economic contractions during the pandemic when the economy shrank to three-quarters of its normal size.

He pointed out that last year’s record recovery was driven by tourism, demonstrating the sector’s dual nature as both a blessing and a potential risk. Discussions surrounding economic diversification surged but quickly diminished as the pandemic’s effects lessened and tourism rebounded.

Chand emphasized that the tourism sector is transforming, targeting new markets while traditional partners continue to support it.

He stated that future tourism growth will rely not only on increasing capacity but also on reaching beyond conventional markets and attracting high-value tourists.

Referencing data from the World Travel and Tourism Council, Chand projected that the global travel and tourism industry could grow from $11.1 trillion to $16.0 trillion in the next decade, potentially employing around 450 million people worldwide.

This growth could mean the sector might represent over 10 percent of global output by 2034. With the expected rise in travel demand, Fiji has the opportunity to secure a larger slice of this market by expanding its capacity in the coming decade, particularly since it currently garners less than 0.04 percent of global tourist arrivals.