The government has encouraged the Fiji National Provident Fund (FNPF) to take the lead in investment, given its substantial investment portfolio, which is approximately $10 billion, and its growing interest in tourism. During a two-day FNPF Board strategy workshop held in Nadi, Deputy Prime Minister and Minister of Finance Prof. Biman Prasad highlighted the challenges currently faced by the industry and emphasized that the FNPF could play a vital role in increasing room supply.
Prof. Prasad stated, “FNPF will play a crucial role in our national effort to add to this additional room capacity, including optimizing current hotel assets and making new hotel investments in the future.” He also cautioned about the need for careful due diligence, noting potential opportunities in Suva and Vanua Levu through the tourism development initiative supported by the government and the World Bank.
He further mentioned that in addition to increasing room capacity, hotels and the overall tourism sector should seek ways to enhance visitor experiences. Referencing the FNPF’s acquisition of shares in Fiji Airways during the COVID pandemic, Prof. Prasad encouraged the Fund to consider strategic investments in Fiji Airports, which he described as needing significant capital and investment to advance further.
“I understand the Fund is already exploring that, and as a government, we will need to support that initiative,” he added. He noted that by holding interests in the airline, airport, and hotels—three key assets in the tourism industry—the FNPF would be better positioned to maximize returns for its members while also contributing to the next phase of development in Fiji’s tourism sector towards achieving Vision 2050 of becoming a prosperous nation.
Additionally, Prof. Prasad suggested two other areas for FNPF to consider investing in: retirement homes and tertiary health care.