The Fijian government has challenged the Fiji National Provident Fund (FNPF) to take the lead in investment efforts, leveraging its substantial investment portfolio, which amounts to approximately $10 billion, and its growing involvement in the tourism sector.
During a two-day strategy workshop for the FNPF Board held in Nadi, Deputy Prime Minister and Minister of Finance, Prof. Biman Prasad, emphasized the need to address the capacity constraints currently affecting the industry. He highlighted that the FNPF could significantly contribute to increasing room capacity by optimizing existing hotel assets and investing in new hotel developments.
Prof. Prasad stated, “FNPF will play a crucial role in our national effort to add to this additional room capacity,” while also noting the importance of conducting thorough due diligence, especially regarding potential opportunities in Suva and Vanua Levu, as part of the Government and World Bank’s tourism development initiative.
He further stressed the need for the tourism industry to enhance visitor experiences in addition to increasing room capacity.
Touching on the FNPF’s recent acquisition of shares in Fiji Airways during the COVID-19 pandemic, Prof. Prasad mentioned that the Fund should also consider strategic investments in Fiji Airports, which he noted is in need of significant capital and investment for future growth.
“The Fund is already exploring that, and we as a government will provide support,” he remarked.
By engaging with the airline, airport, and hotel sectors—three critical components of the tourism industry—FNPF is positioned to better maximize returns for its members while simultaneously aiding the next phase of development in tourism, in line with the Vision 2050 goal of transforming Fiji into a wealthy nation.
In addition, Prof. Prasad proposed that FNPF consider expanding into retirement homes and tertiary health care as potential investment avenues.