The tourism sector in the Pacific region is encountering a challenging outlook, primarily due to anticipated reductions in global economic growth, which the World Bank projects to slow to 2.3 percent by 2025. This forecast indicates a broader decline in economic performance across many countries, particularly affecting tourism-dependent economies like Fiji.
Fiji has already reported a notable 4 percent decrease in tourist arrivals in the first quarter of 2025, with significant declines from major markets such as Australia, New Zealand, and the United States. This decline contradicts earlier optimistic projections for the East Asia and Pacific region, which had anticipated a growth of 3-5 percent in international tourist arrivals for 2025.
In tandem with these challenges, the World Bank has released a publication titled “Employ Women, Empower the Pacific: A Strategy for Uncertain Times,” which centers on the 11 member countries in the Pacific (excluding Papua New Guinea). The report suggests that increasing female labor force participation could be crucial in mitigating the projected economic downturn. Research cited indicates that closing gender gaps in employment, particularly in higher-paid non-agricultural jobs, could potentially boost GDP per capita significantly—by an average of 22 percent across the PIC-11 countries. The economic gains of augmenting women’s participation could vary widely, with estimates suggesting up to a 30 percent increase in GDP per capita for Fiji.
The report adds that the Pacific Island Countries (PIC-11) are currently underutilizing their human capital, especially among women, whose limited participation in the workforce hinders wage progression and household stability.
In light of these findings, the World Bank recommends that Pacific nations bolster their workforce potential through structural reforms and resilience-building strategies. These measures are necessary to stay aligned with development goals amid global uncertainties, aiming to ensure a more robust economic foundation for future recovery and growth.
The proactive approach suggested by the World Bank, emphasizing women’s empowerment and labor force engagement, illuminates a constructive path forward, presenting hope for enhanced economic resilience in the Pacific amidst tough global economic conditions.
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