Small tourism businesses in disaster-prone areas are at increasing risk of financial losses.

According to Deputy Prime Minister and Tourism Minister Viliame Gavoka, this has prompted the government to look for tailored insurance options.

These solutions, he said would target villages hosting tourists and small-scale enterprises vulnerable to the impacts of cyclones and other natural disasters.

Gavoka said there was a need to protect smaller tourism operators, particularly in rural and outer island areas, as they play a key role in Fiji’s evolving tourism sector.

The proposal comes as part of ongoing efforts to improve resilience in the tourism sector, especially in the face of increasing risks posed by cyclones and other natural calamities.

Gavoka stated that Fiji’s tourism industry has evolved in recent years.

While Fiji is still known for its sun, sand and sea, an increasing number of tourists now seek to experience local communities with many choosing to stay in community-run accommodation.

Gavoka said small tourism businesses, especially in rural and outer island areas, are exposed to risks during times of disaster, and recognizing this, the government was committed to providing insurance options to protect these businesses from potential losses when disasters strike.

The Minister reflected on the historical challenges the country faced with insurance.

In the 1980s, when Fiji experienced a series of devastating cyclones, the insurance industry withdrew due to the high risks involved, leaving businesses without coverage.

In response, the government intervened, working with the Reserve Bank to set up a system that allowed businesses to carry their own insurance.

Though the global insurance market has since become more accessible, Gavoka acknowledged that there remains a need to tailor insurance solutions for smaller tourism operators in disaster-prone areas.

Gavoka explained that Fiji’s effective cyclone warning system, supported by Japan, allows resorts to evacuate guests to mainland locations, ensuring their safety before a cyclone makes landfall.

With modern communication tools like Starlink now available, communication between remote resorts and authorities has improved.

On the infrastructure front, the tourism sector has also made progresses in disaster preparedness.

Many resorts now have water storage systems that allow them to function for several days in the event of disruptions, while nearly every resort has backup generators to ensure continuous power supply.

This infrastructure resilience, combined with a well-prepared workforce means the tourism industry is in a strong position to weather cyclones and other emergencies.

Gavoka said that despite the challenges posed by frequent natural disasters, Fiji’s tourism industry has consistently shown its ability to recover.

With a strong infrastructure in place and a robust disaster response framework, the industry is well-positioned to continue thriving even in the face of future crises.

However, he stressed that ensuring financial protection for smaller tourism operators remains a priority and the government will continue to work on practical solutions to ensure their long-term sustainability.