Fiji’s tourism industry faces stiff competition from other popular destinations such as Indonesia and Thailand.

Asian Development Bank Senior Economic Officer, Isoa Wainiqolo says Fiji’s projected economic growth of 2023 was led by tourist arrivals, mainly from Australia and New Zealand.

Wainiqolo says global inflation and tightened spending in these source markets, as well as attractive offers from Asian and regional competitors, will provide a huge challenge for Fiji.

“When Fiji opened its borders in December 2021, we attracted 15 percent of Australia’s total outbound tourists while Bali, Indonesia, and Thailand were still closed. When both countries opened their borders around June last year, it changed the dynamics of the tourism sector, and by December last year, Fiji’s share of Australian outbound tourists decreased to five percent, whereas Bali returned to pre-pandemic tourist levels.”

Deputy Prime Minister and Minister for Tourism, Viliame Gavoka says the industry must not be complacent in regards to the Australian and New Zealand markets.

“Their economies will be up against some headwinds this year, which may affect their disposable income that translates to travel. We need to continue to be aggressive in marketing to those destinations.”

The ADB’s latest economic report states that Fiji’s economic outlook is boosted by plans to increase arrivals from North America with Fiji Airways as well as the resumption of direct flights to Tokyo and Hong Kong.