Fiji’s tourism industry is still performing below normal

A report in The Fiji Times says that the effect of the renistatement of the public emergency regulations on the tourism industry would be hard to gauge because the industry is still performing below normal expectations, says Fiji Hotel Association president Dixon Seeto.

“With the short stay bookings experienced by the hotels, it would be difficult to tell if the bookings had fallen because the performance of the industry was still far from satisfactory when compared to past years.”

“On top of all this is the fact that most of the hotels and resorts are giving some form of discounts to maintain business and this would go on till 2008,” he said.

Mr Seeto said apart from the occupancy rates and the below normal performace of the industry, the yield for the hotels had fallen significantly.

He said when the emergency regulations were lifted at the end of May, tourist arrivals had just started to pick up because it was the peak season for the industry.

“Suva improved when the level of the travel advisory for Suva dropped,” he said.

While Mr Seeto could not put a figure on the amount of money that could have be lost during the period the emergency regulations were in place, he said it could be a huge amount.

He said for the first five months this year, $0.5million was lost in Fiji National Provident Fund savings from workers in 32 properties because of the decline in business.

Mr Seeto said when the below normal performance of the industry was coupled with the short stay bookings by tourists, this resulted in lost wages and a decline in savings for FNPF for the tourism industry workers.

Last week, the association and the Fiji Islands Visitors Bureau were optimistic the reinstatement of the regulations would do little to hamper their operations.

Bureau chairman Patrick Wong had had said the reactivation of the decree might affect tourist numbers.  He said the revised travel advisories of countries like Australia and New Zealand were a concern but the Bureau hoped to continue with campaigns to pass Fiji off as the safest holiday destination in the region.

Mr Wong said the Bureau was monitoring the situation very closely and though it might affect tourist arrivals, Fiji was still the safest destination.

He said Suva was where the impact of the decree could be most felt as this was where most of the action took place.

He said since most tourist activities happened outside the capital city, the reactivation was not likely to make a major impact on operations.

Mr Seeto had said it was good that there were no roadblocks and there was still hope that tourist numbers would not be affected. He said all tourism operations remained normal.

The Australian and New Zealand foreign affairs ministries have re-issued travel advisories, telling their nationals of the reactivation of the decree since September 6 and are warning them to be cautious when in the capital city.

Nationals of the two countries have been advised to steer clear of public gatherings and political rallies. The interim Government has reactivated the decree after what it claims has been inciting and discrediting comments by ousted Prime Minister Laisenia Qarase and his Soqosoqo Duavata ni Lewenivanua Party.

Report by The Mole