Tourism to Fiji strives to survive

A report in the Fiji Times this morning says that for many in the tourism industry, last year was supposed to become one of the most memorable in the industry’s history as the year that Fiji tourism would achieve its target of becoming a billion dollar industry, and for the first three quarters of last year, despite obstacles such as the introduction of the bed tax, it seemed the industry was going to achieve its goal well ahead of time.

That dream of being one of the ‘big boys’ in global tourism foreign exchange earnings came to an end though when the military began its campaign on December 5, with the industry practically collapsing with occupancy rates plummeting and employers left with no option but to begin lay-offs and reduce working hours.

With more than 50,000 people either directly or indirectly dependent on tourism, the grassroots communities felt the full brunt of the industry’s decline adding one has just has to walk into the nation’s major resorts and the effects will be clearly visible empty foyers, restaurants, bars and a lot of rooms on offer at very cheap rates.

At handicraft markets usually bustling with tourists, vendors are these days praying that they can earn a few dollars in a day and within days of the military takeover, employees were laid off, working hours were reduced and many were provided with options of taking owed leave or going on leave without pay.

All accommodation, airline fares and tour operations were slashed by about 40% , making Fiji one of the cheapest destinations on the market, with the majority of Fiji’s hotels and resorts reportedly averaging an occupancy rate of about 20% to 40% of the rates experienced in previous years.

Adding to the damage are the negative travel advisories Fiji continues to receive from foreign governments, but despite the slowdown, industry stakeholders have maintained the goal of transforming tourism into a billion dollar industry by the end of this year, however, they are well aware that achieving this objective is a daunting task that needs enormous commitment, dedication and resilience.

There is one thing for certain, industry stakeholders are united and more determined to ensure Fiji tourism is lifted to its former glory within the next few months.

Taking heed of the call by Fiji Visitors Bureau CEO, Viliame Gavoka for hoteliers to forget the past and work for the future, the industry stakeholders have risen and taken up the challenge, with on December 20, the Tourism Action Group (TAG) launching a recovery campaign worth $5million.

Divided into three phases, the first phase of TAG’s promotional campaign worth $1.2million is targeted at Fiji’s primary tourism markets New Zealand and Australia, with TAG chairman Damend Gounder saying that the promotional committee was confident that proper funding would allow visitor arrivals to bounce back and normalise by June.

Mr Gounder said they were overwhelmed by the response and support offered by all segments of the industry, with the industry also receiving another boost when military commander, Commodore Voreqe Bainimarama halted the proposed Value Added Tax increase from 12.5% to 15% on December 29.  Mr Gounder welcomed the announcement saying that it would help in the recovery and it would give visitors something to look forward to as they were guaranteed healthy savings on their holidays.

Fiji Islands Hotel and Tourism Association President Dixon Seeto said by the third quarter of last year, foreign exchange earnings from tourism had exceeded $830million and all hoteliers were devoted to the industry’s resurrection, adding that since the first phase of the recovery campaign began after Christmas, spirits were high and everyone was confident of doing exceptionally well.

Mr Seeto said with 70% of visitor arrivals coming from New Zealand and Australia, if the promotional campaigns were successful, Fiji tourism would be well on track.

Special Fiji Report from the Fiji Times by The Mole