Fiji Hotel and Tourism Association, 8 August 2024 – Fiji, our stunning island nation, saw a noticeable jump in inflation from 5.8 percent in May to 6.7 percent in June.
This increase was mainly due to higher costs for essentials like food, transportation, and housing.
Despite this, the Reserve Bank of Fiji (RBF) predicts that inflation will start to ease later in the year, with a forecasted rate of around 4 to 5 percent.
Even with the rise in inflation, Fiji’s economy appears robust.
This is thanks to strong consumer spending – as an example the phenomenal $1.25bilion in remittances last year that is expected to continue this year which has supported thousands of families, as well as increased visitor arrivals, and improved disposable incomes on the back of the 7-20% increases in salaries and wages which will see a further rise with the national minimum wage going up from this month with another increase in April next year.
Although investment in the country is currently slow pending improvements in infrastructure planning and approval processes; the new fiscal year commencing August with the 2024-25 National Budget is expected to kickstart economic growth with some promising measures.
Amidst this economic stability, Fiji’s tourism sector has continued to break records, evidenced by a 7 percent rise in visitor arrivals during the first half of the year.
This growth is being used to review and enhance a broader industry shift towards sustainability, including the adoption of electric vehicles (EVs) and renewable energy.
By embracing these green technologies, Fiji is not only supporting environmental stewardship but also enhancing its reputation as a top destination for eco-conscious travellers.
The global push to cut carbon footprints is growing as more people realize the urgent need to fight climate change, with many unable to do very much in their own home countries, that an aircraft ride across the seas might add further guilt to needing to do more and therefore look for where they really can make a more positive difference.
Electric vehicles (EVs) are moving to the forefront of this change, offering a cleaner option compared to traditional fuel or gas-powered cars since they produce no tailpipe emissions.
This move is especially important as global agreements like the Paris Agreement call for major reductions in carbon emissions, although some might argue that Fiji contributes a tiny fraction in comparison to larger economies – we continue to push towards doing things better.
In the tourism industry, which has always had a far larger environmental impact, adopting EVs is a significant step toward meeting these global goals, albeit in incremental steps at this stage. The expectation is that with added incentives from government and development partners, we can expect the transport segments to embrace this more strongly soon.
Research tells us that today’s travellers are increasingly looking for eco-friendly choices and prefer accommodation options that show a commitment to green practices both in and around the resorts, as well as embracing greener technology options in transport, power generation and energy-saving measures.
In response to this growing demand, businesses in Fiji are increasingly incorporating electric vehicles and charging infrastructure into their operations or planning for this in their budgeting and expansion endeavours.
The benefits apart from the reduced carbon footprints and environmental advantages, include the eventual reduction of overhead costs, quieter experiences, tax benefits for now and better resale values.
But the transition to electric vehicles (EVs) poses significant challenges for hotels in, particularly for smaller establishments that struggle with the financial burden of large scale investments.
In addition to the high initial costs, there is a notable lack of technical expertise and specialized support services for EV maintenance, which are essential for the successful integration and operation of electric vehicles.
This gap in technical skills and infrastructure can hinder the maintenance and efficiency of EV fleets, further complicating the move towards sustainable transportation solutions.
To support this transition, Government has introduced various financial incentives, such as tax breaks and subsidies for purchasing EVs and installing charging infrastructure.
Additionally, supportive regulations aim to streamline the process and encourage the integration of EVs within the tourism sector.
But as we’ve noted quite often before, when developing island states like Fiji make moves to align with sustainability goals, usually because we have been provided access to green funding support, it does so without the required infrastructure, technical knowledge and other supportive mechanisms in place, even if it makes proactive plans to prepare for it.
The upskilling of the workforce that will be responsible for servicing and supplying parts for EVs must also be planned for, as does the faster roll-out of the infrastructure requirements that larger transport models will require in terms of power grid support.
More in-depth and long-term planning must be considered for the eventual disposable of vehicles that are expected to be replaced – also done with clear consideration for the environment when for example around 50,000 hybrid cars get dumped because their batteries are too expensive to be replaced, or the gas-guzzling larger vehicles get abandoned for the smaller, quieter EVs.
But in the meantime, tourism is embracing the trend.
Among the notable examples of hotels successfully integrating electric vehicles into their operations is the IHG Group of Hotels, which has made significant strides in this area.
The group has introduced several EVs to their fleet, showcasing their commitment to reducing emissions and supporting sustainable travel options.
The benefits observed include enhanced guest satisfaction and a stronger market position as a leader in sustainability.
Similarly, Rosies Tour Group has recently announced exciting changes to their fleet, incorporating EVs as part of their commitment to greener travel options, to sustainability and setting a positive precedent for the hospitality industry.
As hotels in Fiji consider integrating renewable energy sources for EV charging, they are making a broader commitment to sustainability. Evaluations of options like solar and wind power aim to align EV adoption with comprehensive environmental stewardship.
These are some of the areas that pioneers taking the first steps into changing entire fleets must work through.
Government incentives, such as subsidies and tax breaks, have been crucial in managing the financial burden of this often large and costly transition, making renewable energy a more attractive option.
We envision a tourism sector that not only adopts green technologies but also prioritizes the preservation of natural resources, positioning Fiji as a leader in eco conscious travel and ensuring its natural beauty endures for future generations, and this can take many forms in business.
Fiji’s National Sustainable Tourism Framework (NSTF) places the country at the forefront of sustainability efforts that can provide a strong platform for the direction that tourism must take if it intends to survive.
The NSTF represents a comprehensive approach to integrating sustainability into tourism practices, setting Fiji apart as a pioneer in eco-friendly tourism.
This framework provides a structured path for tourism businesses and stakeholders to follow, ensuring that sustainability is embedded into every aspect of their operations.
The success of this framework depends on the collective commitment of the industry, local communities, and Government bodies.
It requires ongoing support and collaboration to uphold and advance sustainability goals and this support should translate into how we can continue to look at every aspect of embracing and being better prepared for new technology, as well as how we must eventually adopt best practices to manage the waste that follows our discarding of older technology.
By fostering a culture of environmental responsibility and encouraging active participation from all stakeholders, Fiji can maintain its leadership position in sustainable tourism.
Being future-fit also requires that we deal with the fall-out from what we no longer need later.
Fantasha Lockington – CEO, FHTA (Published in the Fiji Times on 8 August 2024)
Fiji Hotel and Tourism Association
The Voice of the Industry
