Fiji Hotel and Tourism Association, 13 February 2025 – Fiji’s GDP has long been shaped by key industries, with tourism playing a major role, contributing between 12.6% and 13.7% in the years leading up to 2019.
Like any economy reliant on external markets, Fiji has weathered global financial shifts, a plethora of natural disasters – some often coming directly after one another, as well as changing consumer trends. However, none of these disruptions have been as severe as the COVID-19 pandemic.
When international borders closed and travel came to a standstill, GDP took an immediate and significant hit, with direct tourism earnings plummeting to just FJD 9 million in 2020.
The economic fallout was swift and widespread.
Yet, Fiji’s recovery has been nothing short of remarkable.
Our collective earnings may seem small compared to our larger neighbours, but scale is all about perspective
For tourism in Fiji, the numbers matter because of the significant trickledown effect the industry has and its impact on livelihoods, businesses, and communities.
By 2023, GDP had regained its footing, with the tourism sector alone contributing 13.2%, amounting to a Direct Tourism Gross Value Add of FJD 1.3 billion—a testament to the country’s resilience and adaptability in an ever-changing global economy.
But recovery alone is not enough. With heightened demand, comes the need for expansion and growth.
As we look to 2025 and beyond, the challenge is no longer just about bouncing back; it’s about ensuring long-term fiscal sustainability without compromising the very elements that make Destination Fiji an aspirational destination; the positive impacts of which always boosts the economic repercussions for the entire country.
The global tourism landscape has become increasingly competitive, with destinations across the Pacific refining their offerings to attract the same pool of travellers seeking sun, sand, and sea, and these days – all the exciting activities that will make those Instagram accounts sing.
Fiji’s advantage lies not in sheer numbers but in the distinctiveness of its visitor experience.
Australian tourists alone spent approximately FJD 3.7 billion in Fiji between July 2023 and June 2024, reinforcing our position as a preferred destination.
But this success comes with a pressing question: how do we maintain our competitive edge without resorting to price wars that ultimately erode profitability and service quality? Will this conundrum worsen or eventually sort itself out once we add 500, 800 and then 2,000 more rooms?
The answer lies in elevating value over volume—curating experiences that not only meet but exceed visitor expectations, ensuring that Fiji remains synonymous with world-class hospitality, authenticity, and the kind of exclusivity that justifies a premium.
Luxury resorts, authentic cultural interactions, and eco-tourism initiatives add value to the visitor experience and encourage higher spending per traveller. More importantly, it ensures that more of the tourism dollar travels deeper into other regions and further into our communities.|
Investments in infrastructure such as improving airport capacities in Vanua Levu, flight and ferry service frequencies could also expand our regional reach, would enable adventurous visitors to explore beyond the current main tourism corridors.
Rising global inflation presents a dual challenge for the industry. On one hand, higher costs of goods, services, and wages could push prices up, making Fiji a less affordable destination for budget-conscious travellers.
On the other, inflation within our industry—through rising wages and operational costs—must be managed carefully to maintain competitiveness and allow the current practice of reinvesting back into the business to lift and freshen products and services.
Perhaps rather than fearing inflation, we should harness it strategically.
If costs are rising, so too must the perceived value of a Fijian vacation.
This means investing in education and workforce training to enhance service quality and upskilling staff to ensure we are reflecting the changing demand for travel that includes capitalizing on the demand for sustainable tourism, delivering expectations on safety both on land and water, and nationally accepted protective frameworks for our environment that reflects our pride in the diversity of our marine life and lush ecosystems.
While tourism revenue remains concentrated in Viti Levu, there is significant potential to spread economic benefits further.
Congestion and overcrowding while minimal by world standards require careful consideration to ensure that we do not get to the levels of other destinations currently struggling with this.
Infrastructure development must go hand in hand with sustainable tourism planning that is balanced with its viability and the expectations of the communities it will impact.
Destinations like Vanua Levu, Taveuni, and the Lau Group remain largely untapped, but accessibility continues to be a major barrier.
Expanding airport capacity in these areas could open new avenues for tourism development, driving visitor spending and creating much-needed job opportunities in the North and outer islands.
This in turn, would help bridge the economic disparity between regions.
While we welcome the increasing demand for Fiji as a travel destination, with our current room capacity plateauing, growth in tourist arrivals is expected to also plateau despite reaching expectations last year.
As investors seek to establish themselves in the industry, they should be encouraged to explore opportunities beyond the traditional tourism hotspots, supported by government initiatives that facilitate this growth, along with a far wider understanding than current that its regulatory agencies must be better enablers of development related processes and approvals.
The less-travelled regions of Fiji offer immense potential, and diversifying development across these areas would not only alleviate pressure on existing hubs but also enhance the overall visitor experience.
Beyond economic considerations, tourism owes its fundamental success to our people. There are pristine beaches and amazing underwater marine life on paradise like islands scattered across the globe.
But they don’t have our people, our cultures or our natural hospitality and warmth.
Visitors come to Fiji for more than just our landscapes; they come for the warmth and authenticity of our people.
We also recognise through long experience that empowering communities to be stakeholders—through locally owned businesses, cultural experiences, and community-based tourism—creates a more inclusive and sustainable industry.
A satisfied traveller becomes an ambassador, spreading the story of their unforgettable Fijian experience, with social media expanding positive experience communication exponentially to reach far wider audiences.
Ensuring that every visitor leaves with a positive impression—whether through seamless service, cultural enrichment, or environmental consciousness—translates into long-term industry sustainability.
While the industry has shown remarkable resilience, rebounding strongly after the challenges of recent years, we understand the need to continue to ensure that any growth is both sustainable and beneficial to all.
By improving service standards, refining guest experiences, introducing more innovative, high-value packages, and offering a range of price options, we can maintain our competitiveness without compromising our values or our environments and our long-term commitments to the communities that rely on us.
This includes focusing on improving local sourcing—whether for food, materials, or talent—which go a long way to reduce costs while supporting Fijian businesses and communities.
After all, Fiji is more than just a destination; it is an experience that can create a feeling of belonging, a magical story waiting to be told.
We have successfully put ourselves on millions of people’s Bucket List, so it is time to push on those boundaries that will expand our offerings and allow more of our people to be part of the tourism story.
Fantasha Lockington – CEO, FHTA (Published in the Fiji Times on 13 February 2025)
Fiji Hotel and Tourism Association
The Voice of the Industry
