Fiji Hotel and Tourism Association, 27 February 2025 – Investment in Fiji’s tourism sector remains strong, with several high-profile tourism projects currently under construction and interest remaining high at what is considered the conceptual stages.
Developments currently underway in the Western, Sun Coast, Central and Northern Divisions reflect investment confidence in an industry that has shown quiet resilience in the face of historical natural and man-made disasters.
From our crude estimates, a little over $150m worth of projects that would have delivered around 600 new rooms were expected to be completed by late 2023 and 80% of these are smaller projects for 90 rooms or less, with 20% expected to deliver over 100 rooms each.
90% of these are now expected to be delivered in 2025.
Almost $900m worth of projects that will deliver a further 800+ rooms that were expected to be completed in 2025 and 2026 are also expected to track into 2027 instead. Of these, 80% are for projects that will deliver 100 rooms or more and 20% are for much smaller inventory.
Not included in these figures are the extensions taking place across the country as resorts use available space and increasing demand to plough back profits into extra rooms from blocks of 10, and up to 40 rooms.
They all have one thing in common that is reported consistently to the Fiji Hotel & Tourism Association hoping to better understand regulatory processes, whether they are new or old hands working in Fiji’s inconsistent business environment; and that is the battle to get development and plans assessed, processed and approved in less than 6 months – regardless of the size of the project.
These projects inject substantial capital from both foreign and domestic investors, that will eventually increase accommodation capacity, create jobs, and boost further demand for supporting industries.
They have a huge ripple effect even before they open for business and contribute directly to the economy through taxes and wages and supplement other supplier income streams through construction material demand, labour skills transfer, transport, food and use of power, water and other services.
Rising costs for construction materials, import duties, cargo delivery delays, and the all too familiar delays with development deliveries affect operational viability and add to inflation. Labour shortages, especially in skilled trades compound these difficulties.
While investors are eager to expand the hospitality and other sectors, bureaucratic hurdles threaten to turn away investment opportunities, particularly when there is a clear need for increased economic diversity that must get through a series of approval processes.
It must be noted at this point that we have made huge inroads in some specific areas that were identified as Fiji’s largest challenges initially to both foreign and domestic investments, which should be used as the most positive outcomes for unlocking potential investments that had been “waiting in the wings”.
These included the speedier processing of work permits for foreigners taking up skilled jobs either left vacant by emigrating locals or becoming available with forays into new technology or industry expansions.
Additionally, we are now seeing the usual first step for any development process requiring Environmental Impact Assessments (EIAs) move from rarely seeing the light of day, to a transparent process that is being turned around by a responsive and communicative agency that understands that developments are not all the same, do not always harm the environment, and that each deserves critical assessment that will benefit the environment, the developer and the landowners where relevant.
So we know it can be done.
Investors looking to enter Fiji’s tourism market face a complex approval process – lengthy procedures, often unclear regulations, and inconsistent policy applications that make it difficult to secure necessary permits.
Compared to other Pacific destinations with more streamlined regulatory environments, Fiji’s system appears unnecessarily cumbersome.
From securing land and financing, with multiple government agencies requiring approvals for land acquisition, environmental impact assessments, development leases and plan approvals, amongst other signoffs; the fragmented process creates uncertainty, makes construction planning difficult and makes project management budgeting a nightmare.
We unequivocally understand the reasons for the compliance structures required from one agency to another but fail to grasp why it would take 6 -8 months for plans to be assessed and approved, or why large printed hard-copy volumes of these plans can get “lost” and require re-submission after months of following up.
Between the Department of Lands, the Department of Town & Country Planning offices and the Municipal Councils; developers, investors, business owners and even domestic builders; all appear to be spending an inordinate amount of time just waiting or following up – for 4 months, for 6 months and if you have to make adjustments – up to 8 months, to get your plans finally approved by all concerned.
We ask the policymakers – do these agencies have sufficient staff with the required skills?
Do they have what they need in terms of resources – equipment, vehicles for inspection, technology for improved productivity, the right management skills, and the right work attitudes?
To progress development, to get projects started, to diversify the economy and build Fiji into the economic powerhouse we want to – are we supporting our people to deliver what they need to?
Could we consider consolidating approvals under a single entity, that would track delays that often hinder projects, allowing developments to move forward with greater efficiency and confidence?
No one is asking for shortcuts that undermine safety, the environment or landowners’ rights. Neither are we asking for processes to be bypassed.
There has been some steady headway into progress that could get improved outcomes through prioritising digital transformation and better productivity understanding.
Allowing real-time tracking of applications, reducing bureaucratic red tape where we can, holding people accountable for their turnarounds and ensuring greater productivity – should be simple measures we hope to achieve.
Many countries have successfully adopted e-governance solutions to fast-track approvals without compromising regulatory oversight, and Fiji should not lag behind in this essential reform for which we can already see very positive outcomes where they have been implemented.
Every delayed project represents lost job opportunities, denied revenue and therefore taxes.
The tourism industry might be our most resilient economic pillar, but resilience should not be mistaken for invincibility as COVID showed us in no uncertain terms. This is all the more reason to push for economic diversification and support the growth of areas like the North.
The time for change is now. Investors are watching, and so are our competitors.
Suppose Fiji is to retain its position as a transformative Pacific leader. In that case, it must act decisively to remove bottlenecks and create a more business-friendly environment through its government agencies becoming more dynamic, productive and confidently aware of the positive impact they can have on the economy.
It is not just the private sector’s job to sustain or grow the economy – there is a huge role that regulatory agencies play in ensuring this can happen.
They can do this by streamlining regulations so that compliance is simpler instead of a burden, embracing technology that can improve approval turnaround and make people more accountable. This would provide more efficient enforcement by building trust and confidence in these regulatory systems which in turn would lead to stable and attractive business environments.
Fiji has the potential, market demand, and investor interest—what’s needed now is the right environment to turn these opportunities into reality.
And a public sector that plays a more conducive role in how the Fijian economy develops sustainably.
Fantasha Lockington – CEO, FHTA (Published in the Fiji Times on 27 February 2025)
Fiji Hotel and Tourism Association
The Voice of the Industry
