Tourism Talanoa: The Second Half

FHTA, 15 July 2021 – Last Saturday, we forgot for a brief 80 minutes about COVID-19 and its terrifying grip on our beautiful island nation.

And oh, how the Flying Fijians put it to the mighty All Blacks!

They started the match with a hiss and a roar but the Kiwis eventually proved steadier and better in the latter stages of the first match.

In the end, it didn’t matter what the scoreboard said. A Tier 2 nation provided a gutsy performance in what was always going to be a tough clash against a Tier 1 nation.

This weekend will see the second Test match get underway and we might want to hit the second half of the match the same way we started last week so that things might come out different.

What was never in any doubt though, was the collective national spirit and unbridled patriotism that was being felt around the country by those who could see the eventful match and by every other rugby-mad Fijian around the world.

If only every Fijian in Fiji could have witnessed it as well. But, that’s another story.

As we enter the second half of the year that is fiscally the start of a brand-new financial year for the public sector; anticipation is building as we look forward to the annual National Budget that will be announced by Government tomorrow.

Fiji, now deep into the second wave of COVID-19 infections which has gripped the nation with almost 12,000 total confirmed cases and 58 deaths since March 2020, is in critical need of a clear pathway out of this crisis.

And many hope that pathway, along with getting 80% of our adult population vaccinated, will be defined in the upcoming budget. Or at the very least provides the needed impetus to see our way through it.

The Fiji Hotel and Tourism Association presented its Budget submission to the Ministry of Economy and is hoping, like many other industries who have presented theirs, that we will get some confirmation that we can plan for a more positive second half.

With some pragmatic outcomes to support industries to survive the current crisis and clear strategies for reviving the economy, we can eventually put the last 16 months behind us.

Far too many businesses have been forced to close their doors during this past year and we know too well the effect this has had on increasing unemployment numbers and the subsequent impact on families and livelihoods.

SME’s have been the most impacted and we fear many may have closed their businesses for good.

What is not always recognised is that SME’s make up a large proportion of tourism and other critical industries, and the impact they have on our economy. They play a crucial role in providing job opportunities to the different strata of society and this ensures the flow of money across these many levels.

The tourism industry must be supported by a viable national airline, quality infrastructure and communication networks and globally recognised accommodation brands.

But that is not all a popular holiday destination like Fiji requires to be sustainable and successful, even though we are naturally blessed with over 300 beautiful islands and an abundance of sunshine and friendly people.

We also need many categories of accommodation providers to suit the different budget demands and we need as many varieties of activities and entertainment options located in and around Fiji’s beautiful locations to suit a variety of discerning visitors.

And with this, we need to have a range of transportation options so visitors can get around, and let’s not forget the need for suppliers of food, beverages, fresh produce and training courses, amongst many others.

Hence, the importance of SME’s.

Last year’s budget saw the welcome rescinding of the Service Turnover Tax (STT) and reduction of Environment & Climate Adaptation Levy (ECAL) to 5%, along with the reductions in fiscal and import duties.

However, these initiatives could not make the intended impact they might have, without international visitors while borders remained closed.

So, they need to remain to have the intended impact.

Since its introduction in the 2017-2018 financial year, ECAL collections have totalled F$270.2M of which FJ $255.9 has been used to finance 102 projects that addressed issues like climate change, environmental conservation, and infrastructure. ECAL was largely collected from tourism operators.

As the earner of 46 percent of the country’s total Gross Domestic Product in 2019, tourism has taken an enormous hit that has not just been felt economically.

The bigger impact has been felt and continues to drastically impact the communities that tourism businesses operate from, because of tourism’s large, multiplier effect.

With increased unemployment and lower demand for materials, resources, and fresh produce; there is also reduced economic activity in the communities where tourism is the key employer because of lower or lost incomes.

With the introduction of new traffic light systems, travel corridors and any travel bubbles that may henceforth define what our future tourism outlook might look like, the focus on vaccination programs remains key for Fiji like many other countries.

So, we sincerely hope that the Ministry of Health gets a well-deserved increase in its allocated budget to deal with its now much higher demand on service and operational activities.

For the tourism sector, FHTA has identified the need for critical financial support for businesses to be reopening-ready, prepare to access new markets, consider business diversifications and improve online-commerce capabilities.

Every business regardless of size must be ready to access their staff to refresh and retrain them in the new COVID safe service requirements and be prepared to restock their bars and restaurants, upgrade and service any transport fleet, refurbish rooms and lobbies, mend seawalls and empty swimming pools, trim trees and landscape overgrown gardens.

Fiji will be no different to many other destinations rethinking strategies and reviewing our thinking about where we expect changes might come from so that we grab opportunities to capture new markets if and when presented.

And without any previous experience to base new strategies on, we should consider that the world’s most developed countries have made errors too when addressing or trying to contain this ever-evolving virus. Many of whom are seeing their second or third waves.

We are struggling as well to correctly judge how far ahead to plan for. Whether to start slow and build momentum or fully open with all hands on deck. To trust current trends and focus on traditional markets that may themselves not be ready for us, or take chances on new markets with our rapidly reducing resources.

The world we knew is almost unrecognisable now.

For now, caring about not letting more people die, stopping the spread and vaccinating should be the number one priority for the planet and not just Fiji.

In unsteady waters, we need a steady beacon to guide us back.

Then we can forget the scoreboard and start again.

By: Fantasha Lockington – CEO, FHTA (Published in the Fiji Times on 15 July 2021)