FIJI’S economy is on track to grow for the fourth consecutive year in 2025 according to the Reserve Bank of Fiji in its latest Economic Review (for October), but if this growth is driven largely by tourism, it is imploding at the core with trend watchers pointing out that Australians are going elsewhere for their holidays.
“I was looking at how Indonesia is faring with its visitor arrivals this year relative to Fiji,” ANZ economist Kishti Sen said in our email conversation yesterday.
His quick take showed how Fiji fared in terms of costs for the average tourist.
Kishti Sen’s takeaways on Fiji vs Indonesia as tourist destinations:
“Indonesia
– Visitor arrivals for the first nine months at 11.4 million, up 10.2per cent on 2024
– Most are staying at four and five star hotels
– Aussies going there in increasing numbers
– Average spend by Aussies per trip about $US1,750
Fiji
– Visitor arrivals for the first nine months at 735,154, up 0.3per cent on 2024
– Most are staying at four and five star hotels
– Aussie arrivals into Fiji have lost its momentum and tracking sideways
– Average Australian spend per trip about $US2,250.”
Australia is Fiji’s major source market for tourists and a recent report co-authored by Mr Sen observed that growth momentum is weakening in our traditional visitor segment – young families.
“People in the 1–14 years and 25–49 years cohorts accounted for 61.2per cent of all arrivals in 2019,” they wrote in their latest ANZ Pacific Insight.
“But that percentage has steadily dropped to 58.6per cent in 2024 and currently stands at 57.7per cent.”
The trend is captured in the latest RBF economic review, where it noted that while visitor arrivals grew marginally by 0.3 percent to 735,154 in the year to September, supported by visitor numbers from the United States (11.3per cent), United Kingdom (10.6 per cent) and Pacific Island countries (5.0 per cent), declines were noted from Australia (-0.6 per cent), New Zealand (-2.8 per cent) and the Asian markets (-9.7 per cent).
“Don’t take tourists as granted to drive growth,” Mr Sen cautioned. “It’s a case of us shaping up or they ship out leaving us in the doldrum.
“Point being, Fiji must step up to be front and centre of its core customer base. Otherwise, it risks losing the goose that laid the golden egg. Can’t live in past glory. Need to step up and meet competition head on.”
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