In 1984, Fiji’s growing tourism industry gathered at the Regent of Fiji Hotel for its annual convention, amid warnings from government about the sector’s internal divisions.
According to an article published by The Fiji Times on July 7 that year, then Deputy Prime Minister Ratu David Toganivatu, the chief guest at the three-day meeting, questioned why the country’s biggest foreign-exchange earner could not match the unity shown by the sugar industry.
He said airlines, hotels and travel operations were engaged in constant disputes that weakened the industry.
At the time, the tourism sector was marked by rivalry among airlines, hotels, ground tour operators, and travel companies.
Operators complained about high airfares, hotels were accused of charging excessive room rates, and travel companies were criticised for price cutting despite agreed guidelines.
Despite the tensions, visitors were benefitting from heavily discounted package deals. A return airfare to Hawaii alone cost about $800, while package tours including flights and a week’s accommodation were offered for just over $500.
Air Pacific’s project America venture dominated discussions. The national airline had been carrying package travellers for low fares to build traffic on its Honolulu route. Industry leaders said the airline lacked the resources to break into the American market.
Air Pacific chairman John Hill told the convention the airline had expected 18 months of losses before breaking even and asked for the continued government support. He said profitability would depend on securing the Los Angeles route.
By March 1984, Air Pacific’s accumulated loses had risen to $26 million. The company had earlier reported losses of between $5 million and $6 million for several years prior.
As the airline sought further assistance, government was also facing pressure from civil servants demanding more than $13 million in back pay.
The 1984 convention highlighted both the potential and the strains within Fiji’s tourism industry as it prepared for rapid growth in the years ahead.
