A SHARP downturn in tourist arrivals is looming for Fiji, as global instability and rising costs driven by the Middle East conflict persist.
This projection was highlighted in the Asian Development Outlook 2026 released by the Asian Development Bank, which assessed the potential economic fallout of rising geopolitical tensions on small, tourism-dependent economies like Fiji.
Speaking to this newspaper on the issue, Tourism Action Group (TAG) chair Damend Goundar said the anticipated downturn is already being factored into their planning.
Mr Goundar said industry players had expected disruptions and were working collaboratively with government to cushion the impact.
“The short term is the protection of all the bookings that are already in and coming in,” Mr Goundar said.
“And then for the mid to long term, particularly into the second quarter and early 2027, we are looking at what needs to be done to stimulate bookings.”
Mr Goundar noted that the crisis was expected to persist, with ripple effects likely to intensify over time, particularly through rising fuel costs and supply concerns.
“Our biggest concern is the availability of fuel in the country.
“While fuel remains accessible, conservation measures are being encouraged as a precaution.”
He also warned that further fuel price increases were likely, which could place additional pressure on airlines and travel affordability, key factors influencing tourist arrivals. “There may be others that would come, so we all have to be prepared for that.”
The Tourism Action Group was reactivated in March this year as a coordinated response mechanism to address emerging risks posed by the escalating Middle East crisis on Fiji’s tourism industry.
