Fiji’s tourism sector posted a strong start to 2026, but rising fuel costs and global uncertainties are expected to weigh on growth for the rest of the year, according to Westpac’s latest economic update.
Visitor arrivals rose 7 per cent year-on-year in the first quarter, reaching 196,977 compared to 184,119 in the same period last year. March recorded a monthly high of 71,765 arrivals, signalling strong demand recovery after a seasonal dip in February.
However, Westpac warns that momentum may slow, with elevated jet fuel prices and risks of supply disruptions linked to ongoing Middle East tensions posing significant challenges.
“These pressures are already affecting flight capacity,” the report noted, pointing to Fiji Airways’ decision to temporarily suspend selected services on the Nadi–Brisbane and Dallas–Nadi routes.
With fuel remaining the airline’s largest cost, Fiji Airways is expected to adopt a cautious approach, focusing on efficiency, route optimisation and core markets such as Australia and New Zealand.
Australia remained Fiji’s largest source market, with arrivals up 8.5 per cent to 86,445 in the first quarter, followed by New Zealand and the United States. While Chinese visitor numbers showed signs of recovery, they remain below pre-pandemic levels.
Westpac expects visitor arrivals to remain broadly flat for 2026, with potential upside if fuel prices ease and operational disruptions are limited.
