They provide diverse products and services to visitors and local residents.
Therefore, measuring the total size and output of the tourism industry is not as straightforward as measuring output from the other industries such as manufacturing and agriculture.
The direct contribution of tourism to Fiji’s GDP has increased from an average of 3.0 percent in 1980-1990s to 6.4 percent of GDP in 2011-2016.
This was measured through the accommodation and food services activities sector.
It includes short term accommodation activities of hotels, resorts, food and beverage serving activities.
The tourism industry’s combined direct and indirect contributions to GDP averaged above 30 percent over the past seven years.
This industry also provides direct and indirect employment to an estimated 45,000 people.
The industry creates a multiplier effect in the local economy and supports business activity and livelihoods of many people working in many other industries such as agriculture and transport.
The Government supports the industry’s growth and development through grants to Tourism Fiji.
$36 million was allocated towards the industry in the 2016/2017 National Budget.
Tourism Fiji is working towards diversifying its tourism products to attract more visitors and at the same time, increase flights and connectivity to other non-traditional source markets.
Fiji is working towards reaching the target of one million visitors and/or a $2.2 billion industry by visitors.
International Visitor Arrivals :
Over the last six decades, there has been a steady growth in international visitor arrivals.
Visitor arrivals had increased by 37, 485 in 2016 compared to 2015 despite the prevalence of natural disasters, such as the Tropical Cyclone Winston in April 2016.
A growth of 5 percent in 2017 was expected but in May this year, a total of 296, 088 tourists was recorded.
This showed an annual growth of 7.0 percent.
In terms of monthly visitor arrivals, there is a distinct seasonal variation in the given periods, with arrivals peaking in July (Chart 1).
Fiji also benefits from the number of Australian and New Zealand visitors, taking advantage of Fiji’s warmer climate during their winter season (June to August).
Purpose of visit and average length of stay :
Tourism earnings :
The tourism industry has become Fiji’s largest source of foreign exchange earnings in comparison to earnings from other traditional industries such as sugar, fisheries, garments and forestry.
In 2010, earnings from tourism crossed the billion dollar mark at $1.2 billion.
For the 2011-2015 period, gross earnings from the tourism industry averaged around $1.4 billion.
Last year, tourism earnings grew further to around $1.6 billion, equivalent to 16.0 percent of GDP.
(Source: RBF – Reserve Bank of Fiji 16 July 2017)
