Fiji: Fiji Tourism Profile

Natural disasters hurt tourism in 2012

In April 2012, a National of Emergency was declared in Fiji as flash flooding and extreme weather conditions caused the Fijian government to take the extreme measure of discouraging inbound tourists, as safety could not be assured. Again, in December 2012, Tropical Cyclone Evan hit Fiji, causing flooding and widespread damage to infrastructure and utilities. However, tourism officials were quick to point out that the majority of tourism infrastructure damage remained cosmetic and that service providers were back to full operation within days.

Air Pacific becomes Fiji Airways

In 2012, Air Pacific announced it would rebrand to Fiji Airways in 2013 to better reinforce its role as the national carrier. The rebranding is part of a wider strategic review that will see the airline focus on an expanded network, the introduction of new aircraft and an in general enhanced product offering. The strategic review was a response to the airline’s succession of operating losses, which it was able to turn around in financial year 2011/2012 to an operating profit.

Operators continue to distance themselves from troubles in the capital

Political uncertainty and social problems in the Fijian capital of Suva continue to smear the marketing efforts of Tourism Fiji. The governments of both Australia and New Zealand, the major source markets of inbound tourism for Fiji, continue to offer various warnings to travellers inclunding avoiding Suva due to reports of violent crime and sexual assaults. The expulsion of the Acting Australian High Commissioner by the interim Fijian government in 2010 as well strained relations between the two nations. Relations between Fiji, Australia and New Zealand have since normalised, with sanctions and travel restrictions presently lifted.

Fiji as a price destination

Service providers continued to offer strong discounts, marketing their outlets as part of price-for-money travel packages. In particular, family-friendly resorts offered budget travel packages to entice additional families. The discounting strategy is aimed at increasing occupancy rates, and it favoured larger hotels able to volume sell. It is as well seen as an significant strategy in remaining competitive against competing island destinations such as Bali and other Pacific Islands. However, a lot of hotels and operators felt the pinch in terms of profit due to budget deals and increased operational costs, with the official inflation rate at over 8% in 2011.

Tourism Fiji looks north for next growth

Such as with the rest of the world, Tourism Fiji is looking further north to the rising Asian nations for next increase prospects, namely China, South Korea and Taiwan. Moving forward, Tourism Fiji as well plans to rebrand with the slogan ‘Fiji, where happiness finds you’ to replace the country’s current ‘Fiji Me’ campaign. The organisation has appointed new advertising, public relations and social media agencies in Australia, New Zealand, the US and China to coordinate the new brand launch, which will develop over 2013.

The number of arrivals grew strongly in 2010, next a decrease in 2009. A strong marketing campaign conducted by Tourism Fiji saw arrivals reach record numbers. The key source markets of Australia and New Zealand accounted for the bulk of inbound tourists. Meanwhile, the number of arrivals from the US and Asia grew as the effects of the world economic crisis faded.

European and US tourists a real boon to the industry

Fiji’s secluded paradise image growing

Independent hotels lose market share to internationally branded chains

Competition causes airline ticket prices to drop

Adventure tours growing in popularity