Fiji is heavily dependent on visitors from other countries, particularly Australia and New Zealand. As a result, at the height of the pandemic in 2020, when strict quarantine requirements were implemented in both Australia and New Zealand, the economy experienced a GDP contraction of more than 15%. The following year, 2021, saw a smaller contraction in Fiji’s economy.
As tourism picks up, this severe downturn has created a favorable comparison base that will flatter growth over the forecast period. In 2022, the number of visitors was more than half what it was before the pandemic, according to Focus Economics review published on their website. Risk factors include the country’s small economic base, vulnerability to natural disasters, high public debt, and significant current account deficit.
Asian Development Bank stated that, “In the absence of more severe COVID-19 variants, the strong tourism rebound will be sustained throughout the year. In July 2022, visitor arrivals were almost 82% of those prior to the COVID-19 pandemic, with the number of tourists from Australia accounting for 101% of the July 2019 count, Canada accounting for 76%, New Zealand accounting for 90%, and the United States accounting for 94%”. According to the Asian Development Bank, “Fiji is likely to attract more business meetings, travel promotions and incentives, international conferences, and exhibitions in the coming months.”
By VISHAL NAICKER