Fiji Tourism strives to survive

FOR many in the tourism industry, last year was supposed to become one of the most memorable in the industry's history.

It was to be the year that Fiji tourism would achieve its target of becoming a billion dollar industry. And for the first three quarters of last year, despite obstacles such as the introduction of the bed tax, it seemed the industry was going to achieve its goal well ahead of time. But the dream of being one of the 'big boys' in global tourism foreign exchange earnings came to an end when the military began its clean-up campaign on December 5. The industry practically collapsed with occupancy rates plummeting and employers left with no option but to begin lay-offs and reduce working hours. With more than 50,000 people either directly or indirectly dependent on tourism, the grassroots communities felt the full brunt of the industry's decline. One just has to walk into the nation's major resorts and the effects will be clearly visible empty foyers, restaurants, bars and a lot of rooms on offer at very cheap rates.

At handicraft markets usually bustling with tourists, vendors are these days praying that they can earn a few dollars in a day. Within days of the military takeover, employees were laid off, working hours were reduced and many were provided with options of taking owed leave or going on leave without pay. All accommodation, airline fares and tour operations were slashed by about 40 per cent, making Fiji one of the cheapest destinations on the market. The majority of Fiji's hotels and resorts are averaging an occupancy rate of about 20 to 40 per cent of the rates experienced in previous years. Adding to the damage are the negative travel advisories Fiji continues to receive from foreign governments.

Despite the slowdown, industry stakeholders have maintained the goal of transforming tourism into a billion dollar industry by the end of this year. However, they are well aware that achieving this objective is a daunting task that needs enormous commitment, dedication and resilience. There is one thing for certain, industry stakeholders are united and more determined to ensure Fiji tourism is lifted to its former glory within the next few months. Taking heed of the call by Fiji Visitors Bureau chief executive, Viliame Gavoka for hoteliers to forget the past and work for the future, the industry stakeholders have risen and taken up the challenge. On December 20, the Tourism Action Group (TAG) launched a recovery campaign worth $5million.

Divided into three phases, the first phase of TAG's promotional campaign worth $1.2million targeted Fiji's primary tourism markets New Zealand and Australia. TAG chairman Damend Gounder said the promotional committee was confident that proper funding would allow visitor arrivals to bounce back and normalise by June. Mr Gounder said they were overwhelmed by the response and support offered by all segments of the industry. The industry received another boost when military commander, Commodore Voreqe Bainimarama halted the proposed Value Added Tax increase from 12.5 per cent to 15 per cent on December 29. Mr Gounder welcomed the announcement saying that it would help in the recovery.

Mr Gounder said the announcement would give visitors something to look forward to as they were guaranteed healthy savings on their holidays. Fiji Islands Hotel and Tourism Association president Dixon Seeto said by the third quarter of last year, foreign exchange earnings from tourism had exceeded $830million. Mr Seeto said all hoteliers were devoted to the industry's resurrection. He said since the first phase of the recovery campaign began after Christmas, spirits were high and everyone was confident of doing exceptionally well. Mr Seeto said with 70 per cent of visitor arrivals coming from New Zealand and Australia, if the promotional campaigns were successful, Fiji tourism would be well on track.