Fiji’s growth is projected to slow to 3% in 2024 and further to 2.7% in 2025 due to the projected slowdown in travel demand and significant capacity limits in tourism, says the Asian Development Bank in its outlook for 2024.

The report says for Fijian economy – tourism and increased remittances will continue to be the main drivers of growth this year.

The ADB says sustaining tourism growth will require boosting investment, promoting tourism activity in other areas, particularly in the outer islands, and attracting other segments of tourism markets.

The report says Fiji’s growth, largely driven by tourism, could be attributed to pent-up demand which led to record visitor arrivals despite high global inflation and tight monetary policies in key tourism markets.

The ADB says tax reforms and increased demand supported robust government

revenue despite tight labour market conditions from worker migration. The primary sector’s contribution declined while industry rose moderately.

The economic outlook is sluggish due to a projected slowdown in travel demand and significant capacity limits in tourism.

The report also says major government-led reforms are likely to generate new private sector investment but their full impact may not be felt for several years.

Visitor arrivals in exceeded pre-pandemic levels. Total arrivals were 4% higher than in 2019.

Arrivals from Australia (47% of the total), New Zealand 24%, US (11%) and Canada (2%) – all exceeded 2019 levels.

During the peak tourism season from June to September, major hotel occupancy rates were between 84 to 87%.