Country Presentation -Fiji

Country Presentation -Fiji
Shaveen Lata : S Seema Shalini : S Irene Chandra : S Mukhtar Ahmed : S

PRESENTATION OUTLINE SWOT Analysis of Fiji Economy
Ease of Doing Business in Fiji Tourism Industry Future Investment and Growth In Tourism Upcoming Sustainable Project Government’s Role in Ecotourism Pillars of Sustainable Tourism Recommendations References

Strengths • Attracts niche markets • High literacy rate • Diverse Population • Friendly and welcoming. people • Multicultural society • National air carrier • Overseas Financial support and investment • Numerous established industries • Fertile Lands • Wide range of hotels & resorts • Strong awareness of Fiji around the world. • Educational hub for the Pacific • “Crossroads” of the Pacific. • Strong indigenous culture-indigenous Fijians • Ecosystem and Species diversity

Weakness An Asian development bank’s report states that Fiji’s political and economic uncertainties create an environment of little business confidence. Private sector development is key to increasing Fijis economic outlook however, the political uncertainly and government policies are not doing well to encourage investment. Moreover, as the major shareholder of FPCL, government policies directly affect any strategic plans the company may be trying to implement. Uncertainty at the political level has the potential to negatively affect the executive level management and by extension, the employees and stakeholders of Fiji Ports.

Opportunities

Threats

EASE OF DOING BUSINESS IN FIJI Top quartile for getting credit and protecting investors!
2011 rank 2010 rank Change Doing Business 62 61 -1 Starting a Business 104 107 3 Dealing with Construction Permits 58 - Employing Workers 31 Registering Property 50 44 -6 Getting Credit 46 -2 Protecting Investors 41 -3 Paying Taxes 77 76 Trading Across Borders 103 108 5 Enforcing Contracts 63 65 2 Closing a Business

Tourism Environment Analysis
Discuss strengths, current contribution, Challenges

Heading – FUTURE INVESTMENT AND GROWTH IN TOURISM

FUTURE INVESTMENT AND GROWTH IN TOURISM

The government has called for expression of interest from internationally successful casino developers and operators. Local casinos are expected to attract more visitors and increase visitor length of stay particularly from new emerging markets, china, europe and india. Advantages: Create a new segment from fiji’s tourism sector Flow on effect to satellite industries and the public Create employment Increase government revenue Drawback Possble social implications for locals if not controlled.

Pillars of Sustainable Tourism
REDUCE / REUSE / RECYCLE/ REPLACE... Four PillaRs of Sustainable Tourism 1. REDUCE... By far the biggest impact we can have on global warming is to reduce our consumption. There are dozens of ways which have significant impact without really affecting our lifestyles. These include everything from switching off unneeded lights to car-pooling. 2. REUSE... We can cut down considerably on waste if we use things more than once. Especially packaging and containers – we must do away with single-servings and introduce reusable containers. Additionally, many items we throw away could be given away or resold, to reduce the reliance of others on new goods. 3. RECYCLE... Most of the waste products we pay others to take away could be turned into energy or money. Even rotting garbage gives off methane which could be used to power our cars. In addition, separating your rubbish provides the means for others to recycle (one man’s trash is another man’s treasure). 4. REPLACE... At present, we’re stripping resources from the world. Everything from the fish in the seas to the grain on the farms is being seriously depleted. As the human population grows, it’s imperative that we are able to sustain ourselves at a ‘micro-’ level. That means each and every one of us needs to put back what we take out.

Upcoming Sustainable Project
South Pacific Projects is a UK based non-profit marine conservation organisation working in Fiji. We work closely with local communities and assist them to establish Marine Protected Areas in order to provide long-term food security and protect biodiversity. We employ SCUBA surveying techniques and educational outreach projects in local schools to achieve our goal of empowering Fijian coastal communities to sustainably manage their threatened marine resources in order to secure them for future generations. Our Managing Director is currently fundraising for the International Whale & Dolphin Conservation Society right now by cycling 2,900 miles from London to Marrakech. Please visit to view his progress and make a donation to support cetacean conservation. Our marine conservation projects provide the local community with the education and training necessary to establish Marine Protected Areas. By sharing research findings with our project partners, we enable Fijian communities in our region to make informed resource management decisions whilst ensuring that new intiatives result in genuine conservation. Our research assists the local community and takes place so that the Department of Fisheries, the Fijian Locally Managed Marine Area Network (FLMMA), the University of the South Pacific and our new partner, Global Vision International can work together on towards developing sustainable local environmental management plans for the unique reef systems of the region. These plans will focus on improving the quality of life of the local communities who depend on these marine resources while maintaining the biological diversity and productivity of the reefs. Considering potential threats to the world’s reefs from climate change and human impact, it is critical that data be gathered for use in local environmental management plans. Our Fijian marine conservation project supports research into biodiversity conservation, sustainable fisheries, marine protected area (MPA) management and capacity building. > Join us today

Government’s Role in Ecotourism
The Fiji Ecotourism Association was formed in 1995 with the objective of consolidating all interested parties in terms of ecological, historical, cultural, nature based, and adventure based tourism activities. The organization has recently defined principles and practices crucial to all ecotourism products. First, the Association created and adopted the "Fiji Ecotourism and Village-based Policy." This policy is defined as, "A form of nature-based tourism which involves responsible travel to relatively undeveloped areas to foster an appreciation of nature and local cultures, while conserving the physical and social environment, respecting the aspirations and traditions of those who are visited, and improving the welfare of the local people." In order to ensure that the above policy is abided by, The Fiji Ecotourism Association established a set of Objectives, as presented by the Constitution of the Organization, as well as a Code of Practice. Among others, a few of the Objectives include: The consolidation of ecotourism practitioners into one organization; The Establishment and maintenance of a Code of Ethics; Develop/Implement an accreditation system that recognizes legitimate ecotourism operators; To support government decisions that enable ecotourism on the island; Adopt/Implement a system to recognize achievements made toward international best practice by members of the tourism industry in environmental and social responsibility; Encourage/Monitor tourism involving sustainable use of natural resources; Encourage/Assist locals to become more involved in ecotourism related activities; Encourage/Monitor tourism activities involving the discovery and artistic traditions of Fiji. The Code of Practice states principles that members agree to follow. The general ideas of these principles are as follows: To strengthen the conservation effort; To respect sensitivities of all cultures; To practice/promote the efficient use of natural resources; To prohibit use/importation of hazardous/harmful materials and chemicals; Ensure that waste disposal has minimal environmental impacts; Agree not to use imported goods that are packaged in non-recyclable/harmful materials, and to promote recycling; Support and promote all businesses that believe in and practice the conservation of natural/cultural resources; Raise environmental and socio-cultural awareness through the distribution of ecotourism awareness guidelines; Support ecotourism education and training for tour operators, accommodation, government, and other tourism industry affiliates/stakeholders; Educate/Train staff to be respectful of local cultures; Present appropriate verbal and written educational material and guidance to clients; Maximize the use of locally produced goods that support sustainable agricultural and fishing practices; Do not purchase goods that are made from threatened or endangered species; Always keep vehicles on designated trails throughout nature areas; Commit to the principles of sustainable practices and guidelines; Comply with International safety standards; Ensure that all marketing material, publications, and presentations are truthful. The Fiji Ecotourism Association has rapidly increased it's membership over the years since it's inception. The Association provides a website that can directly link travelers with Fiji Ecotourism Association Member Tour Operators, Accommodations, and Organizations. The current website lists twenty-six ecotourism opportunities.

Recommendations Promotion Environment-ally friendly Marketing
Operations & Managements Investment Planning Capacity building Monitoring Sustainable development partnership Environment-ally friendly Sound environmental management of tourism facilities and especially hotels (water and energy saving measures, waste minimization, use of environmentally friendly material, etc.) can decrease the environmental impact of tourism. Planning helps to make choices between the conflicting interests of industry and tourism, in order to find ways to make them compatible. By planning early for tourism development, damaging and expensive mistakes can be prevented, thereby avoiding the gradual deterioration of environmental assets significant to tourism.

References ANZ RESEARCH, PACIFIC QUARTERLY, 16 MAY 2011
Pacific Economic Monitor, July 2011 Pacific Economy Survey, Commonwealth of Austraila, 2009 Fiji GDP Update 2010, Fiji Island Bureau of Statistic UNESCAP, Report 2011 Fiji Tourism Industry, A SWOT Anaylsis by Paresh Kumar Narayan, Volume 2, December 2000. Reserve Bank of Fiji (various issues). Reserve Bank of Fiji Quarterly. Chiang, L.C. (1999). Strategies for sustainable visitor growth: A case study. The Journal of Tourism Studies, 10(1),18-24

Appendix- Fiji Economy Related Stats.
Country SWOT Fiji Tourism SWOT Statistics Related to Fiji Economy

Country SWOT Strengths Weakness Threats Opportunities:
• Attracts niche markets • High literacy rate • Diverse Population • Friendly and welcoming. people • Multicultural society • National air carrier • Overseas Financial support and investment • Numerous established industries • Fertile Lands • Wide range of hotels & resorts • Strong awareness of Fiji around the world. • Educational hub for the Pacific • “Crossroads” of the Pacific. • Strong indigenous culture-indigenous Fijians • Ecosystem and Species diversity Political instability and security Health risks and problems • Infrastructure Pollution Natural disaster Geographic Distance • Product diversification Target the “stop over” market • Exploit Asian market. • Incentives for the film and television industry. • Heritage and colonial tourism • Increased festivals “inter island hopper pass” • unexplored Islands More ecotourism orientated • Niche markets such as MICE, business traveler • Mature/seniors market • Adventure tourism • Community based cultural tourism • Cheap real estate Major business comes from Australia and NZ • General civil unrest and racial tensions. • Land ownership issues. • Increased gas prices . • Ecologial issues • Climate change • Heightened air travel security • Other emerging destinations. • reliance on foreign aid • Natural disasters/weather/typhoons • Loss of intellectual capital from emigration leakages Developed tourism can lead to inflation Strengths Weakness Strengths • Fiji can attracts niche markets, in particular diving, fishing, honeymooners, cruise • The population is educated, has a high literacy rate. • Diverse Population - allows the product to also be diverse. Singapore recognizes this and markets its diversity and proudly. • Pacific Islanders are perceived as friendly and welcoming. • Fiji is a multicultural society with vast intellectual capital. • Fiji has a national air carrier ( Air Pacific). • Financial support and investment from Australia and New Zealand • Fiji has established industries other than tourism. Unlike most South Pacific Islands • Fertile Lands-established industries- Fiji has multiple industries such as processing and growing cash crops this means that the economy is not reliant on just one source of income • A full range of accommodations are available from hostel to 5 star resort • Strong awareness of Fiji around the world. • Educated population- literacy levels are high compared to other competitor islands in the South Pacific. • Educational hub for the Pacific • Strategically placed en route to North America and Asia, expand on being the “crossroads” of the Pacific. • Strong indigenous culture-indigenous Fijians have done a good job at keeping their culture. • Ecosystem and Species diversity Oppportunities: Tourism product diversification into new markets. • Increase the “stop over” market and cruise ship markets. • Increased trade with Japan • Promotion of Fiji to the expatriate Indian market • Taking advantage of approved destination status with the Chinese markets • Incentives for the film and television industry for revenue and promotion. • Heritage and colonial tourism • Increased festivals • Work with other Pacific airlines and cruise companies to develop a “inter island hopper pass” which is valid for multiple South Pacific islands. • Many undiscovered areas of Fiji still remain such as Kadavu Island ; More ecotourism orientated • Niche markets such as MICE, business traveler • Mature/seniors market • Adventure tourism • Packaging with other countries in the South Pacific/regional branching • Community based cultural tourism • Other untapped markets such as Taiwan and Korea • Cheap real estate by Western standards are available to resort developers. Threats • 40% of tourism business comes from Australia and NZ • General civil unrest and racial tensions. • Land ownership issues between current landowners and traditional chiefs. • Increased gas prices will increase the cost of importing foods and goods. • Ecologial issues which will affect tourism experience such as quality of water. • Climate change will lead to warmer water which will start to bleach (kill) the coral. Sea levels will have an affect on the small islands. • Heightened air travel security will make flying a less enjoyable experience. • Other emerging destinations could make Fiji less desirable in the future. • Fiji is still reliant on foreign aid for basic services for healthcare • Land ownership disputes, access to fishing grounds/ native reserve commission issues • Climate change rising sea levels/weather • Natural disasters/weather/typhoons • Loss of intellectual capital from emigration • Good investor incentives may lead to leakage and a reduction on the multiplayer effect. • Developed tourism can lead to inflation and the cost of land to increase • Influx of tourism can lead to demonstration effect on small islands Threats Opportunities:

SWOT Analysis of Fiji Tourism

Domestic growth erratic over the years GDP outlook is looking more promising
Re-cut this one one.

TRADING PARTNERS’ OUTLOOK
Source: IMF World Economic Outlook –April 2011 Positive Outturn in Trading Partner Countries - Despite Natural Disasters still Positives for Fiji in Trade, Tourism

Inflation is a concern but expected to ease

Trade & Current account deficits improved

Foreign reserves comfortable

But Private Sector activity is weak

EASE OF DOING BUSINESS Ease of Doing Business 2011 rank 2010 rank
Change in rank Singapore 1 - New Zealand 3 United States 5 Australia 10 Samoa 61 67 6 Fiji 62 -1 Tonga 71 66 -5 China 79 78 Kiribati 93 91 -2 Papua New Guinea 103 108 India 134 135 Total Number of Countries – 183 Source: Doing Business 2011, The World Bank

EASE OF DOING BUSINESS IN FIJI Top quartile for getting credit and protecting investors!
2011 rank 2010 rank Change in rank Doing Business 62 61 -1 Starting a Business 104 107 3 Dealing with Construction Permits 58 - Employing Workers 31 Registering Property 50 44 -6 Getting Credit 46 -2 Protecting Investors 41 -3 Paying Taxes 77 76 Trading Across Borders 103 108 5 Enforcing Contracts 63 65 2 Closing a Business

IMPEDIMENTS TO INVESTMENT
Major Impediments found: in no particular order of priority Government policy uncertainty Red tape and bureaucracy General economic climate Finding skilled labour Political situation Law and order issues Lack of infrastructure High Utility costs (eg. water and electricity) Land tenure instability RBF Survey 1999

SWOT Analysis - Fiji Strengths
• Attracts niche markets • High literacy rate • Diverse Population • Friendly and welcoming. people • Multicultural society • National air carrier • Overseas Financial support and investment • Numerous established industries • Fertile Lands • wide range of hotels & resorts • Strong awareness of Fiji around the world. • Educational hub for the Pacific • “crossroads” of the Pacific. • Strong indigenous culture-indigenous Fijians • Ecosystem and Species diversity Strengths • Fiji can attracts niche markets, in particular diving, fishing, honeymooners, cruise • The population is educated, has a high literacy rate. • Diverse Population - allows the product to also be diverse. Singapore recognizes this and markets its diversity and proudly. • Pacific Islanders are perceived as friendly and welcoming. • Fiji is a multicultural society with vast intellectual capital. • Fiji has a national air carrier ( Air Pacific). • Financial support and investment from Australia and New Zealand • Fiji has established industries other than tourism. Unlike most South Pacific Islands • Fertile Lands-established industries- Fiji has multiple industries such as processing and growing cash crops this means that the economy is not reliant on just one source of income • A full range of accommodations are available from hostel to 5 star resort • Strong awareness of Fiji around the world. • Educated population- literacy levels are high compared to other competitor islands in the South Pacific. • Educational hub for the Pacific • Strategically placed en route to North America and Asia, expand on being the “crossroads” of the Pacific. • Strong indigenous culture-indigenous Fijians have done a good job at keeping their culture. • Ecosystem and Species diversity

SWOT Analysis - Fiji Weaknesses
• Political instability and security • Health risks and problems • Infrastructure • Pollution • Natural disaster • Geographic Distance Weakness Political instability and security: • Health risks and problems: Dengue Fever and Malaria are still threats in the South Pacific. Recently there was a Measles / Rubella outbreak on one of the islands. • Infrastructure: one of the main weaknesses is the road infrastructure. • Pollution: a large population in Fiji • Weather: typhoons, cyclones, tsunami and rising sea levels are common yearly occurrences. • Geographic Distance: Fiji is currently dependent on most of its tourism business from Australia, NZ and US.

SWOT Analysis - Fiji Opportunities
• Product diversification • Increase the “stop over” market • Exploit Asian market. • Incentives for the film and television industry. • Heritage and colonial tourism • Increased festivals “inter island hopper pass” •unexplored Islands ; More ecotourism orientated • Niche markets such as MICE, business traveler • Mature/seniors market • Adventure tourism • Community based cultural tourism • Cheap real estate Oppportunities: Tourism product diversification into new markets. • Increase the “stop over” market and cruise ship markets. • Increased trade with Japan • Promotion of Fiji to the expatriate Indian market • Taking advantage of approved destination status with the Chinese markets • Incentives for the film and television industry for revenue and promotion. • Heritage and colonial tourism • Increased festivals • Work with other Pacific airlines and cruise companies to develop a “inter island hopper pass” which is valid for multiple South Pacific islands. • Many undiscovered areas of Fiji still remain such as Kadavu Island ; More ecotourism orientated • Niche markets such as MICE, business traveler • Mature/seniors market • Adventure tourism • Packaging with other countries in the South Pacific/regional branching • Community based cultural tourism • Other untapped markets such as Taiwan and Korea • Cheap real estate by Western standards are available to resort developers.

SWOT Analysis - Fiji Threats
• Major business comes from Australia and NZ • General civil unrest and racial tensions. • Land ownership issues. • Increased gas prices . • Ecologial issues • Climate change • Heightened air travel security • Other emerging destinations. • reliance on foreign aid • Natural disasters/weather/typhoons • Loss of intellectual capital from emigration leakages • Developed tourism can lead to inflation • Influx of tourism can lead to demonstration effect on small islands Threats • 40% of tourism business comes from Australia and NZ • General civil unrest and racial tensions. • Land ownership issues between current landowners and traditional chiefs. • Increased gas prices will increase the cost of importing foods and goods. • Ecologial issues which will affect tourism experience such as quality of water. • Climate change will lead to warmer water which will start to bleach (kill) the coral. Sea levels will have an affect on the small islands. • Heightened air travel security will make flying a less enjoyable experience. • Other emerging destinations could make Fiji less desirable in the future. • Fiji is still reliant on foreign aid for basic services for healthcare • Land ownership disputes, access to fishing grounds/ native reserve commission issues • Climate change rising sea levels/weather • Natural disasters/weather/typhoons • Loss of intellectual capital from emigration • Good investor incentives may lead to leakage and a reduction on the multiplayer effect. • Developed tourism can lead to inflation and the cost of land to increase • Influx of tourism can lead to demonstration effect on small islands

Fiji Economic Update - Economy - overview
Fiji, endowed with forest, mineral, and fish resources, is one of the most developed of the Pacific island economies though still with a large subsistence sector. Sugar exports, remittances from Fijians working abroad, and a growing tourist industry - with 400,000 to 500,000 tourists annually - are the major sources of foreign exchange. Fiji's sugar has special access to European Union markets but will be harmed by the EU's decision to cut sugar subsidies. Sugar processing makes up one-third of industrial activity but is not efficient. Fiji's tourism industry was damaged by the December 2006 coup and is facing an uncertain recovery time. In 2007 tourist arrivals were down almost 6%, with substantial job losses in the service sector, and GDP dipped. The coup has created a difficult business climate. The EU has suspended all aid until the interim government takes steps toward new elections. Long-term problems include low investment, uncertain land ownership rights, and the government's inability to manage its budget. Overseas remittances from Fijians working in Kuwait and Iraq have decreased significantly. Fiji's current account deficit reached 23% of GDP in 2006. GDP (purchasing power parity) $3.869 billion (2010 est.) $3.864 billion (2009 est.) $3.983 billion (2008 est.) note: data are in 2010 US dollars GDP (official exchange rate) $3.131 billion (2010 est.) GDP - real growth rate 0.1% (2010 est.) -3% (2009 est.) % (2008 est.) GDP - per capita (PPP) $4,400 (2010 est.) $4,400 (2009 est.) $4,600 (2008 est.) note: data are in 2010 US dollars

Fiji Economic Update – Continued (1)
GDP - composition by sector agriculture: 16.1% industry: 24.4% services: 59.5% (2010 est.) Population below poverty line 25.5% (FY90/91) Labor force 335,000 (2007 est.) Labor force - by occupation agriculture: 70% industry and services: 30% (2001 est.) Unemployment rate 7.6% (1999) Household income or consumption by percentage share lowest 10%: NA% highest 10%: NA% Budget revenues: $782.1 million expenditures: $886.3 million (2010 est.) Taxes and other revenues 25% of GDP (2010 est.) Budget surplus (+) or deficit (-) -3.3% of GDP (2010 est.)

Inflation rate (consumer prices) 5.1% (2010 est.) Central bank discount rate 3% (31 December 2009) % (31 December 2008) Commercial bank prime lending rate 7.5% (31 December 2010 est.) 7.9% (31 December 2009 est.) Stock of narrow money $748 million (31 December 2008) $1.042 billion (31 December 2007) Stock of money $738.6 million (31 December 2008) $1.042 billion (31 December 2007) Stock of quasi money $1.012 billion (31 December 2008) $1.088 billion (31 December 2007) Stock of broad money $1.88 billion (31 December 2008) $1.741 billion Stock of domestic credit $1.789 billion (31 December 2010 est.) $1.737 billion (31 December 2009 est.)

Fiji Economic Update (Continued (3)
Market value of publicly traded shares $NA (31 December 2010) $1.607 billion (31 December 2009) $568.2 million (31 December 2008) Agriculture - products sugarcane, coconuts, cassava (tapioca), rice, sweet potatoes, bananas; cattle, pigs, horses, goats; fish Industries tourism, sugar, clothing, copra, gold, silver, lumber, small cottage industries Industrial production growth rate NA% Electricity - production 970 million kWh (2009 est.) Electricity - production by source fossil fuel: 18.5% hydro: 81.5% nuclear: 0% other: 0% (2001) Electricity - consumption 865.8 million kWh (2008 est.) Electricity - exports 0 kWh (2009 est.)

Fiji Economic Update – (Continued (4)
Electricity - imports 0 kWh (2009 est.) Oil - production 0 bbl/day (2010 est.) Oil - consumption 15,000 bbl/day (2010 est.) Oil - exports 1,857 bbl/day (2009 est.) Oil - imports 18,850 bbl/day (2009 est.) Oil - proved reserves 0 bbl (1 January 2011 est.) Natural gas - production 0 cu m (2009 est.) Natural gas - consumption Natural gas - exports Natural gas - imports Natural gas - proved reserves 0 cu m (1 January 2011 est.)

Current Account Balance -$507 million (2007 est.) -$237.8 million (2009 est.) Exports $625.3 million (2009 est.) $1.202 billion (2006) Exports - commodities sugar, garments, gold, timber, fish, molasses, coconut oil Exports - partners US 15.7%, Australia 14.6%, Japan 6.1%, Samoa 5.7%, Tonga 5% (2010) Imports $1.3 billion (2009 est.) $3.12 billion (2006) Imports - commodities manufactured goods, machinery and transport equipment, petroleum products, food, chemicals Imports - partners Singapore 31.1%, Australia 19.1%, NZ 15.1%, China 8.6% (2010) Reserves of foreign exchange and gold $567.3 million (31 December 2009 est.) Debt - external $127 million (2004 est.) Stock of direct foreign investment - at home $NA Stock of direct foreign investment - abroad Exchange rates Fijian dollars (FJD) per US dollar - NA (2007) (2006) (2005) (2004) (2003)

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