Deficiency of stock of 4,505 rooms by 2033

March 18, 2024 6:05 am

[File Photo]

ANZ International Economist, Kishti Sen believes if Fiji wants to aim for 1.2 million peak season visitors by 2033, then new hotel completions will be insufficient to close the supply gap.

Sen says this will lead to a deficiency of room stock that they estimate will peak at 4,505 rooms in 2033.

According to ANZ’s research paper Pacific Insight, they believe Fiji can double its peak season arrivals over the next 10 years to 1.2million visitors by 2033 without compromising on its charm

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This equates to 8.1 percent growth in inbound demand each year.

Sen says the deficiency of stock should spur a cyclical upturn in hotel construction towards the end of this decade.

He adds new stock generally attracts customers, and that demand should be enough to meet occupancy targets.

Without additional stock, the International Economist says Fiji runs the risk of losing sustainable demand and damaging its cost competitiveness.

For all its charms, Sen states Fiji will want to remain affordable in its main markets of Australia, New Zealand, the USA, Canada, the Pacific islands and Asia.

He suggests bringing more boutique (100-200 room) style accommodation on stream over the next 10 years will be important for Fiji to remain competitive.