tourist arrivals have totalled 72,132 between December 2021 and March of this year, with 21,390 visitors recorded for March alone.
While major trading partner economies have tightened monetary policy to contain rising price pressures, safeguarding domestic growth is vital to avoid derailing Fiji’s recovery.
Reserve Bank of Fiji Governor Ariff Ali says despite these growing headwinds, the projected positive stimulus generated by the tourism industry’s recovery has begun to offer momentum for the Fijian economy.
Ali adds that since the opening of our international border, tourist arrivals have totalled 72,132 between December 2021 and March of this year, with 21,390 visitors recorded for March alone.
He highlights while most tourists have come from Australia, the gradual easing of global travel restrictions suggests that arrivals from other source markets are expected to increase.
The Governor says this will generate positive spillover benefits to other connected industries as well.
However, Ali further noted that Fiji is not immune to the turbulent global developments and the pass-through of rising commodity costs to domestic prices.
In March, imported inflation contributed three percent to overall headline inflation of 4.7percent, and Ali says this was mainly driven by higher food and fuel prices, as well as prices of all other related commodities.
Ali highlights that, given the added price pressures, headline inflation is now forecast to reach five percent, up from the earlier projection of 4.5 percent, by the end of 2022.
The RBF Governor also states that, as at Wednesday, banking system liquidity remains high at over two billion dollars, placing downward pressure on lending rates as commercial banks’ cost of funds hovers near historical lows.