[Photo: FILE]

Fiji needs to accelerate efforts to diversify its economy beyond tourism to better withstand global shocks, maintain sustainable growth, and strengthen foreign exchange earnings.

Head of the Department of Economic Development and Sustainable Studies at the Fiji National University, Ashwin Deo, says tourism remains Fiji’s leading source of foreign exchange.

However, he says relying heavily on one sector leaves the country vulnerable to crises beyond its control.

Deo points to the economic downturn during the COVID-19 pandemic as a clear example of the risks associated with overdependence on tourism.

“So, I would say there is one term known in financial economics: do not put all the eggs in one basket. Too much or heavy reliance on tourism, we have already faced the difficulty during COVID. We have seen that our economy really declined.”

Deo says sectors such as agriculture, health, education, the digital economy, fisheries, and the blue economy have the potential to strengthen Fiji’s economic resilience and create new sources of foreign exchange.

He stresses that diversification should complement, rather than replace, tourism, with continued support needed for the industry while developing other sectors.

University of the South Pacific economics lecturer Dr Nilesh Chand says Fiji has untapped potential in several industries.

“From my point of view, Fiji should also diversify into other kinds of products, not the raw type of products, but products that can gain value in terms of finished products, so they can earn more foreign exchange. Also, business processing and outsourcing.”

Economists say expanding Fiji’s economic base would not only increase foreign exchange earnings but also provide greater stability as the country faces external pressures, including rising fuel costs and global geopolitical uncertainties.