Leakages in tourism industry have declined
February 1, 2019 1:33 pm
Leakages in the tourism industry are mostly derived from imports, dividends, profits and service fees and charges.
Leakage is the way in which revenue generated by tourism is lost to other countries’ economies.
This was revealed by Reserve Bank Governor, Ariff Ali today while presenting the 2017/2018 Annual Report to the Parliamentary Standing Committee on Social Affairs.
Ali says a study on direct leakage from the industry conducted in 2011 shows a ratio of 9.3 percent.
The last survey was conducted in 1990 which stated Fiji’s tourism industry leakages stood at 12 percent.
He adds Fiji is now retaining more from every tourism dollar received and leakages have declined.
Ali says over the last 25 years, tourism earnings have increased by almost six fold, from $328million in 1992 to above $1.9 billion in 2017.
The Governor adds there are now more Fijian owned businesses in the tourism sector such as the Fiji National Provident Fund, Vision Group, and the Tanoa Group.