Prices surge amidst supply-demand gap

December 1, 2023 12:33 pm

The Fiji Hotel and Tourism Association has shed light on the complex challenges impacting the pricing dynamics of the country’s tourism sector.

Chief Executive, Fantasha Lockington emphasizes the surge in prices is not exclusive to hotel rooms but extends across various industries, affecting both local businesses and consumers.

Lockington says the escalating costs of labor, materials, and imports are significant contributors to the price hikes.

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“So the price of rooms has gone up, there’s a huge demand, and there’s a smaller supply, so that’s always going to be an issue as well. So you cannot expect prices to be the same as they were in 2020 or even 2019, because many things have changed, not just within our economy but from the impacts of what’s happening around the world.”

Lockington adds Fiji, being a nation that relies heavily on imports, is grappling with increased expenses associated with obtaining goods from overseas.

She has highlighted that there is a substantial gap in the number of available hotel rooms and the industry needs an additional 3000 rooms to meet the escalating demand.