RBF Deputy Governor gives positive economic report
September 27, 2015 1:48 am
The Tourism sector is continues to be our strongest performer according to figures from the Reserve Bank of Fiji.
Deputy Governor Arif Ali during a presentation on the status of the Fijian economy highlighted the key areas of growth.
The tourism sector can take much of the bragging rights for the economic boom we’re going through.
In the first 6 months of 2016, there was a 10.6% increase in visitor arrivals.
“Our forecast for this year in terms of this year in terms of visitor arrivals was a growth of five percent based on the indicators that we see now we will surpass the record that we achieved last year of just below 700,000 visitor arrivals. I think Tourism earnings this year will most probably be close to 1.5 or slightly more than 1.5.”
Arif Ali adds that has been a lot of issues regarding leakage in the Tourism Industry – some saying 60% of the earnings leave Fiji -but that’s not true.
“The 60 percent is not correct its actually 56% and that’s called induced leakage. When Tourism earnings is $1.5 billion and total contribution to the economy multiplier effect is 3 so it becomes $4.5 billion – the leakage because of this $4.5 billion is 56% – but cannot say when earnings is $1.5 billion is 56% no – its actually 24%.”
With increased infrastructure and construction works, cement production is up by 15.6 percent and electricity production for the first seven months of this year was up by 2.2 percent and consumption was up by five percent.