Plans are underway to construct 5,200 hotel rooms in Fiji, signalling an increase in investor interest.

However, Tourism Minister Viliame Gavoka says while the demand for hospitality services is evident, challenges lie in translating the interest into reality.

Gavoka says the major factor influencing investment decisions is the average room rate.

He adds that investors eyeing Fiji are enticed by the substantial yield potential, driven by the current high room rates observed in the country.

“Investors are very keen to come to Fiji. When you see people paying a good rate in a destination, the investor will say, Okay, I want to put my hotel there. I want to build a hotel in there.”

Gavoka says the regulatory regime has to be upgraded.

“It’s a challenge. And look at the sustainable tourism framework there are too many agencies here that you have to go through for somebody to say, yes, you can do it. We want to rationalize that.”

Gavoka adds that a streamlined process is crucial to ensuring that the ease of doing business is enhanced, promoting a more investor-friendly environment so that Fiji is able to compete with other markets.