Tourism earnings projected to hit $2 billion: Westpac

February 21, 2023 10:37 am

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Tourism earnings are projected to grow further and hit the two billion dollar mark for this year and 2024.

This is according to the Westpac Wave quarterly economic review, which states that the growth is in line with the recovery in visitor arrivals and rising per-diem expenditure.

It says the tourism earnings contracted significantly in 2020 and 2021 as earnings across all tourism source markets fell.

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However, it says tourism earnings rose substantially on the back of borders reopening and the subsequent increase in visitor arrivals coupled with higher per-diem expenditure last year.

Westpac Fiji also says that the inflow of personal remittances continues to support the economy and boost foreign reserves.

It says inward remittances totalled $842.9 million cumulative to October 2022, higher than the annual amount received in 2021, led by growth in personal transfers.

The strong growth in personal transfers was largely driven by inflows via mobile money.

According to the Westpac Wave quarterly economic review, while the widening trade deficit will put some pressure on foreign reserves this year, it will be financed by increasing tourism earnings and remittances.

It says foreign reserves are projected to remain at comfortable levels in the medium term.