Tourism recovery boosts Fiji's economy: ADB

April 12, 2024 12:28 pm

The Asian Development Bank in its April outlook says continued recovery in tourism boosted Fiji’s economic growth last year.

It says pent-up demand led to record visitor arrivals despite high global inflation and tight monetary policies in key tourism markets.

The ADB further states that tax reforms and increased demand supported robust government revenue despite tight labor market conditions from worker migration.

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However, it says the primary sector’s contribution declined while industry rose moderately.

The ADB states that Fiji’s economic outlook is sluggish due to a projected slowdown in travel demand and significant capacity limits in tourism.

It adds major government-led reforms are likely to generate new private sector investment but their full impact may not be felt for several years

Fiji’s Gross Domestic Product grew by continued strong growth in tourism.

It says services buoyed by a boost in visitor arrivals continued as the main driver of economic activity adding 6.9 percentage points

The ADB says this had positive spillover effects on wholesale and retail trade, transportation, construction and finance.

It says lower agricultural production led to its smaller contribution to GDP.

Sugar and timber production fell significantly in due to adverse weather conditions and factory disruptions.

Visitor arrivals in exceeded pre-pandemic levels.