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ECONOMIC OVERVIEW

FIJI

SUBMITTED BY,
Shefali Pandey
08D1269
BBM C
Finance 2
FIJI- COUNTRY PROFILE

Fiji, officially the Republic of the Fiji Islands, is an island nation in Melanesia in the South Pacific
Ocean about 2000 km northeast of New Zealand's North Island. Its more immediate neighbours
are Vanuatu to the west, France's New Caledonia to the southwest, New Zealand's Kermadec to the
southeast, Tonga to the east, the Samoas and France's Wallis and Futuna to the northeast and
Tuvalu to the north. Fiji has had inhabitants since the second millennium B.C. In the 17th and 18th
centuries, the Dutch and the British explored Fiji. Fiji was a British colony up until 1970; British
occupation lasted almost a century. Because of the abundance of forest, mineral, and fish
resources, Fiji is one of the most developed economies in the Pacific island realm. Today, the main
sources of foreign exchange are its tourist industry and sugar exports. The country's currency is
the Fijian dollar.

The majority of Fiji's islands were formed through volcanic activity started around 150 million
years ago. Today, some geothermal activity still occurs on the islands of Vanua Levu and Taveun.
Fiji comprises an archipelago of more than 332 islands, of which 110 are permanently inhabited,
and more than 500 islets, amounting to a total land area of ca. 18,300 km2. The two major islands,
Viti Levu and Vanua Levu, account for 87% of the population of almost 850,000. The former
contains Suva, the capital and largest city. Most of Fijians live on Viti Levu's coasts, either in Suva
or in smaller urban centers. Viti Levu's interior is sparsely inhabited due to its terrain.

Fiji has a local government system where city and town councils fall under the general supervision
of the Ministry of Local Government and Urban Development. President Ratu Epeli Nailatikau
became Fiji's president, after a high court ruled that the military leadership was unlawfully
appointed after a 2006 coup. During World War II, the United Kingdom allowed for many
thousands of Fijians to volunteer to aid in Allies' efforts via their attachment to the New Zealand
and Australian army units. The Republic of Fiji Military Forces (RFMF), comprising of land and
naval units defend and protect Fiji.
QUICK FACTS:

• Full name: Republic of the Fiji Islands


• Population: 854,100 (UN, 2010)
• Capital: Suva
• Area: 18,376 sq km (7,095 sq miles)
• Major languages: English, Fijian, Hindi
• Major religions: Christianity, Hinduism, Islam
• LIfe expectancy: 67 years (men), 72 years (women) (UN)
• Monetary unit:1 Fijian dollar = 100 cents
• Main exports: Sugar, clothing, gold, processed fish, timber
• GNI per capita: US $3,950 (World Bank, 2009)
• Internet domain:.fj
• International dialling code:+679

The press
• Daily Post- private daily
• Sartaj - Hindi-language weekly
• Shanti Dut - Hindi-language weekly

Television
Fiji TV- operates national free-to-air channel Fiji 1 and pay-TV service Sky Fiji

Radio
Fiji Broadcasting Corporation- state-owned commercial company, operates Fijian-language Radio
Fiji One, Hindi-language Radio Fiji Two, music-based Bula FM, Hindi station Mirchi FM, music-
based 2day FM
ECONOMY

Fiji, endowed with forest, mineral, and fish resources, is one of the more developed of the Pacific
island economies, though still with a large subsistence sector. Natural resources include timber,
fish, gold, copper, offshore oil potential, hydropower. Fiji experienced a period of rapid growth in
the 1960s and 1970s but stagnated in the 1980s. The coup of 1987 caused further contraction.

Economic liberalization in the years following the coup created a boom in the garment industry
and a steady growth rate despite growing uncertainty of land tenure in the sugar industry. The
expiration of leases for sugar cane farmers (along with reduced farm and factory efficiency) has
led to a decline in sugar production despite a subsidized price. Subsidies for sugar have been
provided by the EU and Fiji has been the second largest beneficiary after Mauritius.

Urbanization and expansion in the service sector have contributed to recent GDP growth. Sugar
exports and a rapidly growing tourist industry — with 430,800 tourists in 2003 and increasing in
the subsequent years — are the major sources of foreign exchange. Fiji is highly dependent on
tourism for revenue. Sugar processing makes up one-third of industrial activity. Long-term
problems include low investment and uncertain property rights. The political turmoil in Fiji has
had a severe impact on the economy, which shrank by 2.8% in 2000 and grew by only 1% in
2001.

The tourism sector recovered quickly, however, with visitor arrivals reaching pre-coup levels
again during 2002, which has since resulted in a modest economic recovery. This recovery
continued into 2003 and 2004 but grew by 1.7% in 2005 and grew by 2.0% in 2006. Although
inflation is low, the policy indicator rate of the Reserve Bank of Fiji was raised by 1% to 3.25% in
February 2006 due to fears of excessive consumption financed by debt. Lower interest rates have
so far not produced greater investment for exports.

However, there has been a housing boom from declining commercial mortgage rates. The tallest
building in Fiji is the fourteen-storey Reserve Bank of Fiji Building in Suva, which was inaugurated
in 1984. The Suva Central Commercial Centre, which opened in November 2005, was planned to
outrank the Reserve Bank building at seventeen stories, but last-minute design changes made sure
that the Reserve Bank building remains the tallest.

In September 2002, the government announced a 20-year development plan. Among other things,
it aims to give indigenous Fijians a great stake in the economy. The plan envisages tax-relief to
businesses owned or managed by ethnic Fijians, along with greater protection for indigenous land
and fishery rights.

A major aim of the Fijian government is to achieve self-sufficiency in rice production. Cattle
farming, fishing, and forestry (especially pine trees) are being encouraged in order to diversify the
economy; the leading manufacturing industries involve the processing of primary products. On 14
April 2005, the Cabinet approved Prime Minister Laisenia Qarase's proposal to develop a biofuels
industry. Under the plan, ethanol is to be developed as a complement to the sugar industry, with
the hope of alleviating Fiji's dependence on imported fossil fuels such as petrol.

On 15 August, Qarase said that the United Nations Development Programme (UNDP) had granted
assistance to Fiji to develop its biofuels project. Transformation of the Fiji Sugar Corporation into
an energy and sugar company would result in a turnover of F$1 billion by 2025, he said, and
would cut imports of crude oil, generate export earnings, and provide a source of electricity.
Energy could be produced from copra, forest, and agricultural products, as well as sugar. He
touted the scheme as necessary for diversifying and strengthening the sugar industry for its own
survival and the nation's economic good. He said that the government of India had loaned F$86
million for the upgrading of Fiji's sugar mills, which would be completed in time for the 2007-
2008 crushing season.
On 28 December 2005, John Teiwa of the Coconut Industry Development Authority announced
that a 20-year plan for the coconut industry would be launched in 2006. Finance from
international investors, including the government of India, would be sought to develop the
processing of virgin and extra virgin coconut oil, with a view to venturing into foreign health
markets. The government expected an annual profit of F$120 million from the venture, Fiji Village
reported. Trials for the generation of fuel from coconut oil were also in progress, Teiwa said.

Fiji’s economy is anticipated to make a modest recovery of 1.8 percent in 2010. The growth is
expected to be led by the manufacturing, agriculture & forestry, financial intermediation,
wholesale & retail trade, hotels & restaurants, construction, mining & quarrying, real estate, fishing
and other community, social & personal services sectors. The positive outlook for Fiji’s economy is
supported by the economic recovery in selected trading partner countries, with an expected pick
up in export demand and higher visitor arrivals.

A positive outlook is expected for the tourism industry in 2010, based on improvements in visitor
numbers in the latter half of 2009 and supported by the introduction of new airlines and routes,
discounted package deals, active promotions, campaigns and advertising by Tourism Fiji.
On merchandise trade, Fiji’s total exports in 2009, was $1, 230 million whilst total imports were
$2,807 million. Compared to the corresponding months of 2008, total exports fell by 19.6 percent
due to lower receipts from re-exports of mineral fuels and low earnings from sugar, mineral
water, woodchips, garments, uncooked pasta, flour, and taro. However, in 2010, exports are
projected to grow by 8.9 percent driven by high earnings anticipated from re-exports, gold and
fish. The rebound is also consistent with the recovery of external demand as global economy
recovers.

Total imports on the other hand decreased by 28.3 percent compared to performance in 2008 due
to decline in imports of mineral fuels, machinery & transport equipment, chemicals and allied
products. In 2010, imports are projected to rise by 11 percent, led mainly by higher payments for
mineral fuels, machinery & transport equipment, food and manufactured goods. Public capital
projects are also expected to drive the imports of machinery & transport equipment.

As at 31st August 2010, foreign exchange reserves were around $1,186 million, equivalent to
around 3.7 months of imports of goods and non-factor services.

Fiji’s economic performance has been erratic over the past two decades. A major
reason for this is the rapidly changing institutional environment in which the economy
must perform.
Since 1986, there have been 13 governments, each lasting an average of just 16
months. The institutional environment has ranged from military dictatorship to
democracy.

Gross Domestic Product summary [FJD]

Fiji’s GDP at current factor cost for 2009 is provisionally estimated to grow at -2.1 per cent in
2009. This is an absolute decrease of 6.7 per cent from 2008 when the growth was 4.6 per cent.
Table 1 gives data on the GDP at current price, at factor cost and at market price by activity from
2005 to 2009.

GDP Constant Price

Fiji’s GDP at constant prices of 2005 at factor cost for 2009 is provisionally estimated to grow at
-3.0 per cent in 2009. This is an absolute decrease of 3.2 per cent from 2008 when the growth
was 0.2 per cent. Table 2 gives data on the GDP at constant price, at factor cost by activity from
2005 to 2009.

Level of GDP

Fiji’s constant price GDP is provisionally estimated at $4248.8 million for the calendar year 2009.
Of this $347.5 million or 8.1 per cent was contributed by non-monetary production; that is, from
the own account activities in the agriculture, fishing and forestry and construction sectors and the
notional owner occupied dwellings in the real estate sector. When compared to 2008, GDP in
2009 shows a decline of $130.4 million. Per capita GDP at constant price for 2009 was $5037.55
compared to $5233.78 in 2008

Composition of GDP

Transport, storage and communication sector contributes most to the GDP. In 2009, it accounted
for 15.1 per cent of the GDP compared to 14.3 per cent in 2008. Manufacturing is the second
highest contributor. In 2009, it accounted for 14.0 per cent of the GDP compared to 13.8 per cent
in 2008. The third highest contributor is the wholesale and retail; repair of motor vehicles, motor
cycles and personal and household goods. In 2009 it accounted for 11.3 per cent of the GDP
compared to 11.7 per cent in 2008.

Growth in GDP

The economy declined in 2009, from 0.2 per cent growth in 2008 to -3.0 per cent decline. Sectors
contributing to the decline are:
• Financial intermediation declining by 20.5 per cent.
• Fishing declining by 13.0 per cent
• Mining and quarrying declining 13.8 per cent.
• Agriculture declining by 11.9 per cent.
• Forestry declining by 8.4 per cent.
• Wholesale and retail; repair of motor vehicles, motor cycles and personal and household
goods declining by 5.9 per cent
• Other community, social and personal service activities declining by 7.9 per cent
• Construction declining by 3.3 per cent.
• Hotels and Restaurants declining by 0.9 per cent
• Education declining by 0.5 per cent

Sectors that cushioned the decline in the above sectors are:


• Public administration and defence growing by 26.0 per cent
• Health and social work growing by 10.5 per cent.
• Transport, Storage and Communication growing by 2.8 per cent
• Real Estate and Business Services growing by 1.3 per cent
• Electricity and Water growing by 1.0 per cent

Indicator 2005 2006 2007 2008 2009


GDP (per capita) current 5232.5 5475.9 5587.3/td> 5808.1 5654.5
GDP (per capita) at constant 2005 prices 5232.5 5310.2 5252.3 5233.0 5046.1
GDP Current Prices [FJD million] 4327.3 4545.0 4648.6 4861.4 4761.1
GDP Current Prices (Annual Growth Rate %) 4.7 2.4 3.6 5808.1
GDP Constant (2005 prices) [FJD million] 4327.3 4407.5 4369.9 4379.2 4248.8
GDP Constant (2005 prices) (Annual Growth Rate
1.5 -1.1 -0.4 -3.6
%)

Consumer Price Index

The Consumer Price Index, which covers price changes in urban areas [Suva, Lami, Nausori,
Lautoka, Nadi, Ba and Labasa], has weights derived from the Household, Income and Expenditure
Survey of 2002/2003.

There have been two measures of inflation used in Fiji. One compares the average CPI over the
past twelve months with the average CPI over the previous twelve months. The other, which is the
one used in most countries, compares the CPI in the current month with the CPI in the comparable
month of the previous year [ie. 12 months previously].

The average annual rate of inflation for the twelve months to November 2010 [i.e. comparing the
average CPI for the 12 months to November 2010 with the average for the 12 months to
November 2009] stands at 5.7 percent while the month – on-comparable - month inflation rate
[compared with November 2009] stands at 4.0 percent.

The All Item Consumer Price Index [CPI] for the month of November, 2010 registered an increase
of 2.1 percent over October 2010 [126.4] and stands at 129.0.

Items that are deriving the sectional changes over the previous month are as follows:

Food: -3.3%
Lower prices were recorded for cereals, preserved meat, fresh fish, fresh fruits, mineral water,
yaqona, dairy products, fats and oils, tea, top dressings and market items such as long bean, long
green chilly, okra, eggplant, cucumber, rourou, bele, pumpkin, tubua, onion, garlic, dalo, cassava,
split peas and blue peas.

Alcoholic Drinks and Tobacco:-0.2%


Lower prices were recorded for some alcoholic spirits and warm beer.

Housing: +0.0%
Some price changes were recorded in this section but these changes balanced out.

Heating and Lighting: +46.6%


A higher price was recorded for electricity.

Durable Household Goods: +0.0%


Some price changes were recorded in this section but these changes balanced out.

Clothing and Footwear: +0.4%


Higher prices were recorded for men’s, women’s and children’s wear and men’s, women’s and
children’s footwear.

Transport: -0.4%
Lower prices were recorded for petrol and diesel.

Services: 0.0%
No change was recorded in this section

Miscellaneous: +0.1%
Higher prices were recorded for medical goods, toiletries and laundry goods.
Annual
Heating Durable
Average Clothing & Seasonally
Period A Housing & Household Transport Services Miscellaneous
Inflation Footwear Adjusted
Lighting Goods
Rate %

National - Percentage change


Weight 5 99.3 92.2 21.2 29.6 162.4 86.3 51.9

Annual 2008 4 0.9 12.2 3.6 2.1 12.4 0.4 9.2


Average
2009 6 1.5 -5.3 10.4 3.8 -0.7 1.6 10.7

National
Weight 5 99.3 92.2 21.2 29.6 162.4 86.3 51.9

Annual 2008 7.7 1 106.5 118.5 107.9 106.6 117.8 103.2 121.0 115.7
Average 2009 3.7 1 108.1 112.2 1119.1 110.7 117.0 104.9 133.9 120.0

Central
Weight 5 93.3 95.9 31.4 31.2 158.8 100.0 51.7
2008 7.1 1 103.1 113.6 108.0 108.7 117.4 102.6 118.8
Annual
2009 3.8 1 104.5 107.8 117.4 112.1 116.3 101.9 132.4
Average
Western
Weight 6 87.0 83.7 32.1 34.5 155.6 81.0 54.3
2008 8.8 1 112.0 126.6 109.9 101.9 119.3 105.4 125.9
Annual
2009 3.9 1 113.6 121.0 124.9 106.1 119.7 109.6 138.8
Average
Northern
Weight 4 86.8 86.3 41.6 37.2 140.8 76.9 52.2

Annual 2008 8.6 1 117.3 130.0 100.9 104.0 116.2 100.0 121.2
Average 2009 2.8 1 122.0 118.9 107.9 109.5 113.4 102.8 131.1

Balance of Payments

balance of payments [FJD Million]

2006 2007 2008 2009[p]


- - -
Balance on Current Account -449.8
1036.6 773.6 1030.4
Balance on Capital Account 0.8 21.3 25.7 52.9
Balance on Financial Account 1135.3 487.4 696.4 292.1

Foreign Aids Received by Government of Fiji [FJD Million]


2000 2001 2002 2003 2004 2005 2006 2007[p]
Cash Grants 2.1 0.5 0.6 2.0 3.4 4.4 6.4 3.5
Aid in Kind 14.7 22.1 30.1 44.0 54.4 54.0 30.2 45.2
Total 16.8 22.6 30.7 46.0 57.8 58.4 36.6 48.7
Overseas Merchandise Trade
summary of merchandise trade statistics [FJD000]

Period Domestic Exports Re-Exports Total Exports Imports Trade Balance


2000 995,986 158,814 1,154,800 1,822,222 -667,422
2001 990,708 230,621 1,221,329 2,017,051 -795,722
2002 874,096 258,092 1,132,188 1,970,000 -837,812
2003 958,323 310,900 1,269,223 2,284,730 -1,015,507
2004 950,701 254,818 1,205,519 2,501,639 -1,296,120
2005 847,604 344,974 1,192,578 2,722,787 -1,530,209
2006 834,271 367,302 1,201,573 3,124,342 -1,922,769
2007 828,823 380,990 1,209,813 2,890,072 -1,680,259
2008 982,805 488,223 1,470,968 3,601,404 -2,130,376
2009[p] 894,830 335,511 1,230,341 2,807,950 -1,577,609

Government Finance - Summary Table


Central Government Finance Summary [FJD000]

Year 2006 2007 2008 2009[p]


Current Revenue 1,363,281 1,388,288 1,454,212 1,410,555
Current
1,375,925 1,369,538 1,445,749 1,551,998
Expenditure
Surplus/Deficit -12,644 18,750 8,463 -141,443

Current Revenue Analysis by Source [FJD000]

Year 2006 2007 2008 2009[p]


Total Current Revenue Current 1,363,281 1,388,288 1,454,212 1,410,555
Customs Duties and Port Dues 781,485 791,338 804,959 756,508
Income Tax and Estate and Gift Duties 412,804 441,374 438,547 452,975
Fees, Royalties Sales and Reimbursement 64,098 77,728 122,228 112,453
All Other Income n.e.c. 104,894 77,848 88,478 88,619
Fiji Stock Exchange

Fiji, a former British Colony gained independence in 1970. In the 1980s the government of Fiji
decided to focus on the development of the capital market as a component of its economic policies.
Fiji has faced tough economic challenges in the last 20 years and availability of capital for
increasing investment has been a major concern. This problem has been compounded by the
scarcity of domestic International Research Journal of Finance and Economics - Issue 6 (2006)
118 capital, a fall in foreign investment and huge trade account deficits. These problems caused
the government to adopt various measures to prevent economic instability and improve the well
being of the country. The financial sector deregulation in Fiji began in the early 1980s and gained
attention in the various economic plans. Development of the financial system focused particularly
on:
• strengthening and deepening of the financial structure
• promotion of a competitive financial environment
• introduction of new instruments and orientation of public debt policy towards a more flexible
and market determined regime
To achieve these objectives the government formulated various strategies. The Minister for
Economic Development, stated that “the government has to tackle the most serious problems of
mobilizing domestic savings to finance the nation’s investment program if it is to attain the desired
goals (Toganivalu, 1978). This statement indicated a need for a mechanism, which can be an
intermediary in the savings and investment process. So the development of the stock market was
an integral element of the government overall strategy in order to utilize the private sector as the
engine for economic growth. Fiji’s stock exchange, the South Pacific Stock Exchange (SPSE) which
was formerly known as Suva Stock Exchange (SSE) had existed since 1979, but it initially operated
only as
a trading post. For the stock market the commencement of a formal call market trading from 1st
July 1996 at the Suva Stock Exchange (SSE) and the establishment of the Capital Markets
Development Authority (CMDA) in 1997 have added momentum to the development of the equity
market. In December 2000 Fiji’s stock market name was changed from SSE to South Pacific Stock
Exchange (SPSE) to allow for listing and investing opportunities in other jurisdictions in the South
Pacific. Currently there are 16 companies listed on the Exchange with a market capitalization of
approximately $880 million compared with 10 companies with a market capitalization of $243
million in 2000. The number of trading sessions from 2003 has increased from 3 to 5 per week.
The government has also assisted in the development of the market by exempting tax on dividends
for listed companies and has commenced the float of shares in government owned enterprises. Like
other developing countries, Fiji’s stock market is also playing a crucial role in the economy. It
encourages companies to make IPOs and also provides a regulated market for the trading of
existing shares between investors. Its basic function is a secondary market role facilitating the
exchange of previously issued shares. It can be seen as an emerging stock market because there is
an increase in the market capitalization, stock market size and number of companies listed from
the period 1996 to 2005. Thus the market is in the development phase. But at the same time the
SPSE is said to be saddled with low liquidity over the entire period of 1996 - 2005, which is
evident on viewing the inactive market and the fact that Initial Public Offerings (IPOs) have not
sustained the momentum observed between 2000 and 2001. The subsequent section provides an
assessment of the performance of Fiji’s stock market, its current trading mechanism and some of
the current impediments of this market.

Market Size, 1996-2004


Market Cap/GDP(percentage)
1996- 114 2575 4.4
1997- 144 2571.1 5.6
1998 -175 2792.5 6.3
1999 -214 3238.8 6.6
2000 -243 3049.1 8.0
2001 -275 3199.5 8.5
2002 -769 3442.9 22.3
2003 -748 3546.2 (estimate) 21.1
2004 -882 3584.1 (estimate) 24.6
SWOT ANALYSIS

Strengths
• Stable exchange rate, low and stable inflation, competitive interest rates
• Fiji can attracts niche markets, in particular diving, fishing, honeymooners, cruise
• The population is educated, has a high literacy rate.
• Diverse Population-Unfortunately Fiji has not yet seen this as strength. Having a diverse nation
allows the product to also be diverse. Singapore recognizes this and markets its diversity and
proudly. For example, in Singapore “little India” and “Chinatown” have become major tourist
draws.
• Pacific Islanders are perceived as friendly and welcoming.
• Fiji is a multicultural society with vast intellectual capital.
• Fiji has a national air carrier ( Air Pacific).
• Financial support and investment from Australia and New Zealand
• Fiji has established industries other than tourism. Unlike most South Pacific Islands
• Fertile Lands- established industries- Fiji has multiple industries such as processing and growing
cash crops this means that the economy is not reliant on just one source of income
• A full range of accommodations are available from hostel to 5 star resort
• Strong awareness of Fiji around the world.
• Educated population- literacy levels are high compared to other competitor islands in the South
Pacific.
• Educational hub for the Pacific
• Strategically placed en route to North America and Asia, expand on being the “crossroads” of the
Pacific.
• Strong indigenous culture-indigenous Fijians have done a good job at keeping their culture.
• Ecosystem and Species diversity

Weaknesses
• Political instability and security: Fiji rates a poor 3 out of 5 in the UN political and security scale.
• Health risks and problems: Dengue Fever and Malaria are still threats in the South Pacific.
Recently there was a measles outbreak on one of the islands.
• Infrastructure: one of the main weaknesses is the road infrastructure. Many of them are in
disrepair and traffic is very congested.
• Pollution: a large population in Fiji means more vehicles. A good proportion of vehicles are old,
there are no regulations on fossil fuel emissions. The mountains and humid weather does cause
smog in tourism areas such as Nadi; therefore, this does effect to overall experience.
• Weather: typhoons and cyclones are common yearly occurrences. Most of the activities are
centered around island excursions by boats. Boats cannot sail during bad weather.
• Geographic Distance: Fiji is currently dependent on most of its tourism business from Australia,
NZ and US.
• Stereotyped/pigeonholed: Fiji has been known for a long time as a resort enclave destination.

Opportunities
• Tourism product diversification into new markets. This may include culinary tourism (schools
and tours) and nature tourism such as bird watching. Other activities may include native village
home stay or colonial tourism (sugar plantations). These activities would include both Indians and
Fijians.
• Increase the “stop over” market and cruise ship markets.
• Increased trade with Japan
• Promotion of Fiji to the expatriate Indian market
• Taking advantage of approved destination status with the Chinese markets
• Incentives for the film and television industry for revenue and promotion. “Survivor Fiji” was a
good example of this.
• Heritage and colonial tourism
• Increased festivals
• Work with other Pacific airlines and cruise companies to develop a “inter island hopper pass”
which is valid for multiple South Pacific islands.
• Many undiscovered areas of Fiji still remain such as Kadavu Island
• Has a product that could be more ecotourism orientated
• Niche markets such as MICE, business traveler
• Mature/seniors market
• Adventure tourism
• Packaging with other countries in the South Pacific/regional branching
• Community based cultural tourism tourism
• Other untapped markets such as Taiwan and Korea
• Cheap real estate by Western standards are available to resort developers.
Threats
• 40% of tourism business comes from Australia and NZ
• General civil unrest and racial tensions.
• Land ownership issues between current landowners and traditional chiefs.
• Increased gas prices will increase the cost of importing foods and goods.
• Ecologial issues which will affect tourism experience such as quality of water.
• Climate change will lead to warmer water which will start to bleach (kill) the coral. Sea levels
will have an affect on the small islands.
• Heightened air travel security will make flying a less enjoyable experience.
• Other emerging destinations could make Fiji less desirable in the future.
• Fiji is still reliant on foreign aid for basic services for healthcare
• Land ownership disputes, access to fishing grounds/ native reserve commission issues
• Climate change rising sea levels/weather
• Natural disasters/weather/typhoons
• Loss of intellectual capital from emigration
• Good investor incentives may lead to leakage and a reduction on the multiplayer effect.
• Leakage from cruise ships
• Developed tourism can lead to inflation and the cost of land to increase
• Influx of tourism can lead to demonstration effect on small islands .

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