Fiji and ADB

ADB supports Fiji’s strategic objectives through policy analysis and advice, sovereign and private sector financing facilities, and strategically targeted technical assistance and knowledge services.

Economic forecasts for Fiji

Figures are based on the latest edition of ADB's Asian Development Outlook, which analyzes economic and development issues in Asia and the Pacific. This includes forecasting the inflation and gross domestic product growth rates of economies throughout the region.


 

Comparative economic forecasts

The latest available economic data for Fiji compared to countries in the Pacific.


 

Policy Challenge—Boosting Tourism Capacity for Sustained Recovery

Over the next few years, limited tourist accommodation might slow sustainable economic growth. Currently, there are 13,000 hotel rooms available from 421 licensed accommodation providers. There is also a growing number of unlicensed short-term accommodation providers on platforms such as Airbnb.

The government should act to sustain tourism growth and keep hotel pricing competitive. The government can help in three ways. It needs to ease impediments to domestic and foreign tourism investment; improve tourist infrastructure, particularly in outer islands; and consider alternative forms of tourism.

Fiji should act quickly to attract more investment in tourism. Potential investors, particularly foreign investors, likely see the government’s complex foreign investment procedures as a barrier to investment in tourism. The government should accelerate efforts to streamline and expedite investment processes while simultaneously prioritizing environmental protection and promoting sustainable tourism. Stakeholders see delays in finalizing and obtaining approval for an Environmental Impact Assessment as a critical obstacle to realizing investments. To address this, the government has established an interministerial body to help streamline investment-related processes.

Fiji can also work on spreading tourism activity and benefits to more areas. Currently, 75% of hotel rooms are concentrated in the Coral CoastNadi corridor on the country’s largest island, Viti Levu. Fiji could spread tourism benefits by improving transportation connections to outer islands like Vanua Levu, Fiji’s second-largest island. The government, with support from development partners, is upgrading airports in Savusavu and Labasa, the two primary tourism hubs on Vanua Levu. In addition, there is an ongoing feasibility study for constructing a new airport capable of accommodating larger aircraft. While sea transportation remains viable, the initial focus should be on enhancing key connecting jetties to Vanua Levu. Other potential areas such as Taveuni and Sun Coast could also benefit from increased marketing, contributing to a more widespread distribution of tourism benefits. Spreading tourists out to more areas may help relieve the strain on hotel room availability and hotel prices around Viti Levu.

The government can further explore alternative forms of tourism such as sports, retirement and medical tourism. In 2022, a Fiji rugby team joined the Super Rugby Pacific competition, which includes teams from Australia and New Zealand. It is estimated that the six games Fiji hosted during the following season resulted in 40,328 nights of overseas visitor stays that would not have happened otherwise. The positive effects of these events can be effectively utilized during Fiji’s tourism offseason. Fiji also has the potential to attract medical tourists from neighboring Pacific countries who travel as far as Asia for medical treatment. For this to happen, Fiji requires additional privately operated hospitals to enhance its healthcare infrastructure. A study by the International Finance Corporation indicates opportunities for private sector investment in advanced diagnostic facilities and specialist care hospitals. Fiji can build on its two recent public-private partnerships for its Lautoka and Ba hospitals.

More resources

Asian Development Bank and Fiji: Fact Sheet

Asian Development Bank and Fiji: Fact Sheet

The Fact Sheets summarize ADB's partnerships with member economies, providing key facts and figures and an overview of activities and future directions.

Asian Development Outlook (ADO) April 2024

Asian Development Outlook

The Asian Development Outlook analyzes economic and development issues in developing countries in Asia.

Key Indicators for Asia and the Pacific 2023

Key Indicators

The Key Indicators for Asia and the Pacific publication presents data regarding the economic, financial, social, and environmental situations in a broad range of countries across the region.

Basic Statistics 2024

Basic Statistics

The Basic Statistics brochure presents data on selected social, economic, and SDG indicators such as population, poverty, annual growth rate of gross domestic product, inflation, and government finance for economies in Asia and the Pacific.