Location: Sofitel Fiji Resort and Spa
Tourism Fiji Board of Directors,
Permanent Secretaries,
Industry Partners,
Ladies and Gentlemen,
Thank you, Rob for the welcome and Bula Vinaka everyone!
I know most – if not all – of you have been meeting quite regularly with my team in different fora. You have also been speaking with our regulatory agencies – who I am told have all been very supportive of the industry.
I understand the Reserve Bank of Fiji (RBF) and Governor, personally, has also been a great support to the industry, especially as we prepare for the 2021-2022 National Budget. To continue that dialogue, we have the Deputy Governor here with us, who is also available to respond to your questions.
Ladies and Gentlemen,
I want today to build on the great momentum we have kept and the greater partnership we have forged as public and private sectors. My team and I are here today to listen and share with you updates, so I want us to be as interactive as we can.
While you have been meeting through various forums such as the Tourism Recovery Team (TRT) or with the COVID-19 Risk Mitigation Taskforce – we want to hear from the wider industry to allow us to collectively arrive at solutions. We may not be able to address all your concerns immediately, but we will take them on board.
It is hard to imagine, it has now been a year since the pandemic. The UN World Tourism Organisation notes that international tourism has gone back to levels 30 years ago. In what we hoped would have been another stellar year, 2020 brought over 80 percent drop in visitor arrivals – a level not seen since 1971.
In January this year, visitor numbers were down by an alarming 98.5 percent from approximately 65,000 in January 2020 to 1,000. This reflects arrivals from the 19th century.
This sets not just the industry, but the Fijian economy back years.
Ladies and Gentlemen,
On a positive note, our foreign reserves remain at comfortable levels of around $2.2 billion, sufficient to cover approximately 7 months of retained imports. This has been underpinned by a strong foreign reserves position prior to COVID-19 and current low demand for imports. Imports have declined by 34 percent for the period January to November 2020, compared to the same period in 2019. This has resulted in a 44 percent reduction in the trade deficit.
In terms of monetary policy, we continue to have a large surplus liquidity of over $896.5 million in the financial sector. This has helped keep interest rates low. Lower interest rates will play an important role in the long-term recovery of the economy when credit risk normalises in a post COVID-19 environment.
We have the Permanent Secretary here today as well, who will elaborate on the budget policies for the new financial year.
Ladies and Gentlemen,
The tourism industry contributed about $1 billion towards Government tax revenue each year alone. There are two ways to put this into perspective. First, the tourism industry has been our biggest economic contributor. Second, our economic performance hinges on the industry, for the good or the bad.
So, it is important we do what we can to support each other as we endeavor to reinvent our businesses, our communities, and of course the industry and the economy at large.
Through the TRT, we’ve managed to solve some immediate challenges of the industry concerning employment. The Ministry of Employment just yesterday had an awareness workshop to look at matters, such as how we treat leave without pay and work better with our employees.
We’ve also managed to accommodate exemption of the 6-month surveys with new vessel surveys now being issued for 12 months. I know this was very well received by our marine operators. We’ve also had the LTA CEO come down to Nadi to personally visit some of you and to understand and appreciate on the ground challenges.
Ladies and Gentlemen,
There is still more to do as far as policy interventions go, I assure you, we will endeavour to find the most practical solutions.
No one in the industry is forgotten. Whether you manage a hotel, run a restaurant or have a tour company. Everyone contributes to the greater tourism ecosystem. We have far too much riding on the industry, on you and that is why we are all here.
Your immense contribution to fueling almost a decade of economic growth pre-COVID has not gone unnoticed. In fact, any form of recovery is dependent on the resumption of quarantine free international travel and tourism.
Ladies and Gentlemen,
Where there are challenges, there are opportunities. Opportunities to re-look at traditional ways of business, opportunities to attract new markets, opportunities to build new skills amongst the industry’s labour force.
I am glad to learn that we are now marketing some of our key travel initiatives, such as the Blue Lane and Luxury Vacation in Paradise. I look forward to hearing more from you.
I know for the last couple months our focus has been on the vaccination rollout, a quintessential next step towards the new normal. For now, vaccinating our population is the clearest economic policy.
Your support towards the rollout is also highly appreciated. I know we are hopeful once we are all vaccinated, we can refer to COVID-19 in the past-tense.
A major element that underpins all of these opportunities is our preparedness and our ability to maintain capacity as well as competitiveness. No doubt the opening of borders is foremost.
Your contribution and support, especially during this time, gives hope and reassurance to Fijians not only in the tourism industry, but in agricultural food and beverage, retail and other industries that Fiji will return to prosperity soon.
It won’t be easy to get back to where we were, but we will walk this journey together. In a while, we will also discuss our aspirations of the 2021-2022 National Budget. In considering our economic outlook and the budget deficit we are trying to maintain, I hope that the industry can align itself to our strategic priorities.
We delivered a historical budget in the last financial year. Just as we did last year, we have to remember that we will all need to make some hard sacrifices. I know the Fijian tourism industry is resourceful so please, we welcome your contribution.
With those few words, I welcome you all to contribute as we go through today’s Talanoa session.
Vinaka.