Set in the heart of the South Pacific, the Fiji Islands are widely known as a premier vacation and resort destination, making it a great location for business opportunities in the hotel industry.
Porcelain sandy beaches, turquoise blue water, as well as local dinning featuring the freshest of local fare and world-class hospitality drew well in excess of 700,000 international visitors in 2015 to the magnificent 333 islands of Fiji.
- Australia and New Zealand are by far Fiji’s biggest tourist markets, accounting for 70 percent of the industry’s total earnings. In 2014 alone, Australian visitors contributed 54 percent and New Zealand 16 percent. The next largest is the United States, making up around 7.9 percent of the market, followed by Europe at 4.7 percent, Pacific Island 3.6 percent, China and UK each contribute 3.0 percent.
- Fiji’s tourism sector is recognized as one of the most significant service sector in terms of size and value in Fiji’s international trade as well as a critical pillar to the economy. In 2014 and 2015, earnings from tourism reached a value of US$676 million and US$751 million (F$1.4 billion and F$1.5 billion), an increase of 11% on the previous year. According to estimates, tourism accounted for 17% to the country’s GDP. The sector also contributes close to one third of Fiji’s total labor force.
- In terms of total contribution, holiday travelers generated the largest share of tourism earnings. In 2015, it contributed around 81% of the total, while business and conference visits, and visits to friends and relatives each accounted for approximately 5.4 and 6 percent respectively.
- The hospitality industry is primarily driven by private businesses, which have significantly grown over the past years. There are several tourism projects being undertaken some of which include water sports & resort activities, yachting, surfing, diving, wedding & honeymoon, shopping, sports and community village tours.
Here is a list of enticing, lucrative investment opportunities in Fiji’s tourism sector:
- Agro Tourism
- Spa Tourism
- Health Tourism
- Sport Tourism
- Nautical Tourism
- Retirement Resort Village
- Integrated Resort
- Resorts & Villas
The Fiji Government has developed the Short Life Investment Package (SLIP) for hotels, retirement facilities, hospital resorts, and newly built short-term apartments (6 months’ maximum stay), which offer:
- A 10-year tax holiday on investments with a minimum value of F$7 million; and
- Duty exemption on all capital goods
Applicable to the building of a new hotel including renovations or refurbishments or extensions of existing hotel and International Retiree Facilities, Fiji provides investors with several tourism incentives, some of which include:
- A standard investment allowance of 25% of total capital expenditure as a deduction, provided there is no shift of tax revenue to other countries.
- Duty concessions
There is no doubt that tourism is a powerful bedrock of the Fijian economy, and that the country is a prime destination to establish a successful tourism business. Fiji’s regular ferries to the islands, international airport routes, and outstanding level of hospitality service make Fiji’s tourism infrastructure ideal for hotel and resort development.