Multiplier effect huge to economy
The ‘Multiplier Effect’ more than doubles the economic benefit of tourism in the country and many Fijians, including those in the tourism industry realise this.
Speaking at the ANZ Fiji Excellence in Tourism Awards at the Sofitel Fiji Resort and Spa on Saturday night, FETA Chairman Bill Whiting said the true benefits tourism brought to the economy shows in the huge contribution of 45 percent to Fiji’s Gross Domestic Product (GDP).
“Of course we well appreciate the benefits for those employed directly and indirectly in tourism, as well as the companies and individuals who supply goods and services, to tourism entities.
“But do you know, direct and indirectly tourism contributes less than half of tourism’s 40 per cent plus contribution to Fiji’s GDP. “More than half is generated in other areas of the economy. This is because of something magical called the Multiplier Effect where the dollars which are generated by tourism, spin several times through our economy.
“Each time those dollars are spent, they create jobs and economic activity and each time these dollars are spent, guess what - they attract taxes, and duties and levies and numerous government related charges.
“The little understood multiplier effect more than doubles the economic benefit of tourism to Fiji.” Mr Whiting said Fiji’s tourism earnings in 2018 when announced was expected to exceed $2 billion for the first time.
“That is huge. Tourism supports government programme, roads, infrastructure, education, health, etc.
“Our national airline Fiji Airways would be less than half its size if it wasn’t for tourism.
“Fiji Airports would be a much smaller operation.
“Thanks to the multiplier effect every single person in Fiji, dare I say, from the Prime Minster down, benefits in some way from tourism.
“I believe it is why ANZ, the largest and best bank in Fiji, supports our tourism industry in many ways and in particular through their naming rights sponsorship of the ANZ Fiji Excellence in Tourism Awards.
“It is a real partnership, with ANZ supporting our media communications and event planning with Saud (Saud Minam, Country Head for ANZ) advising us and Nathan Wilson sitting on our organising committee.