Approximately 2,200 hotels rooms to be completed by 2028
We believe Fiji can double its peak season arrivals over the next 10 years to 1.2 million visitors by 2033 without compromising on its charm Kishti Sen ANZ Bank International Economist
Fiji is bringing more hotel and resort accommodation on stream over the next four years to meet growing inbound tourism demand and to remain cost competitive.
A recent research carried out by the ANZ Bank International Economist, Kishti Sen revealed that Fiji needs more hotel room supply to meet forecast visitor demand.
In the research, Mr Sen specified that approximately 2,200 rooms are expected to be completed by 2028.
“We don’t think that will be sufficient to meet Fiji’s sustainable peak season demand of 1.2 million visitors, a target that Fiji can reach by 2033,” Mr Sen said.
“We estimate Fiji needs another 4,500 rooms over the next 10 years to accommodate expected visitor demand and reduce the deficiency of stock,” he said
According to Mr Sen, Fiji was ‘house-full’ during its peak tourism months last year.
ANZ industry consultations revealed hotels and resorts in the tourism hotspots of Denarau island and along the Coral Coast were hitting occupancy rates near 90 per cent during each peak season month of 2023. To accommodate more peak season arrivals, Mr Sen said Fiji needs to add more rooms to its most popular destinations along the western corridor of Viti Levu and in Vanua Levu and/or lift occupancy in the offshore islands and hinterland from the current rate of about 40–45 per cent.
“Fiji promotes itself as a 4.5-star holiday destination with a reputation for natural beauty, warm hospitality, rich cultural experiences, friendly locals and a brand that appeals especially to families.
“We believe Fiji can double its peak season arrivals over the next 10 years to 1.2 million visitors by 2033 without compromising on its charm,” he said. If Fiji was to aim for 1.2 million peak season visitors by 2033, then:
■after adjusting for room density (three persons per room), and
■average length of stay (7.2 nights), the
■tota● nights needed over the peak seasons is 2,760,000.
■This equates to 15,333 total rooms needed for each day of the peak season month (2,760,000/180 days, 180 = 6 months x 30 days per month).
Most of the surplus rooms are away from the major tourist centres and would require significant refurbishment and investment in supporting infrastructure like airports, ports, jetties and utilities to bring the rooms online. “That said, we have assumed that the 60 per cent national average occupancy rate of 2023 will pick up over the next 10 years and reach 80 per cent in 2033 in response to growing demand.
“That brings 8,000 rooms online from existing stock leaving a supply gap of 7,333 rooms in 2033.
“To remain cost-competitive and to create additional capacity, Fiji is bringing more rooms online over the next four years,” he said.
From available information, the research estimated another 2,208 rooms are likely to be added to room inventory over the next four years.
“A higher figure of about 4,300 is often mentioned but the research has excluded approximately 2,000 rooms where details are unconfirmed from its analysis.
“It is unlikely that Fiji will sit on its hands and not build any more rooms at the back end of this decade.
“We have conservatively assumed another 620 rooms will be added over 2029–33.
“If Fiji wants to aim for 1.2 million peak season visitors by 2033, then new hotel completions will be insufficient to close the supply gap, leading to a deficiency of room stock that we estimate will peak at 4,505 rooms in 2033,” he said.