Local ownership in major hotels

THERE is an increase in the localisation of tourism investment, which in part, is due to institutional investors such as the Fiji National Provident Fund (FNPF).

Out of the 25 hotels with a room inventory exceeding 100, 15 have some level of local ownership.

This was conclusion made by Fiji's tourism sector stakeholders during a baseline assessment of Fiji's tourism industry for the Ministry of Tourism and Civil Aviation's 10-year National Sustainable Tourism Framework (NSTF).

"Between 2007 to 2021, 601 tourism projects were registered with Investment Fiji, with proposed investment of $1.6 billion.

Fewer (262) projects were realised over this period, but the level of actual investment, $1.6b or $120 million on average annually, still matched that proposed from registered projects.

These 262 projects created more than 3000 jobs," the assessment report stated. "As these figures only include foreign direct investment, domestic investment would need to be added to paint a more realistic picture of trends in tourism investment over time.

The TLTB (iTaukei Land Trust Board) currently administers 281 tourism leases and licences, of which 258 are active leases. A total of six lease application cases are in process.

Most tourism leases are within the West of Viti Levu and offshore islands.

"Only 15 (tourism) leases are on Vanua Levu. There is increasing interest from land owning units (LOUs) in equity and joint ventures as part of tourism investments.

"Some LOUs are completing their own valuations to be in stronger negotiating positions as part of lease agreements."

The assessment concluded that only a few tourism investments are joint ventures or LOU owned.