Investment prospect for 2024 and beyond
United Nations Conference on Trade and Development (UNCTAD) states the Global foreign direct investment (FDI) flows in 2023, at an estimated $1.37trillion, showed a marginal increase (+3 per cent) over 2022, defying expectations as recession fears early in the year receded and financial markets performed well. However, economic uncertainty and higher interest rates did affect global investment.
The UNCTAD’s Investment Trends Monitor, reported January edition, looking ahead, a modest increase in FDI flows in 2024 appears possible, as projections for inflation and borrowing costs in major markets indicate a stabilisation of financing conditions for international investment deals. However, significant risks persist, including geopolitical risks, high debt levels accumulated in many countries, and concerns about further global economic fracturing. Economic activity domestically has been healthy despite persistent headwinds, underpinned mainly by the thriving tourism sector, strong remittances, and resilient domestic demand. The Reserve Bank of Fiji’s December Economic Review stated these drivers offset the drag from slower economic growth in major trading partner economies, elevated price pressures, and softer performance in the primary and natural resource sectors. Partial indicators for investment activity have shown signs of recovery but at a gradual pace. Commercial banks’ new lending for investment purposes rose annually by 29.6 per cent cumulative to November, driven mainly by higher lending to the private individuals, building and construction, and real estate categories. The value of work put-in-place also picked up (7.8 per cent) into the third quarter. Leading indicators for construction activity, such as the number of building permits issued, also improved by 17.1 per cent cumulative to the third quarter.
Inn property. The 179-room property is a testament to the growing interest and confidence that investors place in the potential of Fiji’s tourism sector.
Noteworthy, too, is the ongoing redevelopment of the 5-star Wananavu Beach Resort, which will diversify into high-quality accommodations.
Numerous other projects underway are The Paramount Hotel in Nadi, Namena Island Resort renovation, development in Namuka Bay, luxury property in Yasawa, Palm Beach development, Radisson Mirage in Naisoso, and Ding Jing Real Estate Development’s construction of 90 rooms at Wyndham Garden in Nadi.
Bati Investment Group has invested in the tourism and hospitality sector through the construction of The Remote Resort on Taveuni which is in its initial stages and will feature 23 rooms. At the same time, Belovula Resort is also under construction on Bekana Island.
Additionally, a notable project by Silent Resorts on Qamea involves the development of a solar-powered, zero-carbon resort with various modern concepts of accommodation villas. This innovative initiative aligns with sustainability goals and showcases Fiji as a destination committed to eco-friendly tourism.
Among the recently announced projects is the extension of the Sofitel Hotel & Spa in Nadi, which will add 190 luxurious rooms to the hospitality offering.
These new additions will not only contribute to the economic development of Fiji but also enhance our reputation as a premier tourist destination, providing world-class accommodations and experiences.
Cathay Hotel is also adding 80 rooms to Fiji’s inventory which is set to assist and accommodate the increasing influx of visitor arrivals.
Another upcoming venture is by the Dong Cheng Company Investments Pte Ltd, in collaboration with its sister company Nalagi Hotels which is set to embark on a groundbreaking project that will bring forth 225 residential apartments in Suva.
These tourism projects signify confidence from investors, demonstrating their belief in the potential and long-term sustainability of Fiji’s tourism industry. These developments will also create numerous employment opportunities, stimulate local businesses, and further strengthen the bonds between Fiji and the global tourism community.
The projects currently in progress or on the verge of commencing construction will contribute to adding more room to the existing inventory.
The anticipated completion for these projects is expected to fall within the timeframe of 2024 to 2026.
Investment Fiji and Tourism Fiji are strategically working along with prominent global brands in the tourism sector such as Hyatt, Oberoi Hotels, Dusit Thani Group, Dorsett from Hong Kong, Pan Pacific from Singapore, So, Aman Resorts from the Middle East, La Falle Des Couleurs from Mauritius, and One & Only Resorts. Such internationally renowned brands will showcase Fiji as an exceptional tourism destination.
Investment in the Northern Division
Vanua Levu has emerged as a key player in fostering economic development, with a series of notable projects that showcase the region’s immense potential. One standout venture is the ongoing development of the multi-million-dollar Nawi Island Marina project in Savusavu, a testament to the growing confidence in the Northern Division as an investment destination.
The private sector, recognising the untapped opportunities, has been instrumental in driving positive change. Damodar Group is contributing significantly to the economic landscape with a substantial multi-million-dollar project.
This project includes the development of commercial complexes, cinemas, and hotel rooms, adding not just infrastructure, but also enhancing the region’s capacity to cater to diverse economic activities.
The Grand Eastern Hotel is also under refurbishment which upon completion will have an additional 25 rooms.