If you haven’t heard already, Fiji has had another military led coup, the third in a well trodden path of Military leaders disposing of the elected government. These coups have a crippling effect on Fijis tourist dependent economy.
The recent coup has resulted in many countries issuing travel advisories warning against non essential travel. These warning together with the political uncertainty has resulted in an immediate fall in tourist booking from Fijis two largest markets namely Australia and New Zealand.
Tourist wholesalers have had a rocky road in recent years rebuilding tourist confidence only to have it shattered once again by the repetition of military coups. These inbound tourism operators have however gained the expertise to rebuild tourist numbers learnt from previous coups.
Someone’s misfortune as another one gain aptly applies to Fiji travel deals on offer to Australian and New Zealanders wishing to ignore Government travel warnings. Holiday makers have flocked to purchase heavily discounted holiday packages for the large hotels of Nadi, Denerau Island and the Sunshine Coast region. Even smaller resorts located on the Mamanuca and Yusawa Island groups, have been discounted up to 60%.
The marketing of these discounted holiday packages have been relatively successful for the New Zealand and Australian market however sales to North American and Asian travellers have been less impressive. Resistance by these markets will have a flow on effect for tourism in both Australia and New Zealand. Fiji is often visited in combination to Australia and New Zealand.
As reported earlier, New Zealand inbound tourist numbers are at a record high. These tourist statistics were released for the year ending January 07 and would include only one month of possible Fiji coup effects. Further analysis of these figures show a large increase in Australian numbers and a decrease in Asian figures. I believe that New Zealand tourist operators will feel the negative effects of the Fijian coup in the coming months for two reasons.The gain in tourist numbers in the Jan 07 figures relies heavily on the Australian market. New Zealand as a destination for Australians is now competing with Fiji “loss leader†type marketing.
New Zealand accommodation providers still rely on the domestic market. Fiji price structure is now competing strongly with costs associated with holidaying within New Zealand. The cost of a 5 day holiday package from Auckland to Fiji is now less expensive than that offered to Queenstown.
I wait with anticipation for the next quarterly tourism statistics and will report here with reference to this predictive negative short term outlook.
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Tags: Fiji Travel, New Zealand Travel
[...] On February 2007 I wrote of the current coups potential crippling effect on Fijis tourist dependent economy. As previously anticipated, the likelihood of the nervy US market being effected long term has clearly been demonstrated by today’s Air NZ announcement. [...]