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FIJI Post-Disaster Needs Assessment Businesses are estimated to have lost F$44 million through cancellations and future bookings. Losses due to additional operating costs appear to have been minimal, within the range of F$4 million. TC Winston will reduce visitor numbers by an estimated 3,700, or 0.5 percent, of annual arrivals during 2016, with the majority of the impact in the second quarter of the year. Given that TC Winston had a limited impact on the national tourism sector, recovery needs are relatively modest. The properties that constitute the majority of damage and losses are believed to be well insured. Based on initial insurance industry estimates and industry self-reporting, between F$12 million and F$29 million in damage and losses are uninsured. Accessing appropriate and affordable insurance products for smaller operators needs to be addressed. A smaller, but nevertheless important, need is to continue the positive messaging regarding Fiji being open for business in 2016. Tourism Sector Background Tourism has become a cornerstone of Fiji’s socioeconomic development over the past two decades. The sector consists of over 400 hotels, resorts and backpacker accommodations, located mainly around the Western Division islands of Savusavu, Taveuni, Mamanucas and Yasawas. 62 Direct tourism earnings as a percent of nominal GDP was an average of 17.6 percent between 2011 (F$1.28 million) and 2015 63 (F$1.56 billion). Earnings fluctuate throughout the year depending on seasonality of tourist arrivals. The first quarter of the year is the trough season, while the third quarter of the year is the peak season (see Figure 20). Visitor arrivals increased from 675,050 in 2011 to an estimated all-time high of 754,835 in 2015. Australia, New Zealand and the United States are the three major source markets comprising 48.7 percent, 18.4 percent and 9 percent of total visitor arrivals, respectively, as of 2015. Other markets consisting of mainly China, continental Europe and Canada make up the remaining 23.9 percent. 500.0 400.0 F$ million 300.0 200.0 100.0 0.0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2012 2013(p) Quarterly 2014(p) 2015(p) Figure 20: Quarterly Tourism Earnings 2012–2015 Source: Estimations by Assessment Team Sector growth declined in 2012 and 2013 due to the effects of severe flooding in January 2012 and TC Evan in December 2012, resulting in declining visitor arrivals and relatively stagnant earnings. However, due to swift measures implemented by government and industry stakeholders, record growth was experienced in 2014 and 2015. Tourism Earnings (F$ million) 2,000.0 800 1,500.0 750 1,000.0 700 500.0 650 0.0 2011 2012 2013 2014 2015 (e) 600 Visitor Arrivals (thousands) Figure 21: Tourism Visitor Arrivals and Earnings for 2011–2015 Source: Estimations by Assessment Team Tourism Earnings Visitor Arrival 62 Hotel Licensing Board Database. 63 FBOS – Tourism Statistics Year End Release. 58 Tropical Cyclone Winston, February 20, 2016
FIJI Post-Disaster Needs Assessment The number of rooms available increased from 10,211 in 2011 to 10,422 in 2015. Over the same period, average room occupancy has been 56.1 percent during the third quarter of the year (peak period). Moreover, visitors spent an average of 9.5 days in Fiji as of 2015, spending an estimated F$184.96 per day. As the sector experienced positive growth, direct tourism employment increased from 11,663 jobs in 2011 to 13,247 in 2015. 64 An estimated 77.7 percent of these jobs are full time employment while 22.3 percent are part time. Table 29 provides a snapshot of Fiji’s tourism sector at the end of 2015 by area. Nadi and the Coral Coast have the largest share in all parameters followed by the Mamanucas and Suva. Table 29: Baseline Tourism Data for 2015 Division Area Rooms Available Occupancy (%) Visitor Nights (%) Hotel Receipts (F$ million) Central Suva 1,591 56.1 9.1 $76.3 Western Nadi 3,513 58.7 35.0 $315.8 Lautoka 833 39.7 3.9 $46.3 Coral Coast 1,937 57.4 28.7 $218.2 Mamanucas 1,424 55.2 19.4 $220.0 Northern Northern Division 739 28.6 2.7 $63.1 Eastern Others 385 19.9 1.3 $17.0 Total 10,422 52.5 100 $956.7 Source: FBOS Quarterly Tables 1 to 11. Assessment of Disaster Effects on the Tourism Sector (F$120 million) TC Winston’s track avoided Fiji’s most popular and productive tourism regions, but did however cause extensive damage to the infrastructure, facilities and amenities of at least 75 tourism businesses. The majority of those affected are accommodation providers, with almost no impact reported by tour operators. Nadi, Suva and the Coral Coast, which received 72.8 percent of visitors in 2015 (see Table 29), were left relatively unscathed by TC Winston. In the immediate aftermath of TC Winston, the Tourism Action Group (TAG) 65 implemented a successful strategy based on lessons learned from previous cyclones. Having quickly established the viability of key locations and properties, the priority was to minimise negative reporting on TC Winston’s impact on Fiji’s (economically critical) tourism sector. International and regional media in core markets were kept updated through all available communication channels. In addition, Tourism Fiji provided messaging to consumers directly through social media. Flights were reinstated after only two days of cancelled services, and a clear ‘business as normal’ message was pushed out to core markets, reinforced by discounting some airfares and packages. Furthermore, the ability of the government and TAG to persuade the Australian Department of Trade and Foreign Affairs and the New Zealand Ministry of Foreign Affairs and Trade not to issue travel warnings greatly reduced cancellations both immediately after the event and with regards to future bookings. Damage to the Tourism Sector (F$76 million) Across the affected areas, businesses have reported damage to physical assets, equipment and furnishing, without reporting any significant damage to public tourism infrastructure. Most of the damage has been to exteriors, with interior damage resulting from the deterioration of buildings during the storm and consequent water damage that has resulted in the destruction of furnishings and equipment. Significant damage to foliage and landscaping, as well as to coral reefs in the Vatuira Passage, was also reported. The impact on coral reefs and diving sites used by the tourism industry are detailed and needs are addressed through the environment section of this PDNA. 64 Provisional Hotel and Tourist Accommodation Statistics - Quarterly Release, June 2nd Quarter, FBOS. 65 The Tourism Action Group is an initiative of partners in the tourism industry urgently activated in the aftermath of TC Winston to reassure and continue to encourage global travellers to come to Fiji. TAG has three key functional arms, including public relations, marketing and finance. Tropical Cyclone Winston, February 20, 2016 59
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Damage to Ovalau Resort Source: Min
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