New Report Highlights Potential in Vanua Levu for Tourism

​Suva, Fiji, November 6, 2020- Fiji's second largest island, Vanua Levu, could become a significant part of the nation's tourism recovery efforts through targeted investments to attract high-value markets, potentially increasing national tourism earnings by FJD 339 million in 2020, above government forecasted estimates.

IFC, with the support of the governments of Australia and New Zealand, has completed a study, Vanua Levu Tourism Market Demand Assessment, which provides critical information for the World Bank Group and the Fijian Government, to design a project that will support the island's future growth and recovery from the impacts of COVID-19.

The move follows work undertaken last year by the World Bank and the Fijian Government to explore opportunities to develop tourism in Vanua Levu through the Bank's International Development Association (IDA) lending program.

"We are all aware of the impact of COVID-19 on Fiji's tourism industry but the Fijian Government's commitment to the long-term vision of a more diversified and sustainable tourism sector remains unwavered," Fijian Minister of Commerce, Trade, Tourism and Transport, Hon. Faiyaz Koya said. "The development of tourism in Vanua Levu, which is largely untapped, is critical and core to this vision."

According to the study, Fiji's tourism recovery efforts should focus on high yielding markets such as those focused on nature and adventure, scuba diving and yachting, weddings and honeymoon; and expedition cruises.

The Fijian Government has estimated international arrivals in 2022 will fall to 70 percent of the 2019 levels due to the COVID-19 pandemic, yielding about FJD 2.12 billion in tourism earnings.  The new study by IFC estimates that investments geared toward these high yield tourism markets could increase earnings by FJD 339 million from estimated losses to FJD 2.46 billion, supporting recovery efforts.

"While it may be difficult to reliably forecast when international arrivals will return to Fiji at this stage, the Fijian Government has the ability to position itself for the future by focusing on high value and 'first to rebound' markets," Deva De Silva, IFC resident representative in Fiji, Kiribati, Tonga, Tuvalu and Samoa, said. "It is critical in Fiji's tourism recovery efforts that the investment conditions are right to attract the right investors to Vanua Levu to boost tourism and create jobs."

The study says the development of Vanua Levu as a key destination will require investment in a range of areas including adequate supporting infrastructure and services and improving investment conditions for the private sector. It also recommends developing the labor force for tourism, and advancing biodiversity and conservation.

Fiji Partnership  
IFC's work in Fiji is supported by the governments of Australia and New Zealand under the Fiji Partnership to unlock private sector investment, promote sustainable economic growth and boost shared prosperity in Fiji.

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

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