The Fiji hotel and resort market has seen a very positive recovery post pandemic, largely on the back of a faster than expected return of international demand and strong daily rate levels across the board says JLL Hotels and Hospitality Group.

Fiji comprises an archipelago of more than 332 islands of which 110 are permanently inhabited, scattered across 200,000 square kilometres of the South Pacific Ocean, and located east of Australia and north of New Zealand. The two major islands, Viti Levu and Vanua Levu, accommodate approximately 87% of Fiji’s total population, with the capital city Suva located on the southern coastline, and Nadi, the main tourism gateway to Fiji, situated on western coastline.

The country benefits from being a popular short-haul tourist destination, with strong appetite particularly from Australian and New Zealand visitors. Despite being a developing country, Fiji has seen significant infrastructure investment and new development over many years (with a world-class airport, improving road networks, clean water, etc.).

Fiji is also known for being a family friendly holiday destination, with strong welcoming culture, pristine natural environment and tropical warm climate. The market is also renowned for its market leading, genuine hospitality, with guests becoming friends with the local staff, and many resorts having loyal repeat guests that can span generations.

Despite global economic headwinds and increased uncertainty, Fiji’s hotel and resort market has seen a very positive recovery post-pandemic. Largely on the back of a faster than expected return of international demand and strong daily rate levels across the board. Shifting debt markets and an increase in volatility is likely to temper investment activity in the short-term, however the strong market recovery is expected to drive investor appetite and future market growth, especially given Fiji’s strong tax advantages that stimulate hotel investment and fuel future hotel development.

JLL expect the following key themes will shape the Fiji market in the coming years:

1. Owners and investors need to invest in and enhance their product, through refurbishment, rebranding or redevelopment, upgrading the product offering, sustainability performance and efficiencies.
2. There is a potential for further international brand diversification, especially with a targeted focus on underweighted product segments such as luxury/ultra-luxury, boutique, or lifestyle brands.
3. The market has significant potential for ADR uplift and a continued increase of the rate ceiling, given positive demand levels, strong forward bookings and an expansion of Fiji’s international airline route maps as airlift continues to recover to pre-pandemic levels.
4. Attractive tax concessions and incentives are on offer in the market that are directly targeted at stimulating new investment, construction and refurbishment within the tourism and hotel industries.

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