Travel & Tourism - Fiji

Fiji

In Fiji, the projected revenue for the Travel & Tourism market is US$14.24m by 2024.
It is expected that the revenue will grow annually at a rate of 6.18%, resulting in a projected market volume of US$18.10m by 2028.
The largest market of Fiji's Travel & Tourism market is the Hotels market, with a projected market volume of US$6.79m by 2024.
It is expected that the number of users in the Hotels will reach 112.40k users by 2028.
In 2024, the user penetration rate is 12.7%, which is expected to increase to 14.5% by 2028.
The average revenue per user (ARPU) is expected to be US$119.40.
By 2028, 70% of the total revenue in Fiji's Travel & Tourism market will be generated through online sales.
In global comparison, United States is expected to generate the most revenue, with US$199bn in 2024.
Fiji's Travel & Tourism market is heavily reliant on international visitors, with over 80% of arrivals coming from Australia and New Zealand.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Analyst Opinion

The Travel & Tourism market in Fiji is experiencing a significant growth trajectory, driven by a combination of unique customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Travelers in Fiji are increasingly seeking authentic and immersive experiences that allow them to connect with the local culture and environment. This shift in preferences has led to a rise in demand for sustainable and eco-friendly tourism activities, such as nature-based excursions, cultural village visits, and traditional ceremonies. Additionally, there is a growing interest in adventure tourism, including activities like snorkeling, diving, and zip-lining, catering to the adventurous spirit of modern travelers.

Trends in the market: One notable trend in the Fiji travel market is the increasing popularity of luxury and boutique accommodations. Travelers are willing to pay a premium for high-end resorts and private villas that offer personalized services, exclusive amenities, and stunning ocean views. This trend is in line with the global rise of luxury travel, where discerning customers prioritize comfort, privacy, and unique experiences. Furthermore, the expansion of digital platforms and online booking services has made it easier for tourists to research and book their travel arrangements, contributing to the overall growth of the tourism sector in Fiji.

Local special circumstances: Fiji's geographical location in the South Pacific Ocean, known for its pristine beaches, crystal-clear waters, and vibrant coral reefs, serves as a natural draw for tourists seeking tropical paradise. The warm hospitality of the Fijian people, coupled with their rich cultural heritage and traditional ceremonies like kava ceremonies and meke performances, create a unique and memorable experience for visitors. The country's diverse landscape, including lush rainforests, volcanic mountains, and cascading waterfalls, provides a picturesque backdrop for various outdoor activities and eco-tourism adventures.

Underlying macroeconomic factors: The steady economic growth in Fiji, supported by government initiatives to promote tourism as a key driver of the economy, has led to increased investment in infrastructure development, hospitality services, and transportation networks. The growing accessibility of direct flights to Fiji from key source markets, coupled with strategic marketing campaigns to attract international visitors, has further boosted the tourism industry. Additionally, favorable exchange rates and competitive pricing have made Fiji an attractive destination for budget-conscious travelers, contributing to the overall expansion of the Travel & Tourism market in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.