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Direct contribution

Monika Singh
Friday, February 23, 2018

TOURISM has been a huge driver of the economy in Fiji and this has been evident in its direct contribution to the gross domestic product.

Remarkable improvements in the performance of air transport is said to have provisionally driven the direct tourism value added for 2014 to $928 million with direct contribution of 13 per cent to GDP.

This was revealed by the Fiji Bureau of Statistics in its release on direct contribution of tourism to gross domestic product 2008 to 2014.

According to the bureau the direct contribution covers direct purchases of goods and services by visitors and the costs incurred by businesses to produce those goods and services.

In 2002 the direct tourism value added recorded was $402m with 11.2 per cent contribution to the GDP.

The direct tourism value added in 2008 increased to $614m and accounted for 13 per cent of the total GDP, representing an increase of 1.8 per cent compared with 2002.

According to the information provided by the bureau, the growth was largely driven by increases in international visitor arrivals leading to higher demand for output in industries such as accommodation and food services, land and air transport services and recreation.

In 2009 the tourism sector had a direct value added loss of $127m as a result of the effects of the global financial crisis however the recovery in 2010 resulted in a direct tourism value added of $570m which was a 11.3 per cent contribution to GDP.

Meanwhile there was consistent growth in the direct contribution to GDP over the period 2011 to 2013.

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