Cash boosts tourism

THE tourism industry continues to recover with support received from the Government through improved funding.

Speaking at a media workshop on Saturday, General Manager of Sonaisali Resort and vice-president of Fiji Islands Hotel and Tourism Association (FIHTA) Aaron McGrath said the industry has not recovered since 2009.

"Some hotels in the country are on 40 to 50 per cent discount since then," he said.

"At the same time we were affected with the global financial crisis and having to compete with falling tourism package holiday pricing internally."

He said even with 40 per cent to 50 per cent discounts, hotels have not been able to recover occupancy to previous figures.

The president of FIHTA, Dixon Seeto, said some hotels have extended the discount until March next year. Mr McGrath said diminished occupancies on reduced yield led to severely reduced or no profits. He said running hotels had been very difficult.

"It is not just domestic events, it's international events that impacted the occupancy levels," he said. He said it had been very difficult to compete on the international market with the effects of devaluation creating an increase in costs for many members.

Mr McGrath said there had been seriously reduced spending within the local economy as a result of reduced visitors.

He said with the cost of operation for hotels even higher, the revenue generated per guest coming was quite low.

"At the end of the day there has certainly been focus to improve productivity in the resorts," he said.