FIJI. An emerging political crisis in Fiji, sparked by a breakdown in relations between the government and the military, is having a serious effect on tourism, travel and duty free in the country.
The government had sought the removal of a senior military commander early this month, but this was rejected by senior military figures, prompting a stand-off between the Army and national government.
Hotel occupancy rates, normally 80-90% at this time of year, have slumped to around 50% as tourists stay away. This has already resulted in a wave of lay-offs in the tourism sector.
“We are dealing with very uncertain times and it seems there is no early resolution in this matter“ |
Mahendra Patel, Chairman & CEO, The Motibhai Group of Companies |
Tourism chiefs are already forecasting the loss of millions of dollars in tourist income. Although the crisis is not on the scale of the 2000 coup, which devastated the tourist trade, it is deeply unsettling for the industry.
One of Fiji’s leading duty free retailers is the Motibhai Group of Companies, whose Chairman and CEO Mahendra Patel said: “The stand-off between the Army and the Government has resulted in travel advisories issued by many countries and this is affecting tourist arrivals and a global downturn in business.
“We are dealing with very uncertain times and it seems there is no early resolution in this matter. Because of this we are going to be in a very precarious position from the point of view of trading and maximizing our sales to tourists and locals.
But he added: “We are hopeful that a permanent solution will be found so that we can move forward with commitment, enthusiasm and vigour.”
