Fiji Economy & Tourism Sector Outlook

PRESENTATION OUTLINE Domestic Economy Outlook

GDP Trading Partners Exchange Rate Inflation Current Account Foreign Reserves Outstanding Bank Lending and Deposits Sectoral Contribution to Growth

Future Investment and Growth Ease of doing business Impedance to Investment Tourism Industry Statistic’s on Visitor Arrivals, Development plans & Projects in progress Summary of recent investment expericen Way Forward

Domestic growth erratic over the yearsGDP outlook is looking more promising

TRADING PARTNERS’ OUTLOOK Source: IMF World Economic Outlook –

April 2011 Positive Outturn in Trading Partner Countries - Despite Natural Disasters still Positives for Fiji

in Trade, Tourism

Inflation is a concern but expected to ease

Trade & Current account deficits improved

Foreign reserves comfortable

But Private Sector activity is weak

EASE OF DOING BUSINESS

Ease of Doing Business

2011 rank 2010 rank Change in rank

Singapore 1 1 -

New Zealand 3 3 -

United States 5 5 -

Australia 10 10 -

Samoa 61 67 6

Fiji 62 61 -1

Tonga 71 66 -5

China 79 78 -1

Kiribati 93 91 -2

Papua New Guinea 103 108 3

India 134 135 1

Total Number of Countries – 183 Source: Doing Business 2011, The World Bank

EASE OF DOING BUSINESS IN FIJITop quartile for getting credit and protecting investors!

Ease of... 2011 rank 2010 rank Change in rank

Doing Business 62 61 -1

Starting a Business 104 107 3

Dealing with Construction Permits

58 58 -

Employing Workers 31 -

Registering Property 50 44 -6

Getting Credit 46 44 -2

Protecting Investors 44 41 -3

Paying Taxes 77 76 -1

Trading Across Borders 103 108 5

Enforcing Contracts 63 65 2

Closing a Business

IMPEDIMENTS TO INVESTMENT Major Impediments found: in no

particular order of priority Government policy uncertainty Red tape and bureaucracy General economic climate Finding skilled labour Political situation Law and order issues Lack of infrastructure High Utility costs (eg. water and electricity) Land tenure instability

FUTURE INVESTMENT AND GROWTH IN GROWTH IN TOURISM

Bibliography Fiji GDP 2010 (FIBOS)

Questions?

Fiji Economic Outlook

Geography Population GDP Key Figures- Economic, Financial, BOP, Social Welfare, Import/Export Indicators- GNI/Capita, Purchasing Power parity, Gender Indication,

MDG, Economic Freedom Index, Diff. Between GDP & GNI Infrastructure- Transport, Power generation & distribution, water &

sanitation, Telephone & ICT Public Finance Money & Credit Labour Productivity & Cost Income Distribution Investment Savings Banking Performance Foreign Trade Performance Price & CPI/ Tax