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‘Where happiness comes naturally’: Fiji tourism’s dream run

1 Sep 2026 by

Fiji’s key sector is still breaking records, despite short- and long-term challenges.

Fiji benefited from being seen as a safe destination far from the conflict in the Middle East, with tourism numbers remaining strong in spite of the global fuel crisis. Credit: Tourism Fiji

Fiji’s tourism industry has had a dream run post-COVID which, at the time of writing in mid-2026, is continuing, despite the fuel price shock earlier in the year and related global instability.

Fantasha Lockington, CEO, Fiji Hotel and Tourism Association. Credit: FHTA

“We have had four stellar years, from 2022 to 2025, with record visitor numbers year after year,” says Maikash Ali, Head of Corporate & Institutional Banking (Fiji & Pacific Islands) at Bank South Pacific (BSP).

The records were still tumbling three months into 2026, when the Middle East conflict broke out and threatened to upend the global tourism industry. However, even skyrocketing fuel price and uncertain global outlook could not initially stall Fiji’s momentum – quite the opposite, as Fiji benefited from being seen as a safe destination far from the conflict:

“When the fuel crisis happened, we wondered if there would be cancellations,” says Fantasha Lockington, CEO of the Fiji Hotel and Tourism Association (FHTA). “In fact, what we saw was an increase in interest, showing people [from main markets of Australia and New Zealand] opting for short-haul flights rather than long-haul.”

Nonetheless, the economic hit from the crisis is expected to impact demand from those key source markets, where around 70 per cent of Fiji’s international visitors originate, as their own economies soften. Moreover, the sudden steep rise in the oil price has put huge pressure on airlines, obliging Fiji Airways to temporarily cut some international services (see box). The Reserve Bank of Fiji announced in June that visitor arrivals were therefore expected to “grow at a slower pace than previously anticipated.”

All the same, by late June fuel prices had dropped to their pre-crisis levels and the medium- to long-term outlook for the sector remains very positive.

Scenic aerial view of Likuliku Lagoon Resort looking out over the island bar and overwater bures. Credit: Tourism Fiji

New properties, new connections

Unsurprisingly, the high demand of recent years has led to a flurry of investment in new properties, many of which are due to come on stream in the next year or two. Several of these, most notably the Vatu Talei property on Denarau, will not just add much-needed room inventory but will also diversify and enhance Fiji’s accommodation offering.

In 2025, Fiji’s award-winning national carrier, Fiji Airways, became a full member of the Oneworld Alliance and a full partner of the American Airlines AAdvantage rewards program. As CEO Paul Scurrah explains in his interview on page 26, this is increasing Fiji’s appeal beyond its traditional markets and making it easier to reach.

Perhaps the biggest longer-term challenge to the industry is infrastructure, as increased visitor arrivals inevitably put pressure on ageing infrastructure:

“We’ve outgrown the airport, we’ve outgrown the roads,” says Fantasha Lockington of the FHTA. “They are expanding the airport but that doesn’t make sense if you don’t redesign the roads as well. Then there’s power and water: the [recent] fuel challenge has brought home that we should have done more in renewable energy.’

Infrastructure is also the key to opening up more of Fiji’s 14 provinces to tourism (the vast majority of the industry is currently concentrated in just three). The ongoing Fiji Tourism Development Program, known locally as the Na Vualiku Project (navualiku.com), is a good start. Financed by the World Bank, this flagship Fiji Government project aims to support sustainable tourism development on the islands of Vanua Levu and Taveuni. A total of F$400 million is due to be invested in three stages over the next decade.

This article appears in the 2026/27 edition of Business Advantage Fiji published in August 2026. Read the full edition here