Tourism low, spending restrained: RBF

October 14, 2009 03:35:06 PM

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Fiji’s tourism industry performed well below last year’s levels in the first half of 2009 while spending is being restrained by weak employment conditions, according to the Reserve Bank of Fiji (RBF).

In its economic review for the month of September, the RBF said there were signs of a strong pick-up in visitor arrivals from July, particularly from Fiji’s larger source markets, Australia and New Zealand.

New and increased airline services, some of which are scheduled to start towards the end of the year, should also augur well for the industry in 2010 and beyond.

The central bank said consumption remained subdued during the review period. Without divulging any figures, the RBF said net Value Added Tax (VAT) collections fell in August while imports of consumption goods declined cumulative to July.

“Spending is being restrained by weak employment conditions, evident by lower new taxpayer registrations and fewer job vacancies. However a strong growth of 34 percent in remittances in July may support consumption activity in the coming months,” the RBF said.

Partial indicators for investment were mixed during the review period. While new investment credit fell in the first seven months of the year, imports of investment goods rose by 4.2 percent in the same period.

Commercial banks’ lending grew by 5.5 percent on an annual basis in August. Liquidity in the banking system rose to around $328 million.

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