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The launch of new direct flight services to Fiji by Continental Micronesia and V Australia will certainly grow the market, says Fiji Islands Hotel and Tourism Association president Dixon Seeto.
In an interview with FijiLive, Seeto said that while “we may not able to quantify this now, I am certain the new services will grow the market”.
V Australia’s first flight, direct from Sydney, touched down at the Nadi International Airport Friday followed by Continental Micronesia, direct from Guam and Honolulu.
Continental Micronesia, which will operate the new service using Boeing 737-800 aircraft, will also offer connections from Japan and the United States mainland to Nadi.
“It is imperative that they also grow the market to make their services viable otherwise the services may not give a return that the company expects.
“But for them to come I’m certain they have done their homework and this means increased business and visitor arrivals to Fiji,” Seeto said.
He said there needs to be an increase in arrivals because Fiji has a lot of spare inventory in our hotels.
According to Seeto, in the last two years alone, there was a 25 per cent increase in hotel beds and these need to be filled.
“At the moment, occupancy rates on average Fiji-wide can be improved, so if we can match spare room inventory with air capacity, we can increase visitor arrivals,” Seeto said.
He said once visitor arrivals increase, occupancy rates will rise meaning better employment opportunities, more foreign exchange earned and in turn address our balance of payments.
“All in all, the new services have a very important contribution and impact on the tourism industry and the Fiji economy,” Seeto said.
He said in the long term, if all these factors work well and the trend continues, it becomes a good indicator for continued investment.
V Australia is part of the Virgin Blue Airline Group. Sister airline Pacific Blue commenced services to Nadi in September 2004.
Competition on the Fiji-Australia route is expected to heat up further when Qantas subsidiary Jetstar begins daily services between Nadi and Sydney from March.
