The Australia Fiji Business Council today welcomed the latest positive assessment of the Fiji economy by the Reserve Bank of Fiji.

Speaking in Brisbane following a meeting of the board of the Council, the President, Mr Bob Lyon, Managing Director for Pacific and Personal Banking Asia, ANZ Banking Group Limited, said there were very positive signs for continued growth in the Fiji economy.

The Reserve Bank anticipates record growth in 2004 led by the building and construction and wholesale and retail trade sectors. The Prime Minister, an experienced banker and economic manager, has set a target for growth of 8% in 2005.

Mr Lyon said too many people tried to talk down the positive economic developments in Fiji, and talk up political issues.

"Despite events of 1987 and 2000, Fiji has a long history of stable government, yet the media incorrectly portrays Fiji as being politically unstable."

Mr Lyon said that like in many countries, the media in Fiji thrive on gossip, rumour and intrigue, which are common occurrences in the political arena, however, Australian companies and individuals had continued to find Fiji a profitable place in which to make long term investments and do business.

Mr Lyon acknowledged that there are constitutional and legal issues which remain to be settled, but he said he was confident that they would be resolved without disruption to business and investment in Fiji.

"Although some investors had to ride out a tough period after May 2000 due to a decline in tourist arrivals, many companies found it an opportune time to make long term reinvestment decisions. Businesses with long term interests in Fiji have come through those difficulties in good shape", Mr Lyon said.

Fiji’s tourist industry recorded a record number of arrivals in 2003, and is expected to set another record in 2004.

Air Pacific, Fiji’s national airline, recently reported a record profit in 2003. Air Pacific has an aggressive expansion program over the next five years with new fare schedules and has recently announced it will establish a new Australian gateway with services between Canberra and Nadi commencing in July 2004.

The construction sector in Fiji is booming, with significant new developments having been commenced in tourism infrastructure and up to $2 billion in new projects under way or due to commence by the end of 2005.

"There is strong external investment in the tourism and high level residential sectors", Mr Lyon said.

"At Denarau Island near Nadi work has commenced on the new Novotel Hotel, the Hilton Villas have almost sold out although construction is only just getting under way, and up to $90 million in private residential construction is planned over the next three years in already sold-out residential subdivisions. Other developments well advanced in planning and about to commence include the Four Seasons resort at Natadola beach and plans for the new Marriott at Momi Bay."

Mr Lyon said employment growth is occurring in new economy industries such as film and television production, and there are new back office processing industries now established in Fiji and considerable scope for expansion. Fiji has world class communications facilities available to it through its direct access to the Southern Cross Cable which runs from the USA down to Australia and New Zealand.

Mr Lyon said the opportunities for investment in Fiji were now better than they had ever been, and urged potential investors in Fiji to look carefully at the confidence shown in the country’s future by existing long term investors.

BRISBANE

10 June 2004