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Tourist Arrival Analysis

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Submitted By alvinps
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Managerial Report

Visitor Arrivals in Fiji

Prepared by:

|Roshan Singh / S9902083 |GROUP 8 |
|Salveendra Singh / S11011093 |MBA 435 QBA |
|Alvin P Sharma / S97001213 |Lecturer : Dr. S. Ahmed |
|Abdul Ali / S11079449 | |

MANAGEMENT REPORT

Topic: Visitor Arrivals in Fiji – Analysis for years 2000 to 2010

Executive Summary:

The purpose of this report is to present the facts of Visitor arrivals in Fiji, through the use of facts, figures, graphically analyse and interpret results and provide a summary of trends, conclusions and justified recommendations after the 2007 – 2016 review of the Fiji Tourism Development Plan.

Introduction:

Tourism is Fiji's fastest growing industry in terms of employment creation and foreign exchange earnings. The industry provides employment directly to an estimated 85,000 people. The tourism industry is mainly private sector driven and contributes approximately 25% to the GDP. The sector is private sector driven and has grown substantially over the past few years. The 2007-2016 Fiji Tourism Development Plan provides a framework for the sustainable growth of tourism in Fiji. It is a working document/plan for Fiji’s government, industry and community.

Growth is becoming more broad-based with benefits trickling down to the grassroots level with expanding eco-tourism and tourism related activities.

While it has always been understood that tourism refers to “foreigners travelling to Fiji for holiday”, little do people know that together with these holiday searchers, also comes people with varied reasons like visiting friends and relatives, returning residents, business people coming into Fiji for meetings, conference or for trade, students travelling to Fiji for education and training, transiting, or even at some cases, medical and other reasons.

Background:

The Report intends to show using graphical analysis of the visitor arrival numbers in Fiji and their length of stay with brief detail on their purpose of stay, as sourced from arrival and departure card collected by Fiji Immigration Service. These data is then thoroughly analysed and examines the relationship between two the duration of stay and their purpose of visit.

The analysis takes into consideration data from as far back as 2000 and compare them through out to 2010. Year 2010 data was then utilised to examine the visitor arrival purposes.

The information for the analysis is gathered from Fiji Bureau of Statistics, Fiji Visitors Bureau, Worldwide Web, and other journals as referenced in the appendix. The analysis is attached to this report from which the recommendations were drawn.

|VISITOR ARRIVALS IN FIJI FROM YEARS 2000 to 2010 |
|Year |Australia |New Zealand |U.S.A. |Canada |
|Month |Business |Official |Holiday |
|Jan |12.9 |91 |103.9 |
|Feb |8.8 |26.9 |35.7 |
|Mar |8.2 |20.9 |29.1 |
|Apr |9.6 |25.8 |35.4 |
|May |8.2 |17.5 |25.7 |
|Jun |10 |31.7 |41.7 |
|Jul |8.2 |21.5 |29.7 |
|Aug |7.2 |24.6 |31.8 |
|Sep |9 |17.5 |26.5 |
|Oct |9.3 |23 |32.3 |
|Nov |10.9 |21.2 |32.1 |
|Dec |11.6 |81 |92.6 |

|Length of Stay in |Freq |Cum Freq |Ratio Freq |% Freq |% Cum Freq |
|Days | | | | | |
|0 to 15 |0 |0 | |0% |0% |
| | | |- | | |
|32 to 47 |6 |10 | |50% |83% |
| | | |0.50 | | |
|64 to 79 |0 |10 | |0% |83% |
| | | |- | | |

96 to 111 |1 |12 | 0.08 |8% |100% | |

[pic]
Graph 6.1

The histogram above shows a Skewed shape indicating that more visitors travelling to Fiji for business and conference or training stay for around 13 to 47 days with few visitors opting for a longer period between 80 to 111 days.

Average Visitor Spending

A recent survey was carried out by VISA Inc, a leading credit card provide based in USA, measuring average spending by people from different countries. This survey was based on consumer spending using their credit card facility and has proved a strong indicator of peoples spending on holidays. From the data available, we have drawn out the following graph.

[pic] Graph 6.2

The above graph clearly shows that while we attempt to attract people from various countries, Australian happens to be one the biggest spenders on holidays after Saudi Arabia. Using the data provided by the companies like VISA Inc, American Express, and other credit providers, Fiji Visitor Bureau can re align their strategies and direct their marketing campaign to attract visitors from high spending countries. This will not only generate additional revenue but will also boost the Fijian Economy.

Recommendations:

This report has analysed the visitor arrivals in Fiji and have scrutinised the marketing campaign by the Fiji Visitors Bureau to ascertain the actual figures on number of visitors coming to Fiji and for what reason and from which countries.

We strongly recommend that the: ▪ Research the position of Fiji in Australia and New Zealand by demographic lifestyle groups ▪ Review branding and marketing initiatives ▪ Identifying new emerging markets ▪ Markets segmentation which match product offering and create more brand awareness ▪ Analyse competiveness of service (Pacific Island Countries) ▪ Encourage local participation in tourism ▪ Collaborate with Key stakeholders ▪ Readily available data on wide range of information relevant to Tourism Fiji should be readily available online and in a real-time, user-friendly format.

The above recommendations have taken into account:

▪ The following should be considered while developing the new FTDP: ▪ VAT increased from 12.5% to 15% in Jan 2011 ▪ Departure tax increased from $40 to $100 ▪ Introduction of tourist refund scheme ▪ 20% devaluation of Fijian dollar in 2009 ▪ Increase in Hotel Turnover Tax from 3% to 5% in 2008 ▪ Short, medium and long term strategies

CONCLUSION

The 2011 Fiji National budget announced review of Fiji Tourism Development Plan 2007-2016.

The revised strategies in FTDP will: ▪ Increase foreign reserves ▪ Contributions at National level reducing government budget deficit ▪ promote economic growth and growth of other sectors ▪ Increase linkages and retention of tourism dollar ▪ Better services and improved infrastructure ▪ Create more employment and better standard of living

Bibliography:

1. http://www.news.com.au/travel/news/australians-the-worlds-biggest-spenders-on-holidays/story-e6frfq80-1226147518648#ixzz1n98wgTlv 2. http://www.pacific-travel-guides.com/fiji-islands/tourist-information.html 3. http://en.wikipedia.org/wiki/Fiji 4. http://www.fijime.com/index.php/fiji_docs 5. http://www.statsfiji.gov.fj/Key%20Stats/Tourism%20&%20Migration/10.7Visitor%20arrv%20by%20cntry%20of%20res.pdf 6. Global VISA Travel Intention Survey, 2011. 7. Fiji Tourism Development Plan - (2007-2016) 8. Fiji Tourism Development Plan (1998-2005) 9. http://www.statsfiji.gov.fj/ 10. http://www.south-pacific.travel/

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