Pacific Tourism Essay

Question 1

Explain three tourist demands which are determinants to tourists travelling to Fiji. [3 Marks]

In terms of the major factors influencing the demand for tourism;

1. Income

As their income increases, people are more inclined to travel. As a proxy for foreign income, the weighted average real gross domestic product (GDP) of Fiji’s major trading partners is used.

2. Prices

Tourists are also sensitive to prices, either in the form of transportation costs (airfares), or cost of living (accommodation, meals etc.) at the destination country. Potential tourists may be deterred from taking a vacation in Fiji if our costs are relatively high – they may opt to pursue tourism options within their country.

The assumption here is that the prices of hotels and restaurants move in line with domestic prices. Therefore, if the domestic exchange rate was not maintained at a competitive level, potential tourists would be dissuaded to travel to Fiji.

3. Natural Disasters

Natural disasters could also deter potential tourists and given that Fiji has experienced a number of severe cyclones in the past, it can be said that this natural phenomenon also hinders the tourist demands travelling to Fiji.

Other determinants include;

Secure adequate airline capacity through the negotiation of new air service agreements and the

For instance, devaluation in other countries like Australia and New Zealand, the residents of these countries would find it expensive to spend it in Fiji as their dollar value would be less. Another factor could be political instability; is when there can be a coup or other forms of political unrest which would deter the tourists from arriving into Fiji as they would feel it is unsafe for them in an unstable environment. Here tourists would sense the omnipresence of proper laws and regulations which would make them have fears of personal