A Tourism demand Model for Fiji

Abstract

Despite the growing importance of the tourism industry, little is known about the determinants of tourism demand in Fiji. The major findings of analyses of the 1970-2000 period are that growth in income in Fiji's main source countries for tourists leads to an increase in visitor arrivals, while relative prices and substitute prices negatively impact visitor arrivals in the long run. This implies that Fiji needs to maintain price competitiveness. Empirical evidence was also found that coups impede the short-run growth of the industry.