Fiji Islands :Fiji Islands Presentation by: D.RAJESH ROLL NO:07 FINANCE 2


Slide 2:Republic of Fiji Islands


OVERVIEW - FIJI :OVERVIEW - FIJI State in the South Pacific Region situated in the South Western Pacific Ocean Hub of the South Pacific Comprise of over 300 island, 109 islands are inhabited. Two main islands – Viti Levu & Vanua Levu Suva is the capital city , main seaport


Geography :Geography Area: 18,376 sq. km Coastline:1,129 km Climate: tropical marine; only slight seasonal temperature variation Terrain: mostly mountains of volcanic origin Natural resources: timber, fish, gold, copper, offshore oil potential, hydropower Land use: arable land: 10.95%  permanent crops: 4.65%  other: 84.4%


Demography :Demography Population: 837,271 Age structure: 0-14 years: 30.3% 15-64 years: 64.9% 65 years and over: 4.8% Population growth rate: 1.379% Ethnic groups: Fijian 57.3% , Indian 37.6%, other 5.1% Religions: Christian 53% ,Hindu 34, Muslim 7%, others 6%


Demography :Demography Languages: English (official), Fijian (official), Hindustani Literacy rate:  93.7% male: 95.5% female: 91.9% Education expenditures: 6.5% of GDP Unemployment rate :7.6%


Government :Government Type: Parliamentary democracy Independence (from U.K.): October 10, 1970. Constitution: July 1997 Currency: Fiji Islands Dollar


Economy Overview :Economy Overview GDP (purchasing power parity): $3.616 billion   GDP - composition by sector: agriculture: 8.9%  industry: 13.5%  services: 77.6% Major Industries: sugar cane, tourism, gold mining, fishing and forestry Merchandise Exports (Value): FJD58.5 million Major Exports: garments; sugar; gold; fish; textile yarns, fabrics and made up articles; molasses and coconut oil Merchandise Imports (Value):  FJD230.3 million Major Imports: manufactured goods; machines, transport equipment; mineral fuels; food and live animals; and chemicals


GDP Growth (%) 2002-2008 :GDP Growth (%) 2002-2008


Composition of GDP :Composition of GDP


Key statistics :Key statistics Inflation rate: 0.5% Foreign reserves : $615.5 millions GDP in 2007 : -6.6% GDP in 2008 : 1.2% GDP in 2009 : 2.4% Growth rate is 3.9%


Industrial Sectors :Industrial Sectors Tourism Agriculture Fisheries Forestry Garments and Footwear Manufacturing Mining Sugar


Investment Policy and Regulations :Investment Policy and Regulations market-driven welcomed from all legal sources welcomed into all areas of the economy, except where legislation reserves specific economic activities for citizens, for social policy purposes legislation should be transparent and efficient


Investment Opportunities :Investment Opportunities Child-minding services; commercial bakery; tourism supply services; eco-tourism accommodation services; petrol and associated services; deep-sea fishing; dried fruit; commercial managed eco-forestry;


Market value of publicly traded shares :Market value of publicly traded shares $586.7 million


Exchange Rate :Exchange Rate


AGRICULTURAL SECTOR :AGRICULTURAL SECTOR Agriculture contributed only 12%towards the country’s GDP Food imports increased from F$225m in 2000 to F$394m in 2007 Low productivity reflects on many factors Small subsistence farming Low level of mechanization Inadequate inputs and high costs Inadequate infrastructure Land tenure insecurities


PROBLEMS and ISSUES :PROBLEMS and ISSUES Geographical location- high cost to procure goods and services Climate change- land degradation, coastal erosion, Sea level rise – 51cm by 2100(coastal inundation) Low level of reliance on local production- food importation increased from 2001 to 2007 by 175% Technology adoption rate very low


ENERGY SECTOR :ENERGY SECTOR 50% of the population have access to power supply Total energy available from Fiji Electricity Authority - 767gwh 65% from hydro, 21% from diesel, 13% from HFO (heavy fuel oil) and 1% from wind and solar Prices - $1.65(2007) to $2.28(2008) per litre Investment on bio fuel now emerging


Back Office Information Export Service Industry :Back Office Information Export Service Industry Duty free imports of IT and telecommunications equipment; • 100% deductibility on all R&D expenditures; • Investment allowances for investments in IT; • Unrestricted movements of foreign exchange and profits repatriation


Tourism :Tourism Important element of the Fiji Islands’ economy Tourist hotels is located in the northern and western parts of the main island Supporting sevices: Inbound tourist operators Hire cars Transport companies Restaurants Major source of tourists


ECOTOURISM :ECOTOURISM E.T has to fulfill 5 criteria : - culturally sensitive - ecologically sound - people-oriented - sustainable - educational/interpretational


Past three years :Past three years Travelers to the South Pacific Australia 69% New Zealand 49 Fiji 19 Tahiti 18 Other South Pacific islands 14


Summary of Visitor Arrivals and Departures :Summary of Visitor Arrivals and Departures


Slide 25:Sun and sand All inclusive resorts Nature/outdoors Local culture Water sports


COMPETITORS :COMPETITORS AIR PACIFIC SOFITEL HILTON BEACH RESORT RADISSON RESORT & SPA WESTIN FIJI RESORT & SPA MAXIA PACIFIC FIJI MATAI PARADISE YASAWA ISLAND RESORT ROSIE HOLIDAYS


COMPETITORS :COMPETITORS NISTA DESIGN LTD Oceanic Communications Quest Limited CYREX Communication Sublime Pacific Ltd Greymouse Investments (Fiji) Ltd


Rostow’s model :Rostow’s model Between the Take off stage and Drive to maturity stage


Informative links :Informative links www.fijifiu.gov.fj - Fiji Financial Intelligence Unit www.fiji.gov.fj - Fiji Government Website www.mfnp.gov.fj - Ministry of Finance & National Planning  www.fijichris.gov.fj - Computerised Human Resources Information System www.ftib.org.fj - Fiji Islands Trade & Investment Bureau www.frca.org.fj - Fiji Islands Revenue and Customs Authority www.anz.com/fiji/ - ANZ Fiji www.westpac.com.fj - Westpac www.colonial.com.fj - Colonial Fiji  www.bsp.com.pg - Bank South Pacific www.bankofbaroda-fiji.com - Bank of Baroda


Informative links :Informative links INTERNATIONAL www.imf.org/external/country/FJI/index.htm or  www.imf.org  www.adb.org/FijiIslands/default.asp or www.adb.org  www.seacen.org www.worldbank.org


thankyou :thankyou Thank you