KEY POINTS:
Villagers in the outer Fijian islands will feel the economic effects from this week's coup as tourism investors review plans, said a New Zealand-based tourism expert.
Dr Simon Milne, professor of tourism at AUT University, said investors had increasing looked outside the traditional tourism areas like Denarau, but will be reconsidering plans in light of the current instability.
Investors with completed hotels or building work in progress are unlikely to pull out, he said, but the critical issue is the people who were planning developments over the next couple of years.
The tourism sector in Fiji had bounced back after the three previous coups, said Dr Milne, but at a certain point investors will start looking at Samoa, Vanuatu, or Cook islands offering a similar kind of experience with much greater political stability.
"Everything was looking very positive - that's all gone," said Dr Milne.
He said tourism development had the potential to breath new economic life into parts of the country that had previously missed out on the tourism economic wave.
Money from land leased to resort developers provides a steady income to village communities and landowners, as well as the "trickle down" benefits from the hotels and resorts, said Dr Milne.
"I think it's the issue of employment in particular which is crucial when we look at the issue of the outer islands. There aren't a lot of opportunities for young people and certainly tourism represents one of the few options," he said.
Evans Young, project manager of Vulani Island Resort and director of Hopper developments, has been waiting on tenterhooks for news from Fiji.
Planning for the 265 hectare Vulani Island Resort near Nadi - slightly bigger than Denarau - has been put on hold while the New Zealand owners, Hopper Developments, wait for a clearer picture of what is happening in Fiji.
"We are sweating a lot of holding costs at the moment," said Mr Young.
While work continues on planning "we haven't got pedal to metal" said Mr Young.
He said with the uncertainty in Fiji the company cannot afford to go charging in committing large sums of money.
Mr Young said it highlighted the risks of developing in the South Pacific and may drive some investors to either New Zealand or Australia.
- NZ HERALD STAFF
