February 25, 2010

Air Pacific to Struggle on Australia to Fiji route

Fiji Broadcasting Corporation, February 25, 2010

National carrier Air Pacific say they will face ‘abnormal’ competition against two Australian-based airlines flying the Sydney to Nadi route.

Air Pacific chief executive John Campbell say the Australian routes are extremely important for Air Pacific and represent one of their major sources of turnover.

However airline V Australia has been flying this route from December last year while the Qantas-owned JETSTAR airline will commence operations soon on the same route.

Campbell says that collectively, both airlines will add around 50 per cent more seats on the Sydney route, which is greatly in excess of the growth appetite of the market.

He says there will be some stimulated growth driven by artificially low prices and Air Pacific is expecting to lose some of its share to the new capacity.

In order to preserve its market share, Campbell says Air Pacific is competing on price on all routes and will work closely with the tourism industry to help build visitor arrivals to fill the available seats and hotels.

The airline believes that the world is still recovering from the

global financial crisis and it will take some time for consumers, particularly from the USA, to feel confident in spending money on holidays.

As a result, Campbell says the year will be challenging and will require constant promotional activity to keep flights at a reasonable load factor.

February 24, 2010

'150,000 to access banking by 2014'

Fiji Live News - February 23, 2010

A new Fiji body set up to spearhead the government’s microfinance campaign wants 150,000 people in Fiji to have access to banking services by 2014.

The goal has been set by the 11-member National Financial Inclusion Taskforce chaired by Reserve Bank of Fiji (RBF) governor Sada Reddy, with members from banks, micro finance organisations and the business community.

“The goal of the task force is to reach 150,000 unbanked clients by 2014 through a nationally coordinated effort, supported by a variety of financial service providers, offering a broad range of relevant, accessible, affordable and cost effective financial services,” said Filimoni Waqabaca, RBF’s Chief Manager Financial Systems, Development and Compliance.

“The overall goal is to reach 150,000 new clients. I think that is just one third of the number that’s still there perceived to have not been reached through financial services. But we will start with 150,000 and if we achieve more, it will be good progress,” he added.

Waqabaca said the taskforce, formed after a national symposium on micro finance held in August last year, has as its core vision the provision of financial services to every one in Fiji, “regardless of economic situation or geographical location.”

“The vision is: for all Fiji citizens, regardless of economic situation or geographical location, to have access to appropriate, affordable financial services that help individuals and households increase their financial security and provide greater opportunities

for sustainable livelihood for communities in Fiji. Financial service providers are to provide these financial services on a sustainable basis.”

Decisive Actions Needed for Fiji: IMF

Fiji Live News - February 24, 2010

The International Monetary Fund is urging Fiji to take more decisive actions to restore macro-economic stability.

It revealed this in its Public Information Notice (PIN) released last month, which detailed the assessment of its executive board after last November’s economic consultation mission to Fiji.

“Faced with increasing budget pressures, the authorities have made commendable efforts to restrain current spending and limit the overall fiscal deficit in 2009, while the devaluation of the Fijian dollar has helped reverse the sharp decline in foreign exchange reserves,” the IMF PIN noted.

“The economic situation nevertheless remains challenging, and downside risks remain high. Directors therefore stressed the need for further decisive actions to restore macroeconomic stability and implement structural reforms needed to lift growth and ensure debt sustainability over the medium term.”

The assessment also raised concerns about the level of Fiji’s debt, saying it was important to reduce it in order to restore economic stability.

“While acknowledging the difficult economic situation, most directors recommend a faster pace of consolidation starting from 2010 than is currently envisaged. They considered that infrastructure rebuilding needs to be offset by expenditure measures, including civil service reform, while revenue could be strengthened by rationalizing tax incentives, improving tax administration and raising excise taxes. Directors encouraged the authorities to adhere to their earlier target of reducing central government debt to 45 percent of GDP by 2014.”

The IMF also supported the tight monetary policy stance taken by Fiji to safeguard immediate economic stability.

Fiji this month applied for a $1b loan from the IMF.

February 22, 2010

Women enjoy micro-finance gains

Fiji Times - Monday, February 22, 2010

MEMBERS of the public had a chance to learn about micro-finance and business planning at a micro-finance expo at the Westpac Bank in Suva on Saturday.

It was organised as part of the bank's aim to help the people learn about micro-finance.

Reserve Bank official Filimoni Waqabaca applauded Westpac's initiative.

Mr Waqabaca said it was important for people to have a good knowledge of credit, interests and borrowing aspects.

Some women at the expo were very excited by the information they received.

Iva Mere said the knowledge would help her improve her family budget and allow her to save more.

Ms Mere said such initiatives were beneficial for people because they learnt about how to get help from the banks for their homes and families.

February 12, 2010

Commission Removes Restrictive Agreements

12 February 2010

The Commerce Commission has concluded its investigation of restrictive Trade Practices by Mobile phone company, Vodafone Fiji Limited, and the commission and Vodafone have amicably resolved that its restrictive or exclusive agreements have to stop immediately and open competition should be allowed.

Commission Chairman, Doctor Mahendra Reddy said Vodafone will now have to comply with the Commission's decision with immediate effect.

He said one of the decisions’s include Vodafone Fiji terminating all exclusive media texting platform agreements with all radio stations.

With the radio texting promotions, Vodafone Fiji will no longer be able to restrict other mobile operators from entering into agreements with the radio stations for texting promotions.

Dr Reddy said it will continue to monitor the market for any possible anti-competitive behaivior by any operator and will use all its powers derived from the relevant acts to ensure that effective competition and informed markets are promoted, fair trading is undertaken and consumers and businesses are protected from restrictive practices.

Following the announcement, Vodafone Fiji said it has always endeavored to work within the confines of the law of the land.

Vodafone Fiji Manager Corporate Affairs, Shailendra Prasad said whilst the company has a legal right to pursue the matter in court, it has chosen to amicably resolve the matter with the commission by terminating the agreements and replacing them with new ones.

Prasad said Vodafone cooperated fully by providing all relevant agreements and documents that the commission required for their investigations into possible anti-competitive behaviour.

Prasad said Fair Trading is still a murky area given that the interpretation of the Fair Trading Decree is still not very clear.

Vodafone also said fair trading and anti-competitive has also not been challenged in Fiji courts and there is no local precedence to support an argument either way.

Prasad said the only guide is the Fair Trading Decree itself which could be interpreted in different ways by different people.

Vodafone said despite this, the company has made a decision to work with the Commerce Commission in the spirit of promoting fair competition in the market.

Meanwhile Digicel Fiji said they look forward to further strengthening their positive relationships with the business community, to ensure that all the people of Fiji will now have the choice on what to use.

Digicel Fiji CEO Matt Davey said their message to the business community is that their doors are open and they are looking forward to working with them as real partners.

Tourism pioneer says goodbye to Costello

Fiji Times - Margaret Wise

Friday, February 12, 2010

DICK Smith, who is credited for pioneering tourism in Fiji alongside the late Daniel Costello, was in Vuda yesterday to pay his last respects to the late owner of Beachcomber Island Resort.

The hotelier was accompanied by industry partners which included the head of the Tourism Ministry, Aiyaz Sayed-Khaiyum, Y.P. Reddy of the Tanoa Group, Dixon Seeto from the Hexagon Group, Bruce Moonie from Coral Sun, Joe Tuamoto from Tourism Fiji, James Sowane from the Society Of Fiji Travel Associates, and representatives from Pacific Sun and Air Pacific.

The group was received by Daniel Rae Costello, his brother Johnny, sisters Katie, Tara and Marika and members of the Nakelo clan from Vuda -- the traditional landowners of Beach-comber Island.

"Dad was brought back home from Australia free of charge courtesy of Air Pacific and he will be flown to rest in Savusavu free of charge courtesy of Air Wakaya," said eldest son Daniel Rae.

"This is a touching gesture, and on behalf of the Costello family I would like to thank them."

The late Daniel Costello's body will lie in state at the Anchorage Resort in Vuda.

A funeral mass will be held at Our Lady of Perpetual Help Parish in Lautoka at 10am today.

He will then be flown via Air Wakaya from Nadi to Savusavu on Saturday for burial at Wina.

Described by many as a pioneer of the tourism industry in Fiji, Costello built Beachcomber Island Resort in the early 1960s and was also the owner of Fiji Meats Ltd.

Daniel Costello was 76 years old when he died. He is survived by his wife Annette, and children Daniel Rae, Vincent, Johnny, Katie, Tara, Marika and Justin.

Digicel lays off 55 workers

Fiji Times - Friday, February 12, 2010

DIGICEL has laid off 55 staff members as a result of consolidation of its Nadi and Suva operations.

This was confirmed by new Digicel chief executive officer Matt Davey, who took over from John Delves. He said 55 staff members opted for redundancy packages while five were unsuccessful when they reapplied for their positions.

Mr Davey said everyone was offered a chance to reapply for their positions, with most of the workers who were laid off coming out of the Nadi operation.

Mr Davey said Fiji was not an easy market but Digicel was very innovative and would come up with innovative deals.

February 3, 2010

Inflation at 6.8% in 2008, an increase of 0.8 %

Inflation at 6.8% but should improve: RBF
February 02, 2010

The Reserve Bank of Fiji says inflation in December 2009 stood at 6.8 percent, an increase of 0.8 percent from the previous month and a 0.2 percent increase over 2008.

Increases in food and transport prices together with other miscellaneous items have been the main cause, according to the RBF January economic review.

This despite its earlier inflation forecast of 9.5 percent for December 2009 following last April’s 20 percent devaluation of the Fiji dollar.

While the RBF estimates inflation in 2010 at 2.0 percent, risks that may affect the forecast include higher commodity prices especially oil in the coming months as the global economy picks up, as well as higher prices of market items in short supply following Cyclone Mick that hit Fiji last month.

The RBF also said that Fiji’s trade deficit up to September 2009 narrowed to $1.2 million, while personal remittances (which grew by 56.5 percent from the previous year) strengthened the current account.

$623m worth Projects in 2008

Timoci Vula

Fiji Times News - Tuesday, February 02, 2010

TWO hundred and eighty one projects valued at $623.8 million were implemented in 2008, and creating 2262 jobs for locals.

The Fiji Islands Trade and Investment Bureau (FTIB) says while this was a good achievement, this record included the implementation of projects that were registered in past years.

Chief executive officer Annie Rogers said this was also likely to include projects that had an actual implementation year other than 2008 but investors had failed to inform the FTIB that the project had been fully implemented in the relevant year and only did so in 2008.

To address this last year, she said the FTIB had focused strongly on making investors more aware that under the Foreign Investment Act (FIA), they must inform FTIB immediately by filling its mandatory declaration form that their project had started operations.

She also highlighted the monitoring of those investments that had been implemented. Ms Rogers said the monitoring process enabled FTIB to be aware of problems investors encountered and to be able to address their concerns in a timely manner.

She said they carried out 270 project site visits in 2008 to verify compliance with their registration conditions. She added visits were also conducted on businesses that wished to extend their business activities.

"Here, FTIB's focus is to facilitate and help make possible such proposed business expansions," Ms Rogers said.

She also revealed the FTIB issued three businesses with a notice to cancel and cancelled 20 foreign investment certificates after investors failed to comply with the conditions of approval.

"Of the 20 cancellations, some resulted from companies advising FTIB that they had ceased business operations, with the remainder arising as foreign investors had obtained naturalisation making the company a local business entity, which does not need FTIB registration and oversight," Ms Rogers said.

Fiji Tourist Entitled to 12% Refund

01 February 2010

Visitors to Fiji spending more than FJD500.00 in one day in selected tourism outlets in Suva and Nadi will be entitled to claim a 12 per cent refund from the country's customs authorities on departure.

Announced by Fiji's interim Prime Minister Voreqe Bainimarama, the new scheme, is seem as a boon for international visitors, particularly the thousands of cruise passengers visiting Suva this year*.

To date more than 42 registered outlets have joined in the scheme in both Nadi and Suva with many more expected to come online following the PM's announcement.

The system is very simple to use. To qualify a tourist must spend FJD500 or more on the same day at any one of the 42 designated outlets and take the goods out of Fiji within two months from date of purchase.

Visitors must present their purchases along with a VAT refund form, the original tax invoice, their passports and international boarding pass/cruise ship boarding pass at special desks being set up in both pre and post check-in areas in Nadi International Airport and on board all cruise ships entering Suva Harbour.

The new scheme will be administered by Fiji Islands Revenue & Customs Authority (FIRCA).

Tourism Fiji Regional Director New Zealand Sala Toganivalu described the decision as a timely windfall for the destination's tourism-related retail industry.

"There were some pockets within the international travel industry that had implied the destination was becoming over priced," he said.

"The introduction of the new VAT refund scheme in conjunction with the devaluation of the FJD last year provides travellers with a huge incentive to visit our islands in 2010."

*More than 50 cruise vessels are expected to enter Fijian waters in 2010, most of which have included Suva as a port of call.

*The Reserve Bank of Fiji devalued the Fiji dollar by 20 per cent against all major currencies in April, 2009.

February 2, 2010

Fiji Dairy Company warns of closure

Fiji Broadcasting Corporation , February 01, 2010

Rewa Dairy may have to temporarily close down if local prices for their products are not increased to match the rising prices of raw materials.

Rewa Dairy Chairman, Josefa Serulagilagi, says repeated requests have been sent to the Prices and Incomes Board but have fallen on deaf ears.

Serulagilagi says they are now writing to the Prime Minister as a last resort, and if nothing happens, the Company may have to close down for a while until local prices for their products are adjusted accordingly.

"We are doing the best we can and if worse comes to worse we may just have to close down. We have never been getting our prices right and every time we ask PIB to adjust our prices they have not taken any move and we cannot be getting things at higher prices from overseas and coming to sell over here at low prices … this is just like somebody in a market .. a middle man who buys a basket of cassava for $5 and sells it for $4."

Supermarkets have been without Rewa powdered milk since last week.

Fiji and Pacific Economies

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