Cruise firm welcomes extra airline seats to Fiji

www.fijitimes.com - Monday, November 16, 2009

THE announcement of new airline operators into Fiji and increased airline seats is good news to the tourism industry, says South Seas Cruises chief executive Kit Nixon.

He said the industry was only as good as the number of seats and the availability of passenger transport to get them to Fiji.

South Sea Cruises employs more than 200 staff based in Denarau, where it operates its daily boat transfers and day trips to island resorts.

Mr Nixon said the company also had a program that ran to the Yasawas through Awesome Adventures, its sister company that operates out of Mana Island through Sea Spray, and also ran water sports.

He said the more seats on airlines operating into Fiji the better it was for everyone and with Air Pacific to start flights to Hong Kong next month, it meant progress for the country.

He said devaluation of the dollar elped boost the tourism industry by bringing families to Fiji over the school holidays.

"The cost of holidaying in Fiji is reasonable. Fiji is a place where you can spend what you can afford," he said.

"We at South Sea Cruises are happy with our pricing and think our company offers people great value for money in getting out to the islands and we will continue to promote it that way.

"We play a big part in the marketing of Fiji internationally for the company and for the Mamanuca Group."

Mr Nixon said the year had been tough, especially after the January floods, and it had taken time to rebuild.

However, in the past few months the company had seen a highly-successful holiday period from Australia and New Zealand.

"We hope that over November and December we will have people consistantly coming into the country and we will get ready for some good growth next year," he said.

Fiji Hotel Room Occupancy Declines

www.fijitimes.com - Monday, November 16, 2009

OCCUPANCY rates in hotels, resorts and licensed accommodations in the country averaged 38 per cent in the second quarter of this year, compared to 45.1 per cent for the same period in 2008.

This is revealed in the Fiji Islands Bureau of Statistics "Provisional Hotels and Tourist Accomodation Statistics, Quarter 2, 2009".

In the second quarter of this year, there were 862,512 rooms available but 331,373 were sold.

There were more than 1.9million beds available but 650,685 were sold.

The bed occupancy rate was 33.4 per cent compared to 37.6 per cent for the same quarter last year.

According to the bureau, earnings from accommodation, sales of food, liquor, telephone and other miscellaneous charges for the quarter was $118.3m compared to the 2008 second quarter earnings of $119.1m.

However, paid employment in the hotel sector increased by 8.1 per cent when compared to the same period in 2008.

In terms of regions, Suva's room occupancy rate of 40.5 per cent was almost similar to last year's figure of 41.7 per cent. In the first quarter of this year, the occupancy rate for the city was 36.3 per cent compared to 33.1 per cent in 2008.

The Nadi occupancy rate of 45.5 per cent was actually more than the first quarter rate of 41.9 per cent but lesser than quarter two 2008 rate of 51.1 per cent.

Lautoka accommodation occupancy rate for the second quarter was 18.3 per cent, a decline from the 24.7 per cent recorded last year for the same period.

Coral Coast experienced an 18 per cent decline, recording 40 per cent occupancy compared to 58 per cent for the same period last year.

The Mamanuca improved with an occupancy rate of 42.2 per cent from the 2008 figure of 40 per cent.

Fiji Visitor Arrivals drop

www.fijitimes.com - Monday, November 16, 2009

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Taking in the sights ... tourists enjoy sun, surf and sand on Mana Island in the Yasawa Group. Arrival figures and occupanyc rates have dropped in the second quarter of the year, says the Fiji Islands Bureau of Statistics

THE visitor arrivals for May decreased by 15 per cent at 37,666 when compared to the 2008 period, the Fiji Islands Bureau of Statistics reveal.

Fiji's traditional markets, New Zealand and Australia recorded "significant" decreases of over 14 per cent and 16 per cent respectively.

Decreases were also recorded for visitors from South Korea and Japan.

South Korean visitors declined by 42.7 per cent to 416 while Japanese visitors were down by 41.4 per cent to 756.

For the United States market, there were 3316 visitors compared to 4401 for the same period in 2008.

The United Kingdom visitors numbered 2314 compared to 2904 in 2008.

Increases were recorded for Pacific Islands visitors which increased from 2771 to 3195.

Visitors from continental Europe also increased from 2348 to 2410.

For the six month period to May, Australians still top our visitor list making up 43 per cent of the total 227,658 visitors that arrived on our shores this year.

A total of 27,548 visitors from New Zealand arrived in the country in the six months of 2009 compared to 35,306 for the same period last year. For the six months to May this year, the bureau said visitors declined by 14.7 per cent, with arrivals falling from 267,547 to 227,658

FDB will support national development: CEO

www.fijilive.com - November 16, 2009

The Fiji Development Bank expects its role as a development banker will not overshadow its need to survive.

FDB chief executive officer Ratu Deve Toganivalu told Fiji Live it was important that the bank, as a government-owned entity, continued to support the nation’s development.

“For commercial banks, I’d say that achieving their bottom line would be one of the main things. It’s the same for FDB, but not as much as a commercial bank would do. We’d like to have a little bit of bottom line, we want to be sustainable but the key thing is development.

“We are here as government’s arm to prop the economic development of the nation. And we are owned by the government. So we’ve managed so far to survive as an organization, we’ve taken care of ourselves pretty well since our inception and I think we’re heading into a bright future with a lot of development work in store,” Toganivalu said when asked how FDB fared when having to balance its development role and survival, a dilemma that development banks worldwide are increasingly facing.

“But then again, we don’t want to jeopardize our fighting for development and jeopardize our bottom line. We must make sure that we’re sustainable that we can operate, financially viable,” he added.

But maintaining a role as a development banker does have its price, as FDB would be seen to service loans that commercial banks would not normally touch.

“I’ve heard a lot of complaints about banks asking for too much deposit and they need a lot of security, these are high risk loans.”

“But we need to help people out in the rural, “ he said.

Toganivalu gave an example of a $2000 loan to improve a farm, which would cost the FDB $1000 to service.

“I give $2000 and try to manage that account for $1000 a year, which would be the cost of me running there, supervising and trying to collect. And then a hurricane happens and all the crops are gone, where will they get their return from?

“Those are the small things that people don’t realize why there are certain pre-requisites that we want met before we lend. So if the hurricane hit the farmer and crops are not harvested, he’s stuck with the loan, and the bank is left with the debt,” Toganivalu said.

The FDB, he said, avoids being caught in its high risk ventures by following a prudent balancing ratio in accordance with its corporate plan.

In its latest annual report, FDB’s loan portolio sees most of its funds lent to the real estate sector (27.4 percent), private individuals (14.8 percent), wholesale/retail/restaurant (14.3 percent) and Building/Construction (14.1 percent)

State to seek additional loan from China

www.fijisun.com.fj-13/11/2009

The Ministry of Finance will seek a soft loan of an undisclosed amount from the EXIM Bank of China. The loan is to finance the second phase of the e governance project. Cabinet has allowed the ministry to seek the loan. China had provided US$20 million to the Government to fund Phase 1 of the project. Cabinet based its decision on a submission by the Prime Minister and Minister for Finance, Commodore Voreqe Bainimarama. He informed Cabinet that about 90 percent of the project had been completed by the end of last month. He said Phase Two of the project would be a continuation of recommendations contained in the Government's master plan. “Phase Two will focus on more deliveries, such as the creation of National Identity System, strengthening of border control solutions, and improvement of national info-communications infrastructure,” Mr Bainimarama said. “A major component of Phase Two will focus on the re-engineering of Government processes that will assist in nationwide exercises such as the right-sizing activities of the civil service,” he added. It was anticipated that Phase Two would begin next January and to be completed by December 2012. “The project team will be responsible for the provision of the required engineering work, provision of required quality assurance work, establishment of the Project Management Office, developing the required project management standards, coordination of various Government initiatives, and capacity building programmes,” Mr Bainimarama said. “Of the total 84 projects to be completed under the project, 68 were completed from January 2008 to October 2009. “The remaining 16 are to be completed within the next few months,” he said. He said the Government Project Team would continue its operation until 2012.

FIJI Water wins again

www.fijisun.com.fj - 13/11/2009

Fiji Water, a world leader in bottled water, has once again made its name after achieving the NSF International Bottled Water Certification. The achievement makes Fiji Water the first bottler to meet NSF, US Food and Drug Administration (FDA) and European requirements. This has allowed the international brand to again prove critics wrong following claims by a US magazine some months back. Director Development and External Affairs, David Roth, said FIJI Water certification from NSF International helps ensure the safety and quality of FIJI Water worldwide. Mr Roth said in order to achieve NSF International Certification, FIJI Water's facility at Yaqara was subject to a rigorous audit to verify that the bottling facility met all certification requirements. This included Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control Point (HACCP), which are widely-accepted standards for food safety. “FIJI bottled water was also tested to both U.S. Food and Drug Administration (FDA) and European requirements for more than 160 chemicals, inorganic, radiological and microbiological contaminants,” Mr Roth said. Director of Product Quality of FIJI Water, Loren Merrick, said the importance of achieving NSF International Bottled Water Certification enables them to further demonstrate their emphasis on quality to their customers and the high standards they set for their water. “We send staff members around the world to obtain training with laboratory and quality experts, including NSF International's Headquarters in Ann Arbor, Michigan, US, to ensure we stay with quality control standards,” Mr Merrick said. He said ongoing testing and annual audits would ensure continued compliance with NSF International standards, as well as US and European requirements. “Obtaining NSF International Certification underscores Fiji's commitment to quality, safety and customer satisfaction,” General Manager of NSF International's Beverage Quality programme, Chris Dunn said. In 2008, FIJI Water launched FIJI Green, a campaign to reduce their carbon footprint, become carbon negative, and increase recycling efforts. They were the first company to release carbon footprint of their products in 2008.

Cabinet approves Gaming Decree

www.fijisun.com.fj - 13/11/2009

Cabinet has approved the Gaming (Forms & Fees) Regulations 2009 for the facilitation of the licensing mechanism under the Gaming Decree 2009. Cabinet based its decision on a submission by the Attorney-General and Minister for Justice, Anti-Corruption, Public Enterprises, Tourism, Trade and Communications, Aiyaz Sayed-Khaiyum. Mr Sayed-Khaiyum said that the Regulations provide three standard forms; application form for Class 1 gaming (where all proceeds go to charity); application form for Class 2 gaming (for commercial gain), and, licence format for all licences. He said the Regulations provide for licence fees for both classes of gaming.

Support SMEs

Support SMEs, microfinance: Naiyaga

www.fijilive.com - November 12, 2009

The chief advisor to the governor of the Reserve Bank of Fiji, Inia Naiyaga, is throwing his weight behind the development of microfinance and small and medium sized businesses.

In an interview with Fijlive, Naiyaga said achieving a vibrant microfinance and SME sector was the best way to spread wealth around to reach ordinary people.

“These Small and Micro enterprises and also the financing of these projects are very important because they are catering for a group of people that normally don’t have access to the kind of financing that you and I have, like banks. So this sector is serving a very useful purpose and the results have been so far, we’ve seen the improvement in the standards and livelihood of people,” Naiyaga said.

“I think the more support and recognition we give to these types of small and micro businesses, the more it will contribute to the economy of Fiji, because it’s widespread, which means that the wealth can be shared to the ordinary people not only to a few like in the big businessmen in the cities and towns. So to me it’s going to play a very important role as we move into the future,” he added.

Last week, the Reserve Bank met with stakeholders from the SME, microfinance and financial sectors in a public symposium where it hoped to gauge how best the two sectors could be developed.

Specifically, the RBF wanted an indication of the progress made by commercial banks as they were required in April to put in place microfinance facilities by January next year.

“We are still working with them on that,” Naiyaga said.

At last week’s workshop, RBF governor Sada Reddy stressed the importance of getting the poor and those considered unbankable to have access to savings and credit facilities, as this would ultimately help in reducing poverty.

Reddy said commercial banks played an influential role in addressing this through financial inclusion initiatives.

A crucial outcome of the workshop would be an Action Plan to guide the development of the sector, he said

Academic links FNPF to poverty

www.fijilive.com - November 13, 2009

Imprudent management of the country’s only public superannuation fund can trigger a worsening of Fiji’s poverty situation, a local economist said.

In an interview with FijiLive, University of the South Pacific lecturer Dr Sunil Kumar said it was important that the Fiji National Provident Fund, being the only form of savings that most workers have, be properly managed as its poor performance or even collapse can lead to widespread poverty.

This comes amid continuing public concern on the management of the pension fund’s massive $3 billion investment portfolio, equivalent to half the country’s GDP.

“I think the concerns that have been raised are legitimate ones and because FNPF is a superannuation fund, people who are coming out of work, who are retiring, they need those funds,” said Kumar.

“I believe that the government and those in the drivers’ seat need to take some initiatives to act on the concerns that have been raised and take some initiatives to act on them and make sure that due diligence is observed in terms of the use of those funds,” he added.

If the FNPF did get into financial trouble, it would mean that those who are retiring may get less money or none at all, which would increase Fiji’s poverty population.

“The management of the FNPF has direct implications to Fiji’s poverty level, as the people who will come out of their jobs after retirement would have their livelihood affected drastically if the fund collapses,” Kumar said.

The FNPF recently announced a consolidation of its investment policy in a bid to cut costs and streamline its investment policies as it continues its struggle to sell off non-performing assets as well as spread its entire $3 billion portfolio in a narrow domestic market.

At the close of its 2007 financial year - in June 2007 - FNPF reported it had just over 340,000 members.

The Fund is yet to release its 2008 annual report

World Bank to advise Fiji on economy

www.fijilive.com - November 12, 2009

The World Bank expects to play a supportive advisory role in Fiji’s return to economic prosperity, a spokesperson accompanying an International Monetary Fund (IMF) team to Fiji has said.

The World Bank’s Sydney-based communications officer Aleta Moriarty told FijiLive she was accompanying the IMF team to carry out its regular economic review that it provided to its member countries.

“This aim of this visit is to analyse the economic situation in the country. The livelihood of the people of Fiji depends upon economic stability. To this end the World Bank will be looking closely at the economic conditions in the country and will provide suggestions on how best to improve the economic conditions for the people of Fiji,” said Moriarty.

The IMF part of the delegation is here to conduct its 2009 Article IV Mission, a regular economic appraisal process that it performs for its member countries, and it announced on Tuesday that its team will review Fiji’s macroeconomic developments and the outlook, as well as discuss related government policies.

Fiji’s Prime Minister Commodore Voreqe Bainimarama, who met with the delegation early this week, said yesterday that the Article IV Mission would assist Fiji in preparatory work on an Economic Reform Program that the government has already planned for.

Fiji’s challenge, he said, was to lift its dismal growth rates of below two per cent in the past to five per cent in the next three to five years and the only way this was possible was through reforms in a number of sectors.

The last publicly released result of an IMF Article IV Mission to Fiji was in 2004, where IMF directors expressed concerns about the increase in public debt - which at the time was over 40 percent of GDP and considered too high - and the deterioration in the external position due to rising imports, among other things.

They also urged the authorities then to make “a front-loaded effort to carry fiscal consolidation forward more rapidly.”

PAFCO Gets US20m Boost

US$20mln investment to lift PAFCO production

www.fijilive.com - November 08, 2009

Struggling Fiji cannery, the Pacific Fishing Company (PAFCO), recovering from a factory fire last year, is to receive a US$20 million investment injection from North American partner Bumble Bee Seafoods, chairman Peniasi Kunatuba revealed last night after the company was named Exporter of the Year.

Kunatuba told FijiLive that with a Pagopago cannery relocating back to Thailand and another Samoan cannery Starkist toning down operations, Bumble Bee had decided to increase its investment in PAFCO.

“Initially will be US$5 million for a cold storage. But for us to be able to double the capacity, we’ll have to look at US$10-$15 million. So you’re looking at about a US$20m investment in the very short term.”

The additional US$10 million to $15m million would provide for a general operational uplift to enable PAFCO to increase its throughput, Kunatuba, forecasting that the cannery would at least double its current volume by the beginning of next year.

He also said the company was expecting an end of the year profit of $3 million after a fire at its factory in Levuka last year caused finances to break even.

SPSE new index

Elenoa Baselala

www.fijitimes.com - Tuesday, November 03, 2009

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Trading session at SPSE

THE South Pacific Stock Exchange has launched its SPSE Total Return Index ("STRI") and it is expected to enhance investment decisions.

Indices are used to assess the performance of a portfolio of stocks representing a segment of the overall market.

"Different stock indices can be calculated in various ways. Accordingly, even where indices are based on identical securities, they may measure the relevant market differently because of differences in methods of calculation," SPSE chief executive officer Jinita Prasad said.

STRI is an aggregate market capitalisation index which reflects the total return from the stock market including the capital yield in price and dividend returns.

The index is constructed on a base of 1000 set at January 4, 2000.

The exchange has been using the Kontiki South Pacific Stock Exchange Index (KSPX) from 2000. KSPX is a share-price index composed of the market-weighted average of the 16 companies listed on the SPSE trading board and is prepared by Kontiki Stockbroking Limited.

"The introduction of the SPSE Total Return Index will now give a wider choice to the share market brokers to analyse the market and advise their clients in making informed decisions and the prospective investors can now study the movement in STRI and make their investment choices as well," Ms Prasad said.

She also highlighted that STRI was constructed to measure the change or movement in the whole of the SPSE's share market through changes in total returns (price plus dividends), also known as accumulation index.

The price index measures only capital gains and losses, and ignores dividends or distributions received, whereas an accumulation index provides a total return by including such income paid to the shareholder.

It follows that the accumulation index will typically be higher than the price index. In essence, these indices are the performance yardstick for SPSE.

Alongside STRI, the exchange will also be maintaining equal weighted price and total return indices.

Mindpearl describes as momentous

www.fijitimes.com - Tuesday, November 03, 2009

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Operators of the Mindpearl global customer care services at work in the new call centre at Kalabu yesterday.

THE scale of a call centre which started on Sunday is the first of its kind.

FIJI Islands Trade and Investment Bureau chief executive Annie Rogers described the commencement of Mindpearl's commercial operations as a momentous occasion, saying it was not only special for the project stakeholders but also for the people of Fiji who will be able to take advantage of the huge employment opportunities over the next three years.

"Once fully operational, the Mindpearl Call-Centre will be used as a beacon for prospective investors looking to explore opportunities in Fiji's growing ICT sector," Ms Rogers said.

"FTIB will showcase the Mindpearl operation to other potential back-office and call-centre investors as what Fiji can offer and that large ICT operations such as this can be more than adequately facilitated by Fiji."

Ms Rogers said it was FTIB's ultimate goal to ensure that sustainable long-term investments were brought to Fiji.

"The ICT sector is one of the key sectors that FTIB is aggressively promoting given its potential to create significant employment opportunities in the short-to-medium-term, while also generating much needed foreign-exchange earnings from the export of services," she said.

"The bureau is working determinedly to establish and fortify Fiji's position as a hub for ICT investments in the Pacific region.

"Large ICT projects such as this will go a long way in achieving these objectives."

Access any time

www.fijitimes.com - Tuesday, November 03, 2009

IN the new year, visitors from Australia and New Zealand will have access to the national airline's reservation any time of the day.

Air Pacific's general manager sales and marketing Michael Nacola yesterday said they were excited about their partnership with Mindpearl, a global aviation contact centre provider. He said there were three reasons they chose to work with Mindpearl.

"First, to improve the level of service delivery we give our customers. At the moment, there are limited hours in Australia, New Zealand and Fiji.

"The first step in the move to Mindpearl is to enhance the coverage we provide customers," he said.

"When we move to January 1, there will be a 24/7 representation. So customers in Australia, New Zealand and Fiji can have access to Air Pacific any time of the day, 365 days a year." Mr Nacola said by establishing a contact centre in Fiji, Air Pacific was not moving from its original point of contact.

"Third, we want to work with FTIB and other major businesses in Fiji in terms of establishing opportunities of employment in Fiji," he said.

2000 jobs for locals

www.fijitimes.com - Mary Rauto

Tuesday, November 03, 2009

OVER the next three years 2000 locals will be employed by a global contact centre which would have invested $20million by its fifth year of operation.

On Sunday, Mindpearl officially took over Air Pacific's telephone reservations centre.

The call centre received its first call at 7.02am and by 10pm staff members had attended to more than 200 calls from Fiji only with services to Australia and New Zealand to start in three weeks.

Mindpearl chief executive William Pattison said the calls ranged from flight times to buying tickets.

Forty locals have been employed so far.

"Mindpearl welcomes Fiji's national and regional airline, Air Pacific and Pacific Sun, as our launch customers in Fiji," he said. "Our target is to grow this facility to accommodate 2000 jobs within the next three years. "We look forward to welcoming our callers from Australia and New Zealand with the traditional bula greeting as they make their first call to Air Pacific.

"More important, this development will relocate jobs presently in Australia and New Zealand to the Fijian shores.

"We're excited to be part of Fiji's commerce and industry development in what we believe is the next global contact centre hub."

Mr Pattison said they were looking at employing individuals with a good attitude and fluency in English.

"The actual training we will administer ourselves. We are more interested in character rather than technical skills. We cannot train the character.

"The bula smile that comes over the phone is a component we will sell, whether the call is from London or Savusavu."

FHL marks 25th year

www.fijitimes.com - Friday, October 30, 2009

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Fijian Holdings chief executive Sereana Qoro shares a light moment with guests during the 25th anniversary yesterday

Stakeholders of Fijian Holdings Limited celebrated its silver jubilee anniversary yesterday at the lower Civic Centre Auditorium.

The event marked 25 years of successful business by the Fijian Enterprise formed in 1984.

Chief guest at the celebrations Commodore Voreqe Bainimarama said the initial aim behind the formation of FHL was to encourage taukei (indigenous people) participation in the commercial sector.

He said FHL had a portfolio that included total investment of $142million, annual group revenue of $230m and group net assets of $166.8m.

"FHL is a major player in Fiji's corporate sector. The company has nine subsidiary companies and 12 associated companies," he said.

"FHL has ventured out of Fiji and currently serves customers in Vanuatu, Tonga, Samoa, Solomon Islands, Wallis and Futuna, and Kiribati.

"This initiative supports the theme of the celebrations Growing Beyond Fiji.

"The theme is appropriate at a time when my Government is focusing on the promotion of exports."

CMDA back in RBF fold

www.fijitimes.com - Saturday, October 31, 2009

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The Capital Markets Development Authority is now under the control of the Reserve Bank

A CONTINUOUS increase in the cost of maintaining the Capital Markets Development Authority's operations is one of the major reasons it was brought back under the arm of the central bank.

Reserve Bank of Fiji governor Sada Reddy cleared the air on this shift and said the CMDA could not justify the rise in costs because it would have led to increase in fees, which could later affect the capital market.

He said when the CMDA was established, it was hoped that it would be able to sustain itself as capital markets was forecast to grow strongly.

"When the CMDA was set up we were thinking that in five to six years, the capital market will grow quite strongly and we were hoping that the number of companies (to list) will increase to 25," Mr Reddy said.

"We were hoping that on the back of that kind of growth, the CMDA will be able to sustain itself through the authority. Unfortunately that did not happen," he said. "The cost of operations of CMDA kept escalating.

"We could not justify it because if that cost kept going up, I think the CMDA would probably have to increase some of the fees, which -- of course -- would have affected the intermediaries and would have affected the growth of capital markets in the country."

Mr Reddy said, however, that he hoped this would not be long term and "that we can always go back where we were".

"For the time being, it has been folded back into the RBF and they are now fully operational in RBF as one of the units."

Mr Reddy also assured the business community that there was "absolutely no conflict of interest in the RBF with regard to CMDA being based there".

"If anybody has any doubt, our doors are open for you to come and talk to us and you demonstrate to me or my management where there is conflict of interest and I will make sure if there is any, I will remove that," he said.