Off to DEMA!

It's that time of the year again.

I've packed my bags and am on my way to Orlando.
Beqa Adventure Divers are at booth # 679 and we all look forward to a great DEMA show - and to Doug and Emily's engagement party! And to getting my new video housing!

Remember this post?
Well, Shark Diver was right: despite of the recession and despite of Fiji having abrogated the Constitution and devalued its currency, it's been a fabulous year! Once again, we were able to welcome more clients, to expand the scope of our research and to make inroads in our efforts to protect Fiji's Sharks, this mainly owing to the Fiji Shark Conservation and Awareness Project and Fiji's contribution to the Shark Free Marinas Initiative. And as we speak, there's more in the offing!

Regarding the industry at large: it will be interesting!
Last time, my impression was that we were overly optimistic, that a lot of overcapacity needed to be whittled away but that in the end, those who did offer a quality product and real value would survive. From this vantage point, this seems to have largely happened, albeit maybe not as dramatically as I would have anticipated. In any case, all the "good" guys seem to have survived, which is great.

Anyway, gotta go!
Vinaka and Moce Mada!

Devaluation!

On April 15, the Fiji Reserve Bank has devalued the Fiji Dollar by 20%, effective immediately.

Concurrently, it has established a series of measures aimed at preventing capital flight.

Prima vista, this is great for the Tourism Industry.
Based in foreign currency, prices for a holiday in Fiji have just dropped by 20% and that may indeed lead to an increase in demand.
Great for you, our valued customer!

Question is, is it good for us?

Common wisdom has it that a currency devaluation will automatically trigger domestic Inflation - especially in an Island Country like Fiji which is heavily reliant on imports, foremost of which Oil products but also essential goods like milk, butter, meat, flour and canned food.

BADs principal outlays are our fuel bill and the wages of our 15 wonderful staff.
I expect fuel prices to rise very shortly indeed. That may well mean that we will be forced to re-instate our fuel surcharge after having repealed it at the beginning of the year.

Regarding the other price hikes, they are likely to be inevitable once new stocks are being brought in. As most prices are controlled by the Prices and Incomes Board, I expect that to gradually eventuate during the present month.
Once again, we will have to monitor the situation but it is quite apparent that our staff, and their families, will end up being at the receiving end of these unexpected developments. If so, it is our ethical imperative that we will need to raise wages - and accordingly, our prices which are expressed in Fiji Dollars. For our foreign currency based clients, this will very likely still amount to a price reduction, albeit not by the full 20%.

Please keep watching this space.

About the Situation in Fiji

The following is obviously knee-jerk.

Today, this address by the President of Fiji has exploded on the news tickers.
It's pretty much self-explanatory.

I expect a quick and harsh reaction by many of the neighboring countries, the USA and the local and international Agencies, like the South Pacific Forum, the Commonwealth, the EU and the UN. I also expect that some countries may choose to re-formulate their travel advisories.

As a result, the Tourism Industry which is already reeling from the effects of the global recession may well take yet another hit.
But is that justified?

Fiji has not changed by any stretch of the imagination.
It is as beautiful and pristine as ever. And contrary to what the travel advisories may suggest, safety may have even improved due to the enhanced presence of the Police and the Military on the streets. Plus, keep in mind that everybody in Fiji is aware that Tourism is the main income earner and consequently, no Tourist has ever been injured during any of the past coups and political upheavals. And yes there will be a short political vacuum until the necessary appointments have been made - but the Institutions are in place and will continue to perform and life will take its course as always.
Should you shun Suva in case that there should be demonstrations? Obviously, after all one has to be smart and not go looking for unnecessary trouble! Not only in Fiji!

What has also not changed is the legendary genuine friendliness and hospitality of the Fijian people which is cited time after time by visitors as the single most memorable experience of their visit to the country, as witnessed by the many according comments in our guest book.
Our incomparable staff are looking forward to welcoming you!

Obviously, one may choose to stay away for political reasons.
If so, you are certainly entitled to your ethical and political imperatives.
But like the sanctions that are already being imposed, this will impact the welfare of the ordinary citizens and change nothing on the political front. Already, occupancy rates are extremely low and many employees in the hospitality sector are faced with reduced working hours and outright redundancies.

Luckily, so far, not us: as a niche player in the Adventure Travel sector we're doing reasonably well and are even continuing to expand our services. And the Sharks couldn't care less and continue to turn up in ever increasing numbers!
Fingers crossed!

You may argue that being directly involved, I must be biased.
But consider this: I am moving back to Fiji from Tonga and the present developments will change nothing to my decision. On the contrary, I'm planning to transfer some funds to Fiji in order to make a personal contribution to helping the country move forward.

As I said, this is all knee-jerk.
But I'm sure that tomorrow, I would say the exact same thing.

Delusional?

To say the least, my DEMA 2008 has been a memorable one.

Apart from the usual socializing and hunting for the newest and coolest gadgets and dive destinations, it has been an occasion to celebrate many old friendships, to meet some great new people and to -finally!- attend the marriage of my good friends Paul and Karen.
On the business side of things, insiders assure me that despite being kinda "slow", the overall "quality" has been excellent. In fact, bookings are fabulous and the future looks brighter than ever!
All-in-all, a fantastic event!

Las Vegas is an old haunt of mine and I took the occasion to meet up with some of my old gang of Lawyers, Bankers and other equally despicable pillars of modern Society.
With one notable exception who has sold out just in time, many are still very much in the thick of it and having progressed to ever higher executive levels, they dispose of unique insights normal mortals can only dream of. To put it mildly, what has transpired over copious amounts of Dom Pérignon, aged ribeye and tartufi d'Alba is very very frightening indeed.
The Party is truly over.

Which begs the question, what about our Industry?
Has the Show been nothing but an overly optimistic and ultimately, delusional bubble of hype and self-promotion, soon to be pierced by conditions in the Real World at large?

At the risk of being the party pooper - I fear it has, at least for some of us.
From what I can discern, a recent glut of operators, many of which liveaboard vessels, has clearly led to the oversaturation of some destinations. With the pie shrinking -and it will-, those markets will have to revert back to their true capacity. As always, this will be painful - but having said this, it'll likely most effect those businesses who bring little value to the table, be it in terms of product, service, pricing or pure and simple know how.

Like in the Real World, we shall require a change of paradigms - away from the culture of smoke&mirrors and back to the boring "traditional values", foremost of which honest hard work.
But also, living within one's means whilst observing strict fiscal discipline; a commitment to quality and safety; understanding, managing and spreading one's risks; the willingness to constantly improve on one's skills and to refine one's product; knowing the client's expectations in order to provide him with impeccable service; prudent demand-driven expansion and market development.
Sounds trivial but it is true never the less - the adage that there's no such thing as a free lunch has never been more true than now.

With that in mind, we will most certainly survive.
Smaller maybe - but likely, as a whole, more professional and hopefully, equally profitable.