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PAGE ONE :: WORLD NEWS :: INDUSTRY

Resorts begin laying off staff as occupancy rate plummets

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by FREEMAN WASHINGTON

SUVA, Fiji (31 May 2000) -- With governments around the world threatening economic sanctions and advising tourists not to travel to Fiji, the Pacific island nation is beginning to experience a sharp decline in bookings.

Occupancy at Shangri-La's Fijian Resort, the largest one in Fiji, dropped to 40% immediately after the coup and led to restaurant closures and layoffs.

Wolf-Dieter Flecker, the resort's general manager, said he does not think there will be a turnaround soon and fears that Japanese and Australian tourists will stay away for months.

The Fiji Visitors Bureau has received a surge of e-mails from worried travelers.

 

Two previous coups in 1987 dealt a serious blow to Fiji's tourist industry which took years to recover from the damage.  Tourism officials have expressed fears that this coup could be even more damaging to the tourist industry which generates $250 million per year, Fiji's top foreign exchange earner.

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