I waited to report on the Fiji political situation, as I expected it to blow over. However, almost a week later, Fiji still faces political unrest. Basically, the military is in the middle of an overthrow of the government. After it started, many countries posted travel warnings because of the potential dangerous conflict.

This has undoubtedly angered potential travelers to the region, as they canceled their holiday plans. Luckily, since Fiji really isn’t considered the most budget friendly travel destination, I have an inkling that all of my readers are not affected. This is an important political and economic lesson however.

Last year, Fiji’s holiday travel occupancy was up 75% compared to 2004. Impressive. This year, it’s occupancy is down to 25%. Not good, since 25% Fiji’s Gross Domestic Product is tourism. The only way their economy could be any worse is if they poison their water supply, and lose their Fiji water exports…(just kidding)

But from the travel cancellations, Australians are getting a refund of $500. With such a big hit to their economy, their currency is being monitored very closely.

So big unrest in the Fijian travel market. After the conflict is solved, the cost of travel will surely decrease. Maybe, it’ll depreciate to a level us budget travelers and backpackers can afford. Time will tell.

Australasia’s popular hostel chains Base Backpacker and Beyond Backpackers have merged to join the largest private hostel chain. The new, combined hostel group will take on the name Base. This private hostel chain now has 3000 beds, 10 bars, and 34 travel outlets throughout Australia and New Zealand. These hostels are very popular in the backpacking community.
For a full story, visit the article at stuff.co.nz

So what does this mean for backpackers going to these hostels in New Zealand or Australia? I think it is a good thing. Base plans to renovate and improve some of their hostels which will benefit the travelers. The only potential negative in merger situations will be the lack of competition between hostels. The competition can result in lower rates according to economics 101, so the bed rates could potentially rise. But I do not see it as too big of a problem.

[tags] hostel, australasia, backpacker, travel, budget travel. [/tags]