Fiji Political Analysis: PESTLE for Hotel Investment
This paper presents the political component of a PESTLE analysis prepared for an Australian parent company considering hotel and resort acquisition in Fiji. It examines Fiji's government structure, constitutional history, and the series of military coups that have destabilized democratic governance since independence from Britain in 1970. The analysis addresses press freedom, rule of law, corruption, and the suspension of Fiji from the Commonwealth of Nations. It also evaluates the regulatory environment for foreign-owned businesses, noting discriminatory tax and permit practices, and concludes with an assessment of political trends — including the case of Fiji Water — that affect the feasibility of foreign investment in the country.
- Overview of Fiji and Its Economy: Geographic setting, colonial history, and economic base
- Government Type and Structure: Republic in name, autocratic rule in practice
- Government Stability and Military Influence: Four coups since independence destabilize governance
- Press Freedom, Rule of Law, and Corruption: Media controlled; Commonwealth suspension for corruption
- Regulation and the Foreign Business Environment: Foreign firms face discriminatory taxes and bureaucracy
- Political Trends and Investment Outlook: Autocratic drift threatens foreign investment viability
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What makes this paper effective
- The paper applies a clear PESTLE framework to a concrete business scenario, grounding abstract political analysis in practical investment decision-making.
- Each section addresses a distinct political dimension — structure, stability, rule of law, and regulation — giving the analysis logical coherence and easy navigability.
- The use of specific events (the four coups, the Commonwealth suspension, the Fiji Water tax dispute) anchors the argument in verifiable real-world evidence rather than generalization.
- The conclusion acknowledges competing perspectives — isolation versus engagement with the regime — showing awareness of geopolitical complexity.
Key academic technique demonstrated
The paper demonstrates applied political risk assessment within a business framework. By systematically moving from government type to stability to regulatory environment to forward-looking trends, it shows how political science concepts translate into actionable investment intelligence — a skill central to international business and public policy writing.
Structure breakdown
The paper opens with a country overview establishing geographic and economic context. It then addresses government type and constitutional background, followed by a stability assessment covering Fiji's four coups. Subsequent sections cover press freedom, corruption, and legal environment, then foreign business regulation. The paper closes with a trend analysis — anchored by the Fiji Water example — and a brief normative discussion on engagement versus democratic principles.
Overview of Fiji and Its Economy
The Republic of the Fiji Islands is an island nation in the South Pacific, situated just northeast of New Zealand. Fiji was a British colony until 1970, following approximately a century of occupation. Because of an abundance of forests, minerals, and fish resources, Fiji is one of the most economically developed island nations in the region. Today, the major economic activities for the islands are tourism and sugar exports (Central Intelligence Agency, 2010).
This paper presents the political component of a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis prepared for an Australian parent company that wishes to set up hotel and resort operations in Fiji. The company's preference is to acquire an existing hotel or resort, retain its staff, and modernize and restructure operations.
Government Type and Structure
Fiji is officially a republic. The 1997–1998 Constitution encourages multiculturalism and makes a multiparty governmental system mandatory. The current Chief of State is Ratu Nailatikau, while the Prime Minister has been placed under house arrest. In practice, democracy has been subsumed in Fiji. Although the Constitution remains formally on the books, the actuality of government is a network of local chiefs who control individual village areas, with the national government controlled by a self-appointed autocrat. This autocrat controls the military and therefore suppresses any serious opposition to the coup (Central Intelligence Agency, 2010).
Understanding this dual structure — constitutional formality alongside de facto authoritarian rule — is essential for any foreign investor evaluating political risk in the country.
Government Stability and Military Influence
Fiji's political environment is relatively unstable. Since independence from Britain in 1970, the country has experienced four coups: two in 1987, one in 2000, and one in 2006. Since 1987, the military has either ruled directly or been heavily involved in influencing successive governments, particularly since 2007. In October 2009, the new President of Fiji suspended the Constitution, dismissed the Court of Appeals, and "appointed himself as the Head of State of Fiji under a new legal order" (Pretes, 2008).
This pattern of military intervention in civilian governance represents a persistent structural risk. A foreign investor cannot rely on legal continuity, enforceable contracts, or predictable policy, as any of these may be altered or nullified by executive decree.
Press Freedom, Rule of Law, and Corruption
All press, publication, and legal institutions are now controlled by the ruling party. In September 2009, Fiji became the second country to be suspended from the Commonwealth of Nations, due in large part to rampant corruption (BBC News, 2009). The current voting system heavily favors indigenous Fijians at the expense of multi-ethnic minorities. In addition, international watch groups have held the current dictator responsible for human rights violations.
The absence of an independent judiciary and a free press significantly increases operational risk for foreign businesses. Without reliable rule of law, dispute resolution mechanisms are ineffective, and companies have little legal recourse if agreements are broken or assets are threatened.
Works Cited
AAP 2010, Massive Tax Hike Sees Fiji Water Turn Off the Taps, viewed April 2011, http://www.couriermail.com.au/business/massive-tax-hike-sees-fiji-water-turn-off-the-taps-and-let-go-hundreds-of-fijian-workers/story-e6freqmx-1225963165587.
BBC News 2009, Fiji Suspended from Commonwealth, viewed April 2011,
Central Intelligence Agency 2010, CIA World Factbook — Fiji, viewed April 2011, http://www.cia.gov.
David, G 2009, Dealing with the Dictator, viewed April 2011, http://www.theaustralian.com.au/news/features/dealing-with-the-dictator/story-e6frg6z6-1225698321979.
International Finance Corporation 2011, Starting a Business in Fiji, viewed April 2011, http://www.doingbusiness.org/data/exploreeconomies/fiji/starting-a-business/.
Pretes, M 2008, Coup: Reflections on the Political Crisis in Fiji, ANU E. Press, Canberra.
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