SUBMITTED TO

RIFAT IQBAL (RFQ)

BUS 251 – SECTION 17

SUBMITTED BY
THE KOALAS

Tausif Akib Khan 1510316030

Faiza Zahin 1431011630
Juhair Karim 1510379030
Rafatul Islam 1521085630
Ibrahim Ahmad Azmi 1511813030
Md. Shariful Islam 1510283630
Sheikh Saif Ahmed 1331078030
15 December, 2018
Rifat Iqbal
Lecturer, Department of Management
School of Business and Economics
North South University,
Dhaka, Bangladesh.

Subject: Letter of transmittal for the group project.

Dear Madam,

With due respect, we would like to gladly present our assigned group project on Final Term Paper – researching on the
country Fiji for the MDO Inc. We have tried to put our best effort in regards to implement the relevant knowledge &
Business report strategies that you have taught in this course. This report has been prepared under your supervision. This
project work never has been reproduced for any other course.

We sincerely believe we have been able to fulfil the assignment requirements according to your instructions. Stating so,
if we have made any mistakes, we humbly apologize for that and ardently believe you will point out any discrepancies
henceforth and guide us accordingly.

Yours sincerely,

Tausif Akib Khan 1510316030

Faiza Zahin 1431011630
Juhair Karim 1510379030
Rafatul Islam 1521085630
Ibrahim Ahmad Azmi 1511813030
Md. Shariful Islam 1510283630
Sheikh Saif Ahmed 1331078030
 Executive Summary
The Hotel and Tourism industry of Fiji has a very high potential to grow. After being very successful
in the domestic market with their hotel chain for MDO Inc. should really consider Fiji for their
expansion internationally. Since MDO Inc has already established top notch services and managerial
expertise around the globe it will be very easy for them to exploit this opportunity. Moreover, the
relationship between Fiji and USA has been very good or last couple of years and it will remain and we
hope it will remain as it is. The Govt. policies regarding tourism industry and FDI has been very positive
and will remain.

Geographically Fiji is in the middle of the Pacific Ocean and it has over 300 islands, among which 110
are inhabited. The main islands are Viti Levu and Vanua Levu and important cities are Nadi and
Lautoka, all o them are very popular among the tourists as well as the citizens. Geographically as well
as historically Fiji is a place for tourist attraction. Tavuni Hill Fort nd navunisole are some of the main
historically significant tourist site.

The most important thing a company should consider before investing in a foreign country is that
country’s economy. The govt. has made the economy mostly free and, in some cases, at least moderately
free. But in case of trade freedom Fiji has shown great improvement.

Considering all the other factors like the country’s climate, customs and culture of people and the
rapidly growing Hotel and Tourism industry, Fiji will be the best choice for MDO Inc to expand their
already domestically successful hotel chain.
 TABLE OF CONTENT
Introduction ...................................................................................................................................1

Purpose and Scope.........................................................................................................................2

Assumption ...................................................................................................................................3

Methodology..................................................................................................................................4

Limitations ....................................................................................................................................4

Criteria ........................................................................................................................................ .4

About Maldives.............................................................................................................................5

History...........................................................................................................................................5

Geography.....................................................................................................................................6

Population.....................................................................................................................................7

Currency........................................................................................................................................8

Economy.......................................................................................................................................8

Climate ........................................................................................................................................12

Customs and Culture....................................................................................................................13

Tourism Market Overview ..........................................................................................................14

Hotel Market Overview................................................................................................................17

Starting a Tourism Business in Maldives.....................................................................................18

Competition in the industry..........................................................................................................20

Marketing.....................................................................................................................................21

Conclusion and Recommendation................................................................................................21

Works Cited .................................................................................................................................22

 1

Introduction
Expansion of the business into the new markets may be every enthusiastic business owner’s dream and in
today’s world it has become a global trend for large corporations or industries to expand their operations in
a new region; development in technology and communication has made it possible for the companies to go
overseas for business researching about the particular area in advance. Tapping the untapped market or
entering into a new country to expand a business requires compatibility and intensive research to flourish
in the era of competition. Most of the time when the companies are operating in the same particular area or
region for a definite period of time, they hit a growth plateau. At this point, it is imperative for a company
or an industry to take their operations into a next level, preferably expanding overseas.

MDO Inc has been a very successful hotel chain in the United States with over 6 hotels all around the
country. The company showed a promising growth throughout the years and even in dire circumstances has
maintained a stable profit margin in this market. With the economy finally being stabilized, MDO Inc wants
to have a clear view where to expand its footprint in international market focusing on hotel & tourism
industry.

MDO Inc feels there’s an astounding opportunity to cater their top-notch services and managerial expertise
around the globe and its planning to explore a foreign market to expand their operations. Before expanding,
the company needs to address the roadblocks like adapting to the new country culture, cross-border
competition, competitive strategies, population, income and lifestyle. So, a throughout research needs to be
conducted before jumping into any decision. Recently, in the annual board meeting the MDO Inc has
decided to expand its operation to the exotic land of Fiji; and for the intensive market research and data
analyzing The Koalas & their experienced team of business consultants have been contacted to research on
the market situation, business feasibility, business growth and financial returns for expanding their business
in Fiji.
 2

Purpose & Scope

With almost 17 years of experience MDO Inc has been very successful with their hotel chain. They currently
have 6 hotels all over the United States which have been bringing a definite amount of revenue every year
for the company. Analyzing their last five years’ financial history, the Compound Annual Growth Rate
(CAGR) has increased and also, they have a steady Average Daily Rate (ADR). They have been awarded
four time in last six years for their hospitality service; they believe that hospitality is their key to get more
customers. Drawing their mark in the local market, MDO Inc now wants to put their footprints on the
international market.

In total the travel and tourism generated USD 7.6 trillion which covers the 10.2% of the global GDP as of
now. 292 million jobs were created through this sector as of 2016. And these numbers are witnessing a
steady growth each and every single year. The GDP in this sector is expected to increase by 4% by the end
of 2018 and to rise by 3.8% pa to USD 12,450.1bn in 2028 which is 11.7% of the global GDP. (Economic
Impact, 2018)

By the blessing of globalization and relatively open borders in recent years the hotel industry retail is also
at an all-time high. The travel and tourism sector are now filled with millions of new customers from all
parts of the world and among them a large group have access to disposable income and are willing to spend
it on exploring different parts of the world. Total value of the global retail hotel industry is set to cross USD
500 billion in 2018. Asia Pacific region has seen record 68.7% occupancy in February 2017.
 3

In this era of globalization expansion of companies is required for doing business in large scale; and what
can be a better option than the country Fiji where tourism sector is blooming every single year. According
to Fijisun Newspaper (March 13, 2018) In 2016 Fiji had 792,330 visitors which increased by 6.4 percent
in 2017, having 842,884 visitors in single year. This a great hub for expanding the hotel business.
Throughout the report we will be portraying datas and facts about Fiji and also about their market, culture,
demographic factors, economy, political affiliations and stability and possible threat and barriers of doing
business here. We will also put on an overview of the overall business situation and who are the major
players who can be regarded as the competitors.

Assumption
Our recommendations are based on the assumption that the relation between Fiji and US will remain same
until the end of the year 2019. We assume that Fiji’s FDI policy will remain supportive and there will not
be any serious change in the policy. We are also assuming that Fiji’s supportive approach to tourism industry
will remain as it is. Another assumption is that Fiji will not face any kind of natural disasters which can
lead to any kind of damage to the economy or the tourism industry. In addition, we also assume that the
expansion to Fiji will be as successful for MDO as it is for the ones in America.
 4

Methodology
Most of our information are gathered from legitimate websites of that country. We have also collected data
from verified journals and articles. We have used secondary research data from existing reports and projects.
We have considered some existing business presentations and financial projections. We have consulted with
Mr. Steve Macdonald, who has vast experience preparing business reports and cases on different Oceania
countries. We have taken Travel and Tourism - Economic Impact 2018 as our reference report which is
prepared by World Travel and Tourism Council. We also have facts checked from UNWTO website. It is
to be noted that most of the recommendations and findings are mostly based on secondary research.

Limitations
All of our findings are based on secondary information since we could not visit the country first hand. It
restricts our findings and so there is a possibility of certain variations from the actual scenario. We have not
occupied in the Fijian culture and have not gotten input from their people about expansion in their country.
This poses a small limitation to our research but we are certain that the margin of error will be minimal.

Criteria
Team the Koalas has established some criteria that need to be favorable before we give a positive
recommendation about the Expansion to Fiji. They include the culture, government, economy, and market
condition. We will research every single one of these criteria and determine whether these criteria are
favorable or unfavorable.
 5

About Fiji
Located in the South Pacific and also consisting more than 300 islands, Fiji is called an islands nation. More
specifically, Fiji is situated in about 3000 kilometers east of Australia and 2000 north of New Zealand in
the area of Oceania. Among all the islands, 110 islands are inhabited. Fiji is currently called as The Republic
of Fiji and was a part of British colony for 90 years until it liberated in 1970 as an independent country. In
this country majority of the people, estimated about 57% are native who are known to all as Melanesian
and Polynesian. The rest of the population are Indo-Fijians which are about 40% living in Fiji.
Among all the islands, there are two main islands and they are Viti Levu and Vanua Levu. The total
population of Fiji is 870000 according to a census completed in 2015. The capital of Fiji, Suva is located
in Viti Levu where majority of the population are living. Other important towns which are very popular to
both citizens and tourists are Nadi and Lautoka. Being a nation in the middle of the Pacific Ocean and
consisting of islands, Fiji is an attractive tourist destination and also Fiji has an abundance of food resources,
minerals and forests which is why it is counted as one of most developed economies among all the Pacific
islands.

History
As per Fijian legend, the extraordinary chief Lutunasobasoba sent his men over the oceans to the new place
where there is Fiji. Most specialists believe that individuals came into the Pacific from Southeast Asia by
means of the Malay Peninsula. Here an extremely advanced society was made by the combined effort of
the Melanesians and the Polynesians before the landing of the Europeans. The European discovered Fiji
accidentally. Dutch explorer, Abel Tasman discovered for the first time in 1643. Later along with the
English navigators, Captain James cook explored in the 18th century by sailing through in 1774.

Captain William Bligh, who sailed through Fiji after the rebellion on the Bounty in 1789, played a
significant role in the disclosure and recording of the islands. The Europeans who arrived Fiji at the earliest
period of 19th century and started living with the Fijians were shipwrecked sailors and runaway convicts
from the Australian penal settlements. In the middle of 19th century, sandalwood dealers and missionaries
arrived. Major economic and political changes have taken place in Fiji in the 20th century. Establishment
of sugar Industry and secondary industries took place. Fiji is now perceived as the central point of South
Pacific. It has a significant impact on regional affairs because of the recent advancements in sea and air
transport and communication.
 6

Geography
In the South Pacific, there are many volcanic islands. These volcanic islands as a whole is the most
beautiful country Fiji. The country is located in the South Pacific, 3000 kilometers (1,875 miles) from
Australia to the East and 1,930 kilometers South to the equator. This country has 322 islands and 105
among them are dangerous and inhabited because tiny coral cays and limestone islets. The largest islands
of this country are-Viti Levu(Great Fiji) ,Venua Levu (Great land of the people) and Tveuni.The largest
river is located on Vita Levu which is Rewa river.There are also thousands of small rivers in Fiji.thee
country’s largest peak is Mr. Victoria which is also located on Viti Lebu at1,322m(4430 ft).Viti Levu is
the lagest island of this country and covers 57% of the country’s land area. The major towns of this
country are –Tavua, Vaileka, Kororvou ,Nasinu ,Nadi. International airport located on Nadi. Vanua Levu
is located to the north of Viti Levu. It covers only 30% of the land area with15% of country’s population.
It has two main towns such as – Labas and Savusavu.

There are low lands on the western portions and main islands are covered and sheltered by mountains.
As a result,dry seasons are favorable to crops Sugarcane is a famous crop of this country. Kadavu Island,
Mamanuca Group and Yasawa Group are the popular tourist destinations.Lomaiviti Group with Levuka
is the former capital of Fiji.This is also the only major town from all the small islands. There are two
outlying regions such as-Rotuma and Cay-Ceva-i- Ra. people are from Rotuma are culturally
conservative with its 2000 people and these people belongs to Polynesia and enjoy relative autonomy.
Majority people of Fiji live on the island coasts or smaller urban centers.
 7

Population
Half of the Fiji population is consisting of Indigenous people; apart from that two-fifths are people of Indian
descent, their descendants came here long time ago to work in the sugar industry. There are also minorities
of Chinese, part-Europeans, and Pacific Islanders who have origins outside Fiji living here for a long period
of time.

According to WoroldDoMeters.info as of December 2018 the population of Fiji is 915,233. Fiji population
is 0.01% of the world population. 54.6% of the population in urban. The median age in Fiji is 27.8 Years.
And the population density in 50 per Km2 (129 people per mi2). Life expectancy in Fiji is 71.3 years (for
both sex). 64.4% people are Christians, 27.9% people are Hindus and only 6.3% people are Muslims.
Population growth rate in 0.74% in the year 2018.
 8

Currency
The currency of Fiji is the Fijian Dollar since 1969. Acc0ording to currency rankings the most popular Fiji
dollar exchange rate is FJD to AUD. The sign of the currency is - “$” and the currency code is –FJD. The
central bank of Fiji is the Reserve Bank of Fiji. The responsibilities of RBF are- control of currency,
currency exchange, issue of currency etc.

Economy
Fiji’s economy is highly dominated by tourism sector which contributes 25% of the overall GDP. Though
primarily their economy is based on tourism they also have a strong agricultural sector which is dominated
by the indigenous farmers. They have a service and light-industrial component serving to other neighboring
countries. Boat manufacturing materials are imported into those neighboring countries. Following a
preferential trade deal with both Australia and New Zealand, Fiji enjoys a great success in the garments
industry as well. In the manufacturing industry the foreign investors helped provide employment for more
than 20,000 local workers which boosted their economy.
 9
In 2017 the Gross Domestic Product (GDP) in Fiji expanded 4.2 percent, from the year 2016 it has grown
.4 percent. The improved scenario was only possible because of the strong economy which has major
contribution from tourism industry, agricultural sector, manufacturing industry, construction industry,
wholesale and retail trade and financial activity sector. The annual growth of GDP in Fiji averaged 2.59
percent from 1971 till 2016. The GDP per capita is 4323 USD. Currently the GDP of Fiji is 5.06 percent.

In 2016 Fiji’s credit bureau suspended operations which eventually made it harder to obtain credit, but the
existing system for starting a business was made less costly and time consuming. Despite having a better
GDP growth in the recent years, Fiji still lags development of an efficient labor market, according to
hertitage.org Fiji has a rigid labor regulation. After the 2016 cyclone the government is still providing
additional funds for rebuilding of road, bridges, water supplies and sanitation.

Business freedom portrays the indicators of the efficiency of government regulation to do business in a
particular country. In case of Fiji the score is 62.8 percent, the points decreased in the recent years. The
current place where the business freedom lies in Fiji is mostly unfree.

Monetary Freedom refers to a combination of price stability with an assessment of price control. The
Fiji government has taken effective measure to encourage foreign investments and eased the process of
doing business with limited capitals. That’s why Fiji lies within the range of moderately free with 74.1%
score in 2018.
 10

Labor Freedom is basically a set of certain components which portrays the overall labor laws, regulations,
legal framework and various legal aspects of a country’s labor market. The regulatory framework includes
minimum wages, minimum hour of working and other things regarding the labor force of a country. Due to
a rigid labor regulations Fiji has seen a significant downfall in the Labor Freedom index currently scoring
70.8 percent which still is moderately free.

Trade is important for any country’s economy, for Fiji it’s extremely important yet the government openness
towards to foreign investment is below average; the combined value of exports and imports equals 110
percent of GDP in Fiji. The average applied tariff rate is 10.6 percent. Foreign exchange controls have been
made easier, but they still limit repatriation of capital and profits.
 11

In case of Trade Freedom Fiji has shown a great improvement in the recent years. In the first part of 21st
century Fiji went through some economic downgrading but they have made it possible to jump into the
ranking in terms of monetary freedom through easing foreign exchange controls, business terms and
business capital issues. Currently their point is 68.8 percent standing almost on the top of moderately free.

On the Investment Freedom index Fiji has shown an increase in the points but still remains on the mostly
unfree zone with 55 percent point; but the progress is promising which indicates future growth in business
with foreign investment. Recently, trade deals with Australia and New Zealand has put some investment on
the Fiji’s economy which boosted up their ranking.

When it comes to the Financial Freedom Fiji has maintained a constant point for almost six years. It shows
Fiji is yet to achieve financial freedom. If we talk about Fiji’s economy it still depends on the foreign aids,
funds and investment rather than building up their own. But this also creates more business opportunities
for foreign companies which can generate profits.
 12

Climate
Fiji’s climate is warm and tropical and there are many beaches in this country. So, this country is perfect
for beachside holidays. Mr. Mark Orr. of MDO Inc. can open good quality hotels in this country. This
country’s maximum temperatures remain 31-degree C (88-degree F) to 26-degree C (79degree F) all the
year. People are having dry weather from March to November and rainy season from December to April.
After deeply analyzing the country, we found that per decade people have faced 15 cyclones and two or
three actually damaged heavily the country. These cyclones occur from November to April and the riskiest
months are January to February. Northwest islands are riskier in these two months. So, Mr. Orr should not
build any hotels in northwest islands.

Fiji also has a wet season and this season is normally from November to April. During this season people
have to face heavy rainfall. Comparatively there is less rainfall in smaller island than main or big islands.
Cyclones are more confined to wet season. The perfect months for holidays for tourists in regards to this
country is March to early December.
 13

Customs and Culture

Fijians are one of the friendliest people according to the tourists’ experience. The local people are always
welcoming towards outsiders and always eager to teach them about Fijian culture and customs. Local
people will help suggest others about any occasions and also suggest dresses for that occasion. There is
always a village chief working as the leader and one must take of his/her hat before meeting him with all
due respect.
Among the cultural programs in Fiji, three are mostly highlighted. They are Lovo, Meke and Yaqona
(Kava).

• Lovo is a campfire type occasion where they make a hole and fill it up with wood and stones.
• Meke is a dance where everyone performs regardless of their status. Here, people tell stories about
the history of Fiji, love, spirits and tales of the islands. Of all the performers, women are seen with
traditional clothes and decorated with flowers, whereas men are seen with warrior outfits with their
weapons.
• Kava is an occasion of drinking their traditional drink where a hierarchy is maintained while drinking.
The name of the drink is Kava itself and it is made from the roots of pepper shrubs which is drank by
the village chief first and passed onto others depending on their hierarchical status.

Coming to the language Fiji’s main official language is Fijian. Other than this there are two more official
languages Fijians use. They are English and Fijian Hindi or Hindustani (both Hindu and Urdu mixed). In
terms of Religion, Fiji is mix of multiple religious based people. Although the majority of the people are
Christianity based, there has never been a religious conflict since 1997 when freedom of religion was
highlighted by the constitution.

In terms of food, Fijians rely on everyone inside their border regardless of race and religion. So, they
have adapted themselves by accepting both types of people’s food. For example, the native people are
well accustomed to the spicy foods and tea culture of Indo-Fijian people. Also, the Indo-Fijian people
have gotten used to the native people’s traditional drink. Between them the common food item is fish as
they have an abundance of fisheries due to their geographical location. Gender roles in Fiji are sometimes
mixed and sometimes traditional. Division of labor are divided according to gender in the traditional
practices where men work as the bread earners and women help the family economy. But in the Ethnic
community men and women both works regardless of the nature of difficulty. In all terms, Fiji is a
multicultural and also multi-racial nation regardless of people’s status.
 14

Tourism Market Overview

Since the 1980s tourism continues to be the major source of economic activity in Fiji surpassing all other
traditional sectors of the economy such as sugar and becoming number one foreign exchange earner.
Though recently Fiji has encountered some natural disasters but the tourism sector has remained relatively
resilient and has continued to grow in steady rate. For instance, in 2001 the tourism industry earning was
463.9 million USD which grew to 1.3 billion USD in 2012. In 2016 the tourism sector earning totaled 1.8
billion USD which is more than 17 times the sugar export earnings which is 103.1 million USD. (Source:
reserve Bank of Fiji)

When it comes to the arrival of visitors Fiji has shown promising growth in the last 20 years rising from a
total of 348,014 in 2001 to 792,320 in 2016. Visitors travelling for holiday purpose is covering up the 75%
of all the tourists. The peak month when the greatest number of visitors arrive in Fiji is in the month of July.

Since the development of the tourism culture in 1920s the main sources of visitors for Fiji are Australia,
New Zealand and US (Pareti, 2015). Over the years this scenario hasn’t changed yet and these countries
provide 72 percent of total visitor arrivals in Fiji. Though the number of visitors has increased from other
countries but still Fiji is highly dependent on these three countries in terms of tourism. Downgrading of
these three economies will have larger negative impacts on visitor arrivals to Fiji.
 15

Visitor Arrivals Source Markets (Fiji Bureau of Statistics)

If we talk about the short haul tourist market then Australia and New Zealand will be on top. With a
convenient geographic location, it’s easier for the visitors from Australia and New Zealand to travel to Fiji
within 3 to 5 hours of flight. To make the best use of this opportunity, Fiji airways has expanded its service
for their largest market Australia offering in total 29 weekly return flights with more than 5,500 weekly
seats. For New Zealand the number is 19 weekly return flights with approximately 3,200 weekly seats.
 16

When it comes to long haul markets US has remained the top country but this sector has become volatile
for the long-haul markets due to expensive airfares to longer distance travel, the opportunity costs
associated with time and convenience of travel. Apart from US for other countries the number of visitors
is steadily declining. In 2016 the number of Indian visitors were 3,987 while it was only 1,836 in 2010;
however, it still stands for less than one percent of total visitor arrivals to Fiji.

Though in 90s Japan was becoming the major source in Fiji’s tourism but due to the Global Financial
Crisis (GFC) the number of visitors declined in 2008 and 2009; however, the recommencement of flights
to Japan through Narita has somewhat boosted Fiji’s tourism in regards to long haul markets. Due to GFC
visitors from Canada and US started to decline in 2008 to 2010 but right now the scenario is improving
and introduction of new flights have made it possible for the visitors from US and Canada to travel more
conveniently. Fiji also have shown commitment towards development and recovering from the odds.
Even after Category 5 Tropical Cyclone Winston and floods in 2016, Fiji has recovered quickly and since
then visitor arrivals increased by 5.0 percent to a record high of 792,320. During this period the earning
also hit a record 1.8 billion USD.
 17

Hotel Market Overview

The room occupancy in Fiji’s hotels and tourist accommodation has slightly increased in 2015; currently
the number is 51.3% during the second quarter of the year. From the previous year, it increased by 1%. In
the year 2016 the rate went up to 52.4% according to FBC News Fiji. The Fiji Bureau of Statistics issued a
report stated that out of the 882,916 hotel rooms available in Fiji during the first quarter of 2017, 406,471
rooms were sold earning overall takings of $179.4 million. Number of rooms available increased by 3.5%,
number of available beds increased 1.1%, number of beds sold increased 3.1%, sale of food, takings from
accommodation, liquor, telephone and other charges increased by 6.4% to 179.4 million USD.

In second quarter of 2018 out of 981,430 rooms 515,424 rooms were sold; 2,206,207 beds were available,
1,063,644 beds were sold, overall taking was 284.5 million USD. Rooms Availability increased by 3.1%
(29,367), selling of rooms increased by 5.5% (26,981). hotel and resort room Occupancy Rate increased by
1.2% points to 52.5%, beds Available increased by 1.0% (21,987), selling of beds increased by 2.0%
(20,644), occupancy rate of bed increased by 0.4% points to 48.2%. Takings from Accommodation, Sales
of Food, Liquor, Telephone and other miscellaneous Charges totaled $284.5 million, an increase of 3.5%.
(Fiji Bureau of Statistics)
 18

Starting Tourism Business in Fiji

To set up the business in Fiji MDO Inc. needs to obtain some permissions from the following agencies.
This for starting a business in Fiji and investing in Fiji.

Registering for the reservation of the www.egov.gov.fj

company or business name
Obtaining Investment Registration Certificate www.investmentfiji.org.fj
Registration of the company or business name www.egov.gov.fj
registration for tax and VAT www.frca.org.fj
Obtaining work permit for immigration www.immigration.gov.fj
Shares and partnerships issues www.rbf.gov.fj
Business license for particular area www.fnpf.com.fj
Employer and employee registration www.fnpf.com.fj

As MDO Inc. will be a new company/industry in Fiji - so they need to fulfill some requirements before
they start their business here. Below those requirements are being enlisted:

1. An application form should be obtained from the web-link to apply for the business,
http://www.investmentfiji.org.fj/pages.cfm/for-nvestors/forms-1/
Application fee of FJD $2,725.00.

2. If the business is being enlisted as a shareholder, the below items should be attached:
- A certified and notary copy of the Certificate of Incorporation;
- Other supporting documents and
- Names of those who are associated with the business
 19

3. A copy of the Shareholders Agreement and a copy of the Shareholders’ Declaration, are to be
submitted if local equity contribution is required;

4. A business plan covering the budget and cash flow projection for the proposed project;

5. Submitting copies of agreements such as the lease agreement, trust deed, contract agreement and
purchase agreement etc. and other relevant documents if requested

6. agreement, trust deed, contract agreement and purchase agreement etc. and other relevant
documents if requested

As it will be a hotel business, MDO Inc requires land to expand their business - there are three types
of land in Fiji:

1. Freehold property: Which can be bought in any part of Fiji. About 8% lands in Fiji are
freehold;

2. Native land: Which can never be owned but can be leased. The period of leased land in
usually 99 years and monitored by the TLTB;

3. Crown land: Which is owned by the Government of Fiji and can be leased directly from the
government in certain areas of Fiji.
 20

Competition in the Industry

Fiji is located at the center of South Pacific having 333 tropical islands full of hotels and tourism
attractions. There are more than 400 licensed hotels, which served 842884 visitors last year. Fiji is
well known for its luxurious private islands and top-notch spa. There are Tides Reach Resort in Matei,
Taveuni Island; Vomo Island Hotel in Vomo Island; Grand Pacific Hotel in Suva, Viti Levu; Beqa
Lagoon Resort Pacific Harbour, Viti Levu; Qamea Resort & Spa Qamea Island; Six Senses Fiji in
Malolo; First Landing Beach Resort & Villas Lautoka, Viti Levu; Paradise Cove Naukacuvu Island,
Yasawa Islands in Fiji.

Outrigger Fiji Beach Resort in Viti Levu and Castaway Island, Fiji in the Castaway Islands are two of
the most popular five-star hotels in Fiji. Top Luxury Fiji Hotels include Hilton Fiji Beach Resort and
Spa, Sheraton Fiji Resort in Denarau Island, Nadi; Radisson Blue Resort Fiji Denarau Island in Resort
Drive, Nadi; Sofitel Fiji Resort and Spa at Beachfront, Nadi etc. Top budget Fiji hotels include Tropic
of Capricorn-Hostel in 11 Wasa Wasa Road, Nadi; Wailoaloa Beach Resort Fiji in New Town Road,
Nadi Bay, Wailoaloa, Nadi; Aquarius on the Beach at 17 Wasa Wasa Road, Nadi; Club Fiji Resort in
Nadi Bay Beach, Viti Levu Nadi etc. Best hotels acoording to some online hotel sites are Fiji Mariott
Resort Mimi Bay at Savu Savu Road, Momi Bay, Momi; Toka Toka Resort Hotel at Queens Highway,
Nadi etc.

There are 114 Hotels in Nadi, Fiji, 27 Hotels in Mamanuca Islands, 43 Hotels in Suva, 35 Hotels in
Coral Coast, 30 Hotels in Yasawa Islands, 13 Hotels in Pacific Harbour, 32 Hotels in Taveuni, 11
Hotels in Lautoka, 3 Hotels in Beqa Island and some other hotels in other places of Fiji.

Top destinations for Fiji city trips are Nadi, Suva, Labasa, Lautoka ets which are popular for relaxation,
entertainment, friendly locals, shopping, markets, alternative cultures and beaches. Popular islands
include Mamanuca Islands, Viti Levu, Yasawa Islands, Taveuni etc. It is prominent that competiton in
the hotel and tourism industry of Fiji is very high. As this industry is a growing industry, there are
chances to establish more hotels in tourists’ spots and this is a very lucrative and attractive industry.
 21

Marketing
For MDO Inc.’s hotel expansion their target segment will be international customers, not the local
ones. The promotion will be done through travel agencies all over the world and one or two
representatives will be assigned in the travel agencies. MDO Inc. will try to cover most of the
countries. The main targeted countries will be Australia and New Zealand. For advertisement
promotion we will make video ads, and also, we will use YouTubers for making Vlogs. Since
promoting in social media has revolutionized in recent years, these promotional Vlogs will cover a
huge amount of customer segments.

Conclusion and Recommendation

Considering all the factors and data analyzing it is pretty clear that the best option for MDO Inc.’s
hotel chain expansion in a foreign country is Fiji. Fiji’s Hotel and Tourism industry is one of the
most rapidly growing and it will be a great opportunity for the company to take the hotel chain to
another level. Given the growth this industry has shown in last couple of years, it will not take much
time for MDO to breakeven.

There are some recommendations that MDO needs to fulfil before going into business inn Fiji:

• MDO needs to be aware of all the business policies that Fiji has before going into business. They
need to study the policies very well, even if it takes time;

• In case of promotion, they need to follow all the marketing strategies that have been discussed
previously in this report;

• While hiring they need to keep that in mind that there can’t be any sort of biased;

• They have to be respectful towards the Fijian culture and the cultures and backgrounds of their
employees.
 22

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