The paper identifies and analyses challenges and issues facing the
tourism industry in the most developed South Pacific island state,
the Fiji Islands. Many of the chalenges identified can be attributed
to the interplay among historical factors and events, and the vested
interests associated with them. The colonization of Fiji, the historical
role of foreign capital in its growth and development, the conflicting
socio-economic and political demands of the two major ethnic groups
(the indigenous Fijians and immigrant Indo-Fijians), the issue of
property rights, and more recently the coups of 1987 and 2000 and
the resultant political instability are discussed in relation to the
growth and development of the tourism industry. The author also
discusses the impact of the coups on the tourism industry and the
role of private–public partnerships in the industry’s recovery following
the coups.