26 Aug 2009

Attitude in Fiji a factor in Denarau resort's imminent receivership

12:45 pm on 26 August 2009

Another partially completed Fiji tourism resort is under threat of collapse with the developer struggling to obtain financing.

Neville Mahon of Lausanne Project Management in Auckland says parts of the Fiji Beach Resort and Spa, which is set to cost about 200 million US dollars, have been in operation for several years.

But he says attempts since last year to secure another 10 million US dollars to complete the project have been fruitless.

Mr Mahon says the companies he is dealing with are struggling to access more money and he is warning receivership is imminent.

He says lenders are nervous about investing in Fiji, though he says the problems are not entirely down to the uncertainty created by the coup nearly three years ago.

"Not all of it. I don't necessarily think that, I think when you look at Fiji and you look at the way that tourism is going and occupancies are going in Fiji, they are going exceeding well, as a matter of fact. I don't think it has got too much to do with that. If anything it has more to do with the attitude of Fiji, rather than the reality of Fiji."

Another troubled incomplete project, Momi Resort, was yesterday (tuesday) passed in at an auction forced by the Fiji National Provident Fund.