Fiji invites tenders for first casino

The invitation to gaming companies will be a litmus test for international investor confidence in the nation, where the economy has faltered since a military coup in 2006 led by current Prime Minister Voreqe Bainimarama.

Sayed-Khaiyum said there were obvious economic benefits from a casino development, which could create jobs and raise additional revenue for the government. He did not give a timeline for the casino, saying Fiji was looking for reputable international gaming operators to develop a casino that would increase leisure activities in the country.

"At the same time we do not want to harm Fiji's tourism brand, which the government and the people of Fiji have invested so much in," Sayed-Khaiyum said in a statement. He said laws would be put in place to minimise possible negative social impact from the casino, citing Malaysia and Singapore as countries where such protective mechanisms had been successfully installed.

Tourism is Fiji's major export earner following a decline in its former economic mainstay, the sugar industry. More than 540,000 international visitors, 65 % of them from Australia and New Zealand, flocked to the island nation's famed white sandy beaches last year, according to official data.

The World Bank this month said Fiji's economy was expected to grow 0.5-1 % in 2010, only partially recovering from a 3 % contraction last year. It said Fiji's public debt, including state-owned enterprises, was about 67 % of gross domestic product and government revenues this year were likely to fall below budget forecasts.

The non-profit organisation International Budget Partnership this week ranked Fiji bottom in a survey of budget transparency covering 94 countries, saying publicly-available information on government accounts was inadequate.