Liberal laws boost rental car industry

THF rental car industry has bal looned in the past few years, with a plethora of local companies en tering the market. From a handful of companies, including three major inter national rental car organisations, there are now over 15 companies offering a range of vehicles at a range of prices.

The increase in local companies fol lowed Government liberalisation of per mits which brought second-hand and re conditioned cars onto the market. They fill a market niche by catering to the “walk-in” tourist with a very limited budget, and have generated intense com petition which benefits the travelling

public with cheaper prices.

The international and larger local companies which run new cars, with sub sequent higher costs, have also recorded a steady increase in custom, including the established market from pre bookings, where tourists know the com panies and their standards, a factor local companies cannot compete with. These companies are also benefiting from over

seas marketing.

The range of vehicles requested is wide-ranging, from small economical

sedans to large family and luxury cars.

By tapping into the growth in the leisure market, there has been an upsurge in 4x4 softtops which give people some thing different and exciting to drive while on holiday.

The demand for corporate car hire for both short and long-term lease has also increased, as has local demand, a factor of cheaper prices and more money in the economy. The owner of one of Fiji’s first rental car companies, Gulab Khan, said the industry has shown as much as 30 per cent increase in the last two years* One of the major issues affecting the industry at present is the use of the second-hand and reconditioned cars from Japan. As part of its policy to im prove the quality of cars, the Govern ment announced earlier this year that all future rental cars must be new.

However, there seems to be conflicting advice from industry, with some oper ators saying reconditioned cars are still being registered; one company intends doubling its fleet by the end of the year.

They claim that with industry competi

tion so intense, the cars have to be good

quality despite being second hand.

The Manager of Rosie Tours, which runs Thrifty in Fiji, Vivek Mudaliar, said quality control was not just a factor of new cars, but monitoring their road worthiness more closely. He said the in dustry should continue to grow as long as the quality of cars was maintained.

A major concern of all operators are traffic hazards on the roads, particularly

road humps in villages and potholes,

domestic animals on the road and the amount of loose stone left on roads by workers. Although the hazards have been discussed at past tourism conven tions and resolutions taken to Govern ment, operators claim nothing has changed and, if anything, the situation has worsened. Thrifty now advises clients about the hazards and warns not to drive at night.

The General Manager of Avis in Fiji, Bryan Watson, said the number of acci dents was worrying, with policing a ma jor problem. Accidents resulted from poor police supervision, poor roads, too much traffic, poor street signs, very poor drivers and very bad maintenance of vehicles. 1 Q