THE future of the tourism industry is dependent on Fiji Airways, says Deputy Prime Minister and Minister for Tourism and Civil Aviation Viliame Gavoka.
In an interview in Nadi yesterday Mr Gavoka said Government supported the 5 per cent Tourism Services Tax which was announced in the 2026-2027 National Budget to strengthen the national airline.
“The 5 per cent tax is something that we have to do,” he said.
“Fiji Airways had clearly laid its position to the industry and to Government.
“And we know how important Fiji Airways is to tourism and to Fiji.
“The 5 per cent tax is something that we have to do to help Fiji Airways during this difficult time. It’s a crisis.”
Mr Gavoka said the Government has ways within its means to help Fiji Airways in making profits.
“So, the industry is going to kick in 5 per cent with turnover tax, Civil Aviation Authority of Fiji (CAAF) is doing its bid and Fiji Airports is doing its bid, Air Terminal Services (ATS) is doing its bid.
“Government is guaranteeing loans and so it is a whole of Fiji effort to prop up Fiji Airways.”
He acknowledged that there were tourism operators who had opposed the move and were not consulted prior to the announcement last week.
“Yes, there are segments of the accommodation sector that is unhappy.
“But we believe and we know it has to be done.
“The future of the industry is dependent on Fiji Airways and this year there is a lot of bookings in the system for most of the hoteliers.
“If Fiji Airways does not perform at its full capacity, all those bookings are questionable and they are under threat.
“So, we want Fiji Airways to continue to function with its full capacity and this is a way to do it. And government is committed to this.
“It has been tabled in Parliament and its only for 12 months from September and it’s not going to be forever; it will be ring-fenced.”
