The direction Dialogue Fiji has taken in welcoming the Government’s decision to introduce a temporary 5 per cent Tourism Services Tax to support Fiji Airways will no doubt attract attention.
While it endorses the move, it is also calling for a safeguard, urging Government to ensure the money collected is legally protected from being diverted to any other purpose.
Its executive director, Nilesh Lal, argues that Fiji Airways is a strategic national asset whose strength is important to our tourism-dependent economy.
With tourism generating close to $3billion a year, he maintains we cannot afford to see the national carrier weakened. Fiji Airways, he says, remains the backbone of the industry that keeps the economy moving.
Dialogue Fiji supports Government’s commitment to ring-fence the proceeds of the tax. However, it believes that commitment should not rest on policy alone. Parliament should legislate the protection so every dollar collected is directed towards strengthening Fiji Airways or investing in initiatives that reinforce the tourism sector.
We reflect on that argument. Tourism is the engine of our economy. It supports thousands of jobs, sustains countless small businesses, generates foreign exchange and creates opportunities that reach communities across the country. Protecting the sector means protecting livelihoods.
As we look ahead, attention is also turning to the ambitious visitor arrival targets that have been set for the years ahead.
ANZ Group senior Pacific economist Dr Kishti Sen believes Fiji’s existing infrastructure is capable of accommodating one million visitors annually without placing undue strain on services or diminishing tourism returns. He notes that the country has averaged more than 966,000 visitors each year between 2023 and 2025, leaving it only a short distance from the one-million mark.
So, looking ahead, Fiji is targeting 1.25 million visitor arrivals by 2027 and between two and three million by 2034. Achieving those numbers, while maintaining occupancy rates around 80 per cent, would help preserve industry yields while easing pressure on accommodation, infrastructure and the workforce.
Those goals, however, cannot be achieved by the tourism industry alone.
We say success will also depend on the strength of the sectors that support it. Security must remain a priority as authorities intensify the fight against drugs for instance.
Public health challenges, including rising HIV infections, must be addressed with urgency.
Reliable infrastructure, efficient transport and quality public services all contribute to the visitor experience and our international reputation.
Tourism is the cornerstone of our national economy. And we say every investment that strengthens it, every safeguard that protects it and every policy that supports its sustainable growth is an investment in our future. It should guide our national priorities!
