[File Photo]
Fiji’s tourism growth faces limits unless infrastructure and workforce challenges are addressed. Tax incentives alone will not sustain the sector.
Speaking at the third Fiji Tourism Convention, Permanent Secretary for Finance Shiri Gounder said strong growth over the past decade was at risk without coordinated action across government assets, infrastructure, and labour supply.
Tourism arrivals have risen 30 per cent since 2015, while earnings grew nearly 50 percent, from $1.6 billion to $2.6 billion.
The sector contributes more than 40 percent of national economic output and supports close to 10 percent of employment.
Gounder explained that government investments in Fiji Airways, Airports Fiji Limited, and air traffic services rely on higher visitor volumes to generate returns.
“We need to balance several delicate objectives, including making sure that we are getting our revenues out of industries like tourism, very carefully balancing the need to support investments in the tourism sector, also very carefully making sure that we don’t make the industry uncompetitive.”
Investment Fiji Chief Executive Kamal Chetty states investors are focusing on efficiency rather than tax incentives.
He said they aim to reduce initial costs when investing in Fiji.
“Globally, incentives are no longer only about profits. Cost reduction and operational efficiency are now key.”
Chetty said future policies would prioritise agency coordination and faster project delivery.
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Shania Shayal Prasad 