Riya Mala 
[Photo: FILE]
Fiji’s tourism industry could face serious risks if Fiji Airways is not supported during the current financial crisis.
Deputy Prime Minister and Minister for Tourism and Civil Aviation Viliame Gavoka says the new five per cent Tourism Services Turnover Tax is a necessary measure to help the national airline continue operating at full capacity.
Gavoka says Fiji Airways plays a vital role in bringing visitors to the country, and without a strong national airline, thousands of tourist bookings could be under threat.
He stresses that supporting Fiji Airways is not the responsibility of the tourism industry alone.
“The future of the industry is dependent on Fiji Airways, and this year there’s a lot of bookings in the system for most of the hoteliers. If Fiji Airways does not come up and perform at its full capacity, all those bookings are questionable. They are under threat. So we want Fiji Airways to continue to function at its full capacity, and this is the way to do it, and the government is committed to this. It has been tabled in Parliament, and it’s only for 12 months from September. It’s not going to be forever.”
Gavoka says the Civil Aviation Authority of Fiji, Fiji Airports, the Airport Development Authority, and the government are all contributing to keep the airline operating.
While acknowledging that some accommodation providers are unhappy with the new tax, Gavoka says he believes there is no alternative.
He says protecting Fiji Airways means protecting tourism, jobs, and businesses that depend on visitor arrivals.
The new five per cent Tourism Services Turnover Tax will take effect in September and will remain in place for 12 months as part of their plan to support Fiji Airways through the current crisis.
