Riya Bhagwan 
[Photo: FILE]
The Tourism Action Group has defended the temporary Tourism Services Tax, saying it was introduced to protect air connectivity and safeguard the country’s tourism-driven economy.
The group says the measure was part of a wider response to rising global aviation fuel costs and disruptions affecting international airline operations.
TAG says Fiji Airways came under significant financial pressure during the fuel price surge, raising concerns about its ability to maintain full international flight schedules.
It says any reduction in air capacity would have had major flow-on effects for hotels, transport operators, restaurants, and thousands of tourism-dependent businesses.
The group also pointed to regional capacity cuts, including reductions on Fiji routes by Air New Zealand, as evidence of wider industry adjustments.
TAG says discussions involving government, airlines, and tourism stakeholders explored several options, including tax changes and financial support measures.
It says the temporary levy was part of a broader package aimed at maintaining Fiji’s international connectivity during the crisis.
The group maintains the decision was collaborative rather than imposed by a single party.
TAG is now calling for transparency in how the levy funds are managed and reported to ensure accountability to the public and industry.
It says Fiji Airways’ previous management of COVID-era tourism support funding demonstrates capacity for proper oversight.
The group says protecting air connectivity remains critical, as Fiji Airways carries the majority of international visitors to the country.
