Dialogue Fiji has welcomed the Government’s decision to introduce a temporary 5 per cent Tourism Services Tax to support Fiji Airways but is urging Government to ensure the funds are legally protected from being used for any other purpose.
Executive director Nilesh Lal said Fiji Airways remained a critical national asset and warned that any weakening of the national carrier would have serious consequences for the country’s tourism-driven economy.
“Tourism is the one sector currently keeping Fiji’s constrained economy afloat, with earnings of almost $3 billion annually,” Mr Lal said.
“That is precisely why we cannot afford to allow Fiji Airways to fail.
“The national airline is just too important an asset for the country to be jeopardised. It is the backbone of our tourism industry.”
While welcoming the Government’s commitment to ring-fence the proceeds of the tax, Mr Lal said the safeguard must be backed by legislation rather than policy alone.
Mr Lal said Parliament should legislate to ensure every dollar raised is used to support Fiji Airways, or initiatives that strengthen the tourism industry.
