Deputy Prime Minister Viliame Gavoka has put tourism at the centre of the government’s short‑term economic strategy, saying the sector now accounts for more than 40 percent of Fiji’s gross domestic product and is the quickest source of foreign exchange to pay for rising import bills. Gavoka made the remarks during an interview in Nadi yesterday, and linked the government’s sharpened focus on tourism to the recent reactivation of the Tourism Action Group (TAG).
“Let’s remember that tourism is now more than 40 per cent of GDP, and is the economic lifeline to the country,” Gavoka told journalists. He warned that import prices may increase and said the “only sure way of securing foreign exchange immediately is tourism,” while acknowledging that other industries would also contribute to recovery over time. The deputy prime minister said the government was concentrating on tourism “to help drive the economy and save the country over the next couple of months or so.”
The Tourism Action Group, a national body that is convened when Fiji faces an escalating crisis, was cited by Gavoka as part of the government’s immediate response. Reactivating TAG signals an urgent, coordinated push between government and industry to protect visitor flows and the revenue they generate, officials say, though Gavoka did not outline specific TAG measures in yesterday’s interview.
The comments build on a series of government measures aimed at supporting tourism investment and capacity. In last year’s budget, Finance Minister Prof Biman Prasad extended the Short Life Investment Package (SLIP) tax holiday to encourage significant hotel purchases, extensions and refurbishments — a policy designed to entice the kind of private investment that could quickly boost room capacity and attract higher‑yield visitors. Nadi, as Fiji’s main international gateway, remains pivotal to those efforts.
Industry stakeholders have long warned that tourism’s outsized role makes the economy vulnerable to external shocks — from global price shifts to travel disruptions — but Gavoka stressed the sector’s unique ability to deliver immediate foreign exchange. His comments underscore the government’s view that short‑term stabilisation of import financing and foreign reserves will depend heavily on restoring and expanding visitor arrivals in the coming weeks.
The reactivation of TAG and the renewed emphasis on tourism mark the latest development in an evolving policy mix that combines incentives for investment with crisis‑management coordination. With officials publicly acknowledging a time‑bound focus “over the next couple of months,” attention will turn to what concrete measures follow: marketing pushes, flight and connectivity arrangements, or operational support for hotels and tour operators aimed at accelerating the inflow of foreign currency.
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