The man with his hands on the tiller of the Fijian economy, Aiyaz Sayed-Khaiyum, has always been a great admirer of Gough Whitlam’s “crash through or crash” approach to leadership and never more so than with the F$3.67 billion budget he announced on Friday night.

Allowing for a sobering 21.7 percent contraction of the economy, the budget provides for a $2 billion deficit and takes government debt to $8.2 billion, a debt-to-GDP ratio of 83.4 percent compared to the 53 percent the government inherited when it took office in 2006.

With the collapse of the celebrated “Bainimarama Boom” that the Attorney-General trumpeted just a year ago, he is using foreign loans for a massive stimulus effort to try to dig Fiji out of the covid crisis, including tax cuts and the abolition or reduction of a raft of government charges.

READ MORE: Fiji announces $3.67bn budget

Whether the private sector and the rest of the community responds remains to be seen.

But it amounts to a massive gamble because any overall recovery is specifically predicated on the resuscitation of Fiji’s biggest revenue earner – tourism – through a Pacific Bula Bubble with Australia and New Zealand.

We know the Attorney-General is betting everything on the Bubble happening this year because the Reserve Bank is predicting a post-covid revival of 14.1 percent economic growth next year specifically on the assumption that visitors will return in numbers before then.

The unspoken aspect of the debate around the budget is the fate of the national carrier, Fiji Airways, that has been given half a billion dollars worth of government loan guarantees to keep it afloat and is also banking on being back in the air by the end of the year.

Saving the Fijian economy
Will there be sufficient bums on aircraft seats and bodies in hotel beds by Christmas to save the Fijian economy and its national airline?

The country lives in hope but with the covid pandemic raging in the two most populous Australian states and the NZ government reluctant to institute its own bubble, the average Fijian wouldn’t want to bet their bure on it.

An estimated 115,000 people have already lost their jobs in the private sector but foreign loans are so far keeping the country’s 27,000 civil servants at work, with pay cuts at the top of government but no job losses in the public sector.

Civil servants are now the backbone of the general economy, with everyone else relying on them to “spend, spend, spend”, though with money that Fiji doesn’t have and loans that will have to be repaid.

Crash through or crash it is.

Graham Davis spent six years as the Fijian government’s principal communications adviser from 2012 to 2018. He also worked on Fiji’s global climate and oceans campaign, including its presidency of COP23.

Article by AsiaPacificReport.nz

Prime Minister Voreqe Bainimarama says while Australia and New Zealand work out their Trans-Tasman bubble, Fiji’s equal greater success against the Pacific nation into a position to take the lead among island states, reports FBC News.

The Prime Minister revealed that Fiji was working on its own bubble – a “Bula Bubble”, between Fiji, New Zealand, and Australia.

But he made no mention of the rise in covid-19 cases in both Australia – 27 new cases in the past 24 hours – and New Zealand – two in the last 24 hours, taking the number of ac tive cases to seven after 28 “covid-free” days with no new cases.

READ MORE: Al Jazeera coronavirus live updates – Brazil death toll nears 50,000

FBC News deputy manager Ritika Pratap reports that Bainimarama said:

“Working with Fiji Airways and Tourism Fiji, we’ll be welcoming Aussies and Kiwis to holiday in Fiji in a manner that is carefully controlled and safely insulated.

– Partner –

“Everywhere they go will be wholly dedicated to others who match the same criteria, safely guided by what we’re calling ‘VIP lanes’ allowing them to Vacation In Paradise.”

However, the Prime Minister highlighted that to come to Fiji, Australian and New Zealand tourists would have to follow some protocols.

He highlighted that intending travellers must present a certificate from a recognised medical institution certifying their 14 days of quarantine in their home country, along with proof of a negative covid-19 test result within 48 hours of their departure for Fiji.

He said at this point they could immediately start their “Bula Bubble” holiday within confined VIP lanes.

“They can complete 14 days of quarantine at their own cost in a Fijian Government-designated quarantine centre or a hotel of their choosing, after which a negative covid-19 test can clear them to start their “Bula Bubble” vacation.”

He said this Bula Bubble would allow Aussies and Kiwis to once again enjoy the best of Fiji while remaining separate from any other travellers and the general public.

“To be clear, any tourist who comes to Fiji on these terms still won’t be able to move freely throughout the country. All of their movement will be contained within the VIP lanes, starting on the airplane, then from the Nadi Airport onto designated transport to their designated resort or hotel, where they’ll remain throughout their stay.”

Identifying isolated resorts
The Prime Minister said Fiji was currently identifying geographically-isolated resorts that were the best fit for the “Bula Bubble”.

Fiji Airways, in collaboration with Tourism Fiji and the Ministry of Commerce, Trade, Tourism and Transport would announce more details in due course.

RNZ News reports there have been two new cases of covid-19 detected in New Zealand today, both in isolation.

One of the new cases is the child of the couple who tested positive yesterday, and the other is a 59-year-old woman who travelled from Delhi.

The Ministry of Health said in a statement they would not provide the exact age of the child who arrived with its parents from India, but it was under two years old.

“We are pleased to report that all family members are doing well at the Jet Park Hotel, the quarantine facility in Auckland.”

The second case arrived in Auckland on 15 June on flight AI1316.

Seven active cases in NZ
There are now seven active cases in New Zealand.

The total number of confirmed cases is 1161. The combined total of confirmed and probable cases is 1511.

RNZ News also reports that Auckland’s covid-19 isolation facilities have reached capacity, with 4272 New Zealanders in managed isolation and almost 900 more expected to arrive in the country in the next two days.

Article by AsiaPacificReport.nz