Stakeholder perceptions of the impacts of aviation subsidies in the South Pacific Region

Abstract

This study examines the impacts of aviation subsidy programmes in the South Pacific Region (SPR). Interviews and thematic analysis were conducted to understand the perspectives of key stakeholders of aviation subsidies in the SPR. It was found that SPR countries are heavily reliant on aviation subsidies for the development and sustainability of their aviation industries. Aviation subsidy programmes are nevertheless subject to political influence and misuse. It is well recognised that aviation subsidy programmes in the SPR facilitate airfare affordability, flight accessibility and service sustainability. They may also positively impact tourism development, social wellbeing and economic wellbeing in SPR countries, but adversely impact the region's environmental wellbeing. Our findings suggest that formal aviation subsidy frameworks (i.e. customized, environmentally friendly) should be established for SPR countries, possibly in a similar vein to those used in developed markets. Generally, the adverse impacts of COVID-19 on aviation, tourism and economic development in the SPR call for a collective, regional and cross-sectional approach to help SPR countries recover from the COVID-19 pandemic.