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Prime Minister Helen Clark has ruled out banning Fiji from the Wellington Rugby Sevens in February.
The Government slapped a ban on sporting contacts after the military coup in Fiji, but said international events would be exempt.
Last week two political parties, United Future and the Greens, called for Fiji to be banned from the sevens.
Clark said today banning Fiji would mean New Zealand losing its round of the international tournament.
"There would be massive damage to Wellington, this is the single biggest event that Wellington hosts in a year as far as I'm aware," she said on TV One's Breakfast programme.
The Government has banned high-level political contact with Fiji, its soldiers are not being allowed to visit New Zealand and aid has been frozen.
Miss Clark said there were other possibilities, but Fiji's military were not listening to international opinion.
"There have been clear messages, the Commonwealth, the UN, the European Union, the US, south Africa...people have thundered against this coup but right now they're not listening," she said.
However, Helen Clark said Fiji was starting to feel the impact of the coup.
"Tourist numbers are right down, businesses are not making money, that all hurts," she said.
"And the military itself seems to be having trouble because the Ministry of Finance isn't co-operating."
- NZPA
