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Killing the golden goose

High taxes threaten tourism

HIGH taxes and service charges have pushed Fiji’s major revenue generator into the more expensive destinations for tourists. With VAT increasing from 5 to 10 per cent and Service Turnover Tax reducing from 10 to six per cent and Departure Taxes at $200 per passenger, what was once a popular choice for New Zealanders and Australians may soon be out of reach for families.

And families are the key to the success of tourism in Fiji. Hoteliers have been forced to find creative ways to sell their destination and product in a very competitive market where technology has had a major impact on how companies reaching out to their customers.

The Fiji Hotel and Tourism Association has lobbied government not to tax the only industry that it claims actively and positively addresses environmental issues through pro-active self-funded programs. During a media workshop organized by the association in Suva last month, participants discussed the need to reduce the tax levied on the industry. Instead, tourism operators want the same taxes spread across industries which impacted the environment. These taxes would be collected and used to fund environment protection programs.

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