ANY support for Fiji Airways must be national and transparent.
The Fiji Hotel and Tourism Association said the industry did not propose, endorse, or broadly agree to the Government’s five per cent Tourism Services Tax or Service Turnover Tax.
Chief Executive Officer Fantasha Lockington made the comment after the national budget was presented in Parliament.
“Any suggestion that the tourism industry agreed to this measure is misleading. A few representatives may have expressed support in isolated discussions, but they do not represent the wider industry,’’ Lockington said.
“The overwhelming majority of FHTA members strongly oppose the tax in its current form and the lack of consultation before its announcement.’’
On budgetary support for Fiji Airways, Lockington said that while the airline was central to Fiji’s connectivity, any help for the carrier must be funded through a national fiscal response.
The FHTA stressed that the five per cent Tourism Service Tax could cause disputes, cancellations, destination and brand reputational damage or margin loss.
“The industry does not agree to absorb this turnover tax, and indications from members suggest the majority, if not all, will pass it on in its entirety,’’ Lockington said.
She warned that adding a five per cent charge to the current 12.5 per cent VAT would place a 17.5 per cent tax burden on affected tourism services. Fiji also charges a $200 departure tax. Lockington said the combined costs undermined Fiji’s competitiveness against other destinations.
