5 May 2015

Proposed 'tourism tax' in Fiji talked down

9:28 am on 5 May 2015

Investment Fiji has rejected a proposal to implement a service fee to supplement the income of tourism industry workers.

An opposition MP Bill Gavoka, himself a former Tourism Fiji Chief Executive, proposed a five percent fee, but it has been met with criticism from the President of the Fiji Hotel and Tourism Association, Dixon Seeto.

Poolside view at the Sheraton in Fiji

Poolside view at the Sheraton in Fiji Photo: Fiji Government

Now, the CEO of Investment Fiji, Godo Muller-Teut, has told the Parliamentary Standing Committee on Economic Affairs the fee would adversely impact the affordability of Fiji as a tourism destination.

Mr Muller-Teut says it would decrease visitor numbers which in turn could lead to reduced investment and future unemployment.

He said Fiji is already an expensive destination with a Service Turnover Tax of five percent and a two hundred Fiji dollar Airport departure tax.