Pacific / Fiji

Proposed 'tourism tax' in Fiji talked down

09:28 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 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.