Fiji tourism industry disputes implementation of new travel tax

The Fiji Hotel and Tourism Association (FHTA) has rejected government claims that the industry is attempting to sabotage the new 5% Tourism Services Tax. The association clarified that its opposition is not directed at the tax itself or the goal of supporting Fiji Airways, but rather at the implementation method regarding existing bookings.

FHTA Chief Executive Fantasha Lockington stated that the primary concern is consumer fairness. The association argues that travelers who booked and paid for holidays before the tax was announced are now being charged an additional fee. Lockington noted that while exemptions for existing bookings were initially discussed during consultations, this assurance was reportedly overturned in the final legislation.

Industry representatives warn that the current policy may lead to cancellations, with at least one instance of a group rebooking elsewhere due to the extra cost. The FHTA is calling for an exemption for all bookings made and paid for prior to the tax announcement to ensure transparency and protect the tourism sector.