Fiji Tourism Body Rejects 'Sabotage' Claims Over New Tax

The Fiji Hotel and Tourism Association (FHTA) has refuted government assertions that the tourism industry is employing delaying tactics or risking sabotage of the new Tourism Services Tax. The association clarified that its objections are not aimed at opposing support for Fiji Airways, but rather at the manner in which the new five percent tax is being applied to existing bookings.

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The Association says visitors who booked and, in some cases, fully paid for their holidays before the tax was announced are now being asked to pay an additional charge.

According to FHTA Chief Executive Fantasha Lockington, visitors who had already booked, and in some cases fully paid, for their holidays before the tax was introduced are now being presented with additional charges. Lockington emphasized that the core issue revolves around consumer fairness and assurances provided by the government during consultations.

Lockington revealed that FHTA had specifically requested an exemption for existing bookings during the consultation period. While an initial assurance was reportedly given, it was later reversed in the final legislation and guidance. This change has already impacted bookings, with at least one confirmed instance of a multi-room group canceling their reservation and rebooking elsewhere due to the unexpected additional charge.

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She explains that an assurance was initially provided, but was later overturned in the final legislation and guidance.

The FHTA warns that this situation could ultimately undermine Fiji Airways, the very entity the tax is intended to support. The association reiterated its support for Fiji Airways and clarified that it is not calling for the Tourism Services Tax to be scrapped entirely. Instead, FHTA is advocating for an exemption for all bookings that were made and paid for prior to the tax's announcement.

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Lockington says this could ultimately undermine Fiji Airways, which the tax is intended to support.