The Government is concerned by the continued delaying tactics being employed by the Fiji Hotel and Tourism Association and a small number of industry players in relation to the implementation of the 5 percent Tourism Services Tax.

In a statement, Finance Minister Esrom Immanuel says government had engaged with the FHTA and key tourism industry stakeholders since June to discuss the introduction, application and implementation of the tax.

He says government has also provided the industry with additional time to prepare for the new measure, with the implementation date adjusted from 1st July, to 1st August, and subsequently to 1st September.

Immanuel says these extensions were provided in good faith to allow the industry sufficient time to prepare its systems, communicate with customers and ensure compliance.

He adds despite this, Government is concerned that some industry players, with the support of the FHTA, continue to create negative publicity around the Tourism Services Tax and its implementation.

Government believes that these actions risk undermining and sabotaging a measure that is in the broader interest of Fiji’s tourism industry and the national economy.

Immanuel says the 5 percent Tourism Services Tax was introduced as part of Government’s broader efforts to support Fiji Airways, which is critical to the survival and growth of Fiji’s tourism industry.

He adds that tourism contributes approximately 40 percent of economic activity, generates nearly $3 billion in foreign exchange earnings and supports thousands of jobs, businesses and livelihoods throughout Fiji.

The MInister says Fiji Airways is the national carrier and a critical gateway for international visitors, and the strength of Fiji’s tourism industry is directly linked to the strength and financial sustainability of our national airline.

He says Many hotels and tourism service providers have received tax holidays ranging from 13 to 20 years, together with various duty concessions and other forms of Government support.

Immanuel says under the previous Government, the tourism sector was subject to a combined 16 percent turnover-based tax through the 10 percent ECAL and 6 percent STT, which remained in place for a number of years.

The current Tourism Services Tax is 5 percent, is turnover-based and is being introduced as a temporary measure for only 12 months.