Government has moved to resolve the dispute with the tourism industry over the implementation of the five percent Tourism Services Tax, confirming that the tax will only apply to new bookings made from September 1.

Deputy Prime Minister and Minister for Tourism and Civil Aviation Viliame Gavoka says the decision should bring an end to the ongoing disagreement between Government and the local tourism industry.

Gavoka says visitors who have already booked their Fiji holidays will not be affected by the five percent tax.

He says the Government wants to support Fiji Airways while also ensuring that visitors who made their bookings before the tax was introduced are not faced with an unexpected additional charge.

The announcement comes after the Fiji Hotel and Tourism Association raised concerns that applying the tax to existing bookings could damage Fiji’s reputation and result in visitors cancelling their holidays.

Gavoka is now urging visitors who have already booked their Fiji holidays to come to Fiji, saying they will not be charged the five percent tax on those existing bookings.

He says the focus should now return to growing Fiji’s tourism industry.

Gavoka says Fiji recorded more than hundred thousand visitor arrivals in both June and July, describing the results as phenomenal.

He says tourism continues to be a major driver of Fiji’s economy, while Fiji remains one of the most sought-after destinations in the Pacific.

The Government’s decision means the five percent Tourism Services Tax will apply to new bookings from the 1st of September, rather than holidays that were already booked before the tax was announced.

Gavoka says the clarification should now put the issue to rest and restore confidence among visitors and the tourism industry.