Fiji is introducing a new tourism tax, confirmed by its finance minister, who says he’s building a more stable future for the country while the global environment is ‘extremely volatile and uncertain’.
Finance Minister Esrom Immanuel has announced that a temporary 5% tourism services tax, which will apply to hotels, tour operators and cruise operators, will result in an annual turnover of at least FJD2 million. It will be in place for 12 months from 01 Sep, with the funds to be directed entirely to Fiji Airways, which Immanuel says continues to face financial pressure from rising aviation fuel costs, as well as its ongoing recovery from losses incurred during the pandemic.
In addition to the temporary levy, it is reported the government will bring a planned FJD200 million guarantee for Fiji Airways before Fiji’s Parliament.
Speaking to parliament, Immanuel also announced that the government will continue to support Fiji Airports’ infrastructure program over the next five years, with a FJD700 million investment to facilitate modernisation and upgrades.
He added that the government is allocating funds to advance major infrastructure and tourism development programs, including Na Vualiku Project and the Vanua Levu Tourism Development Program.
