The Fiji Hotel and Tourism Association says the industry has taken years to recover from the 2000 coup and the last thing it needs is more political instability.
The association's president, Dixon Seeto, says they are concerned about the deep divisions caused in Fiji by the tabling of the government's Reconciliation and Unity Bill.
Mr Seeto says further instability is likely to have a serious impact on the tourism industry.
"If there is going to be instability arising as a result of the bill, it could create the impression of instability which could then affect people's perception of Fiji."
He says the association has appointed a subcommittee to make a formal submission on the bill to the parliamentary Justice, Law and Order committee.