The Fiji Visitors Bureau says the two per cent increase in Hotel Turnover Tax announced in the budget could slow trade.
The Bureau chief executive, Patrick Wong, said the move had the potential to dampen the industry at a time when it was in recovery mode.
He told the Fiji Times that suppliers will be very disappointed with the additional increase as prices for 2008/2009 were already advertised worldwide.
Mr Wong said the taxation increase meant reloading rates and reprinting materials such as brochures.
The Bureau is disappointed with the nearly US$ 8 million budget allocation, saying it will have to revisit marketing plans for 2008.