31 Mar 2008

Fears for Fiji tourism industry following increase in hotel tax

11:45 am on 31 March 2008

The Chairman of the Fiji Visitors Bureau, Patrick Wong, says the 2 per cent increase of the hotel turnover tax that comes into effect on April 1 could effectively put Fiji out of the tourism market.

Mr Wong told the Fiji Times Fiji is already facing stiff competition from neighboring Pacific Island nations and Asian countries.

He said Fiji is regarded as an expensive destination in terms of food and beverage; the soon to be total five percent HTT would make the country an unfavorable destination.

A statement issued by the Fiji Islands Revenue and Customs Authority said effective from April 1 all licensed hotel owners would be required to levy 5 per cent HTT on amounts included in a hotel guests bill and to show the HTT component separately on the invoice.