The Fiji Islands Hotel and Tourism Association says any wage increase should be based on performance.
The Association's president, Dixon Seeto, told the Fiji Times, this would see productivity improve.
Mr Seeto was reacting to the labour productivity report which stated that productivity growth in the country for the past seven years averaged about 0.5 per cent.
Mr Seeto says the rate of productivity was not good and Fiji needed to work on it to grow in the future.
He says this improvement has to come from the top and more training is required.