The Ministry of Tourism is currently in discussions with the Ministry of Finance to implement staggered increases in departure tax. This initiative aims to alleviate the immediate financial burden on travelers and support the tourism sector. Jacinta Lal, Director of Tourism, addressed concerns raised by Rinesh Sharma, a member of the Standing Committee on Foreign Affairs and Defence, regarding the consistent rise in departure tax over recent years.
Lal emphasized that discussions about the departure tax were also a focal point at the recent Fiji Tourism Convention, where a range of stakeholders, including government officials and private sector representatives, considered the possibility of reviewing or revising the tax. She noted the importance of managing the pace of these tax increases, stating, “One of the least negotiations we had with the Ministry of Finance was at least to stagger the increase that has come.”
The potential adjustment reflects the recognition that the departure tax significantly impacts the tourism industry, which is vital to Fiji’s economy. Lal expressed optimism that ongoing discussions with the Ministry of Finance will result in a tax structure that is adaptable yet does not compromise the overall fiscal stability of Fiji’s economy.
As consultations continue, there is a collective hope among stakeholders that any changes made will enhance the tourism experience while ensuring that the financial framework remains sustainable for the country. This balanced approach could serve as a mechanism to foster growth in the tourism sector, ultimately benefiting both travelers and the economy at large.
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