The Fiji Hotel and Tourism Association (FHTA) has praised the government’s focus on people-centered policies in its newly unveiled national budget, particularly highlighting initiatives in infrastructure, education, and healthcare. FHTA acknowledges these efforts but expresses concern over the anticipated decline in government revenue caused by the recent reduction of the Value Added Tax (VAT) from 15% to 12.5%. This cut, while beneficial for residents, is expected to result in a significant revenue drop, and FHTA stresses the need for a coordinated response to mitigate the impact.
FHTA lauds the increased funding for Tourism Fiji, which is essential for enhancing international marketing amid growing global competition. This funding, which rises from $44 million to $48 million, is viewed positively by industry leaders as a crucial investment to boost tourism, a sector pivotal to Fiji’s economy and job market.
Despite the optimism regarding infrastructural investment and tourism funding, FHTA cautions that sustainable economic growth must be a priority to uphold the government’s vision for a resilient economy. They advocate for accelerated efforts to stimulate productivity, attract investment, and foster innovation to balance the adverse effects of revenue reduction on social programs and development initiatives.
Furthermore, similar discussions in the past have emphasized the necessity of a stable regulatory environment to encourage foreign investment in Fiji’s tourism sector, ensuring the country’s attractiveness as a destination through consistent policies and strategic infrastructure improvements.
Overall, the government’s commitment to enhancing economic structure through focused budgeting and sound fiscal management offers a promising outlook. By aligning social welfare measures with growth strategies, there is potential for long-term economic resilience and improved quality of life for Fijians.
Leave a comment