The Ministry of Tourism is actively negotiating with the Ministry of Finance to implement staggered increases in departure tax. This initiative aims to ease the financial burden on both travelers and the tourism sector. Jacinta Lal, the Director of Tourism, shared this development while addressing 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.
The issue of departure tax was a prominent topic at the recent Fiji Tourism Convention, where government officials and private sector representatives engaged in discussions about the potential for review and repurposing of the tax. Lal highlighted the necessity of effectively managing the timing of tax increases in their ongoing negotiations with the Ministry of Finance.
Lal remarked, “So one of the least negotiations we had with the Ministry of Finance was at least to stagger the increase that has come. The CAFF again is one of the biggest beneficiaries of the departure tax.” This underscores the tax’s significance for various stakeholders within the tourism sector.
The goal of these discussions is to ensure that while the departure tax is adaptable, it does not adversely impact Fiji’s overall economic landscape. The Ministry of Tourism plans to continue collaboration with the Ministry of Finance and industry partners as it evaluates necessary adjustments to the current tax structure. This ongoing dialogue signals a proactive effort to harmonize tax policies with the broader requirements of the tourism industry and the economy, fostering a sustainable environment for growth and development.