The Ministry of Tourism is currently in talks with the Ministry of Finance to implement staggered increases in departure tax, a strategy designed to alleviate the immediate financial burden on travelers and the tourism sector. Director of Tourism Jacinta Lal shared this update while addressing concerns voiced by Standing Committee on Foreign Affairs and Defence member Rinesh Sharma regarding the continuous rise in departure tax over the years.
The topic of departure tax was also a significant point of discussion at the recent Fiji Tourism Convention, where both government officials and private sector representatives engaged in dialogues about potential reviews or repurposing of the tax. Lal emphasized the ongoing negotiations with the Ministry of Finance, focusing on the necessity to manage the timing of tax increases effectively.
She stated, “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 statement underlines the critical importance of the departure tax for various stakeholders within the tourism framework.
The discussions aim to ensure that while the tax remains adaptable, it does not negatively impact the overall fiscal landscape of Fiji’s economy. The Ministry plans to continue consultations with the Ministry of Finance and industry partners as it considers necessary adjustments to the current tax framework. This engaging dialogue reflects a proactive approach to balancing tax policies with the broader needs of the tourism industry and the economy at large.