Introduction of 5% serviced fee in Tourism Industry will reduce visitor arrivals - Wong

The Fiji Hotels and Tourism Association has highlighted in it's submission to the Parliamentary Standing Committee on Economic Affairs that the introduction of the 5% Service fee in the Tourism Industry would heavily impact on the salaries of our local workers.

CEO for the Fiji Hotel and Tourism Association, Michael Wong said the proposed service fee will reduce visitor arrivals and will also cause a drop in overall spending by guests.

He said it will lead to a decrease in both foreign and local investments.

Wong said service standards will not improve and resorts will close down.

However, Committee member, Viliame Gavoka has questioned the association on why developed economies such as Japan and South Korea were able to introduce and implement the service fee compared to Fiji.

The Fiji Hotel and Tourism Association said when you compare these countries with Fiji, millions of tourists are visiting those countries.

According to the Bureau of statistics, 692,630 tourists visited Fiji last year.

The Committee has received the submission and will now put it forward for consideration.

The submissions are being taken based on the proposal put forward by Gavoka in parliament for the service fee to be levied on tourists and the income to be shared amongst the hotel and tourism workers.