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Tourism Sector
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Tourism Sector

For Investors  >  Sector Profiles  >  Tourism Sector
OVERVIEW
The tourism industry is potentially regarded as the largest provider of jobs and the greatest earner of foreign exchange. Growth is becoming more broad-based and benefits trickling to the grassroots level with expanding eco-tourism and tourism related activities. The industry offers a wide range of services and facilities to suit the needs of the target markets ranging from back-packers to up-market tourism products. As per 2013 budget announcement, it was revealed that Tourism Fiji will again receive $23.5 million to fund the cost of marketing Fiji abroad. The recent rebranding of the organisation under the slogan “Fiji: Where Happiness Finds You,” and our national airline as “Fiji Airways,” is expected to further boost the performance of the tourism industry. It will cement its place as Fiji’s number one foreign exchange earner.
 
INVESTMENT INCENTIVES
STANDARD ALLOWANCE
  • Investment allowance (in addition to ordinary depreciation) of 55% of total capital expenditure is allowed as a deduction provided there is no shift of tax revenue to other countries.
  •  Applicable to building of new hotel including renovations or refurbishments or extensions of existing hotel and International Retiree Facilities.
  • Investment Allowance can only be written-off against the income of the hotel business or income from the hotel premises.
  •  Losses carried forward can be claimed for up to 8 years.
  • Recipients of the provisional approval for Standard Allowance to commence implementation of project within one year.
  •  Investors would only need to provide a sketch plan to obtain provisional approval for the investment allowance, and not necessarily a certified approved.
NEW SHORT LIFE INVESTMENT PACKAGE
  • 10 year tax holiday for capital investments not less than $7 million.
  •  Import duty exemption on all capital goods (including capital equipment, plant & machinery) not available in Fiji but this does not include furniture or motor vehicles that are used in carrying out the investment.
  •  Short Life Investment Package (SLIP) Incentives is also available for retirement facilities and hospital resorts.
  • Recipients of the provisional approval for Standard Allowance to commence implementation of project within one year.
  •   Investors would only need to provide a sketch plan to obtain provisional approval for the investment allowance, and not necessarily a certified approved. 
However, apart from the above incentives, assistance is also available through Customs Tariff.
Customs Tariff
Part 3
1.      Code 244 - Hotels and resorts qualify for concession under code 244 – on capital equipment plant and machinery (include kitchenware, raw materials, furniture and furnishings)  with duty rates of Free Fiscal, Free Import Excise and 15% VAT payable
2.      Code 235  Hotels and resorts also qualify for concession under code 235 on
  • Building materials etc.
  • Specialized water sports, duty rates 10 Fiscal. Free Import Excise 15% VAT
  •  Heavy plants. 5% Fiscal, Free Import Excise and 15% VAT payable
3.      Hotels and resorts can import vessels under code 115; Part 2 of the Customs Tariff with duty rates of 5% Fiscal, Free Import Excise and 15% VAT payable, prior approval is required.
4.      Hotels and resorts qualify for concession on desalination and sewerage Treatment plant and machinery under code 273   Free Fiscal, Free Import Excise and 15% VAT.
5.      Code 270   Jet skies qualify for concession under code270 duty rates 5% fiscal Free Import Excise and 15% VAT.
 
Potential Investment Opportunities
The Fiji tourism product includes natural & cultural attractions, cruising, water sports & resort activities, yachting, surfing, diving, wedding & honeymoons, MICE (meetings, incentives, conventions and exhibitions), shopping, sports and community village.
Types of tourism most in demand and offering key investment opportunities in Fiji are agro-tourism, spa tourism, health tourism, sport tourism, nautical tourism, retirement resort villages, integrated hotels time share hotels/resorts and villas.
 
INVESTING IN THE SECTOR
Under the 2009 Foreign Investment Regulations (FIR), Tourism Sector has few requirements that needs to be met by the investors should they wish to undertake the following activity that is listed below.
 
TOURISM (Cultural Heritage)
Any activity involving investment in the cultural heritage of the Fiji islands must have at least $500,000 in owner’s contribution or paid-up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.
Apart from the above activity, the 2013 budget announcement has made it easier for investors to invest in this sector as the minimum requirement of $250,000 has been waived. Investors can invest any amount of money into this sector.