Tourism Sector

Fiji’s renowned culture of hospitality and resourcefulness delivers exceptional value for investors. There are many examples of commercial success resulting from investment ventures by international partners.

The Tourism Industry in Fiji is largely regarded as an important driver for the Fijian economy. In 2016, approximately 792,320 visitors spent FJ$1.6 billion in Fiji across an estimated 1,2001 businesses. The tourism sector employs approximately 112,0002 Fijians contributing to 29.9%3 of Fiji’s Gross Domestic Product (GDP). Growth in the industry is becoming more broad–based with increased benefits trickling to the grassroots level, expanding eco-tourism and tourism related activities. The industry offers a wide range of services and facilities to suit the needs of its markets ranging from eco-tourism to high-end tourism products. Since 2014, investor confidence levels have increased positively, contributing tremendously to where it is today. Fiji is known to have a number of critical competitive advantage in relation to tourism options and sustainable development such as its warm tropical climate and rich cultural diversity. The growth in international visitor arrivals anticipates conforming increase in capacity requirements and demand for new products, facilities and services, thus paving the way for local and foreign investment opportunities.

OPPORTUNITIES IN THE TOURISM SECTOR

  • Tourism Areas – areas such as Vanua Levu, Suncoast and outer islands have been identified as higher yielding by visitation. In efforts to complement Governments initiative to spread benefits across the country, these areas have also been declared tax free regions whereby companies can operate without being subject to income tax.
  • Accommodation – gaps in the accommodation sector note the need for higher end accommodation types such as upscale boutiques and eco-friendly resorts. Additionally, whilst Fiji has shown its capacity to attract international chains, there is still a need to encourage more accommodation properties with state of the art conference facilities to cater for the increase in MICE market.
  • Attractions/Tours – in order to enhance visitor experience, there is a need for necessary investment in tourist attractions such as Culture and Heritage. For example, Museums and cultural centres to serve as anchor attractions in highly dense tourism areas such as Nadi.
  • Activities – water and land based activities are common amongst tourists visiting Fiji. The provision of nature based activities particularly developing heritage sites have the potential of becoming popular tourist spots. Similar facilities can then be associated to trail networks and recreation segments such as hiking, trail walks and so forth.
  • Retail – investment in high end retail shopping that looks at the development and enhancement of Fijian Made products to ensure an immersive visitor experience.
  • Supporting Infrastructure – essential services and infrastructure is needed to be able to accommodate the increased demand and ensure all areas are accessible, especially outer islands. As such, opportunities exist in the development of interisland transfer boats, seaplanes, cruise/yacht terminals etc.

  1. Applied Type 2 multiplier on total number of accommodations from TSA 2008
  2. WTTC, Tourism and Travel – Economic Impact, Fiji, 2016 (incl. indirect impact)
  3. Reserve Bank of Fiji Economic Indicators

INCENTIVES

  • Tax Free for capital investment above $2,000,000 for a period of 13 consecutive fiscal years in a Tax Free Region (TFR).
  • Investment allowance (in addition to ordinary depreciation) of 25% of total capital expenditure is allowed as a deduction provided there is no shift of tax revenue to other countries.
  • Tax free region offer tax free status and exemption on the importation of raw materials, machinery and equipment.

STANDARD ALLOWANCE

  • 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 extended to 4 years.
  • Recipients of the provisional approval for Standard Allowance in 2016 shall complete the project within two years from the date the provisional approval was granted.
  • 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 $7million. 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.
  • Short Life Investment Package (SLIP) Incentives is also available for NEW Apartments provided the length of stay is not more than 6 months.
  • Recipients of the provisional approval for SLIP in 2016 shall complete the project within two years from the date the provisional approval was granted.
  • Investors would only need to provide a sketch plan to obtain provisional approval for the investment allowance, and not necessarily a certified approved.
  • There will be no SLIP from 2017 for existing hotels.
  • A new SLIP incentive with 4 years Tax holiday will be available to new hotels from 2017.
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Contact Us

Fiji Trade Commission - PNG & MSG

PO. Box 883
Port Moresbey 121
National Capital District
Papua New Guinea

P: +675 320 2208/ E: info@fijitradecom.org

Fiji Trade Commission – Office 5, Level 5, Harbourside West Tower, Stanley Esplanade, Downtown, Port Moresby

© Fiji Trade Commission (PNG) 2019