THE Fiji Hotel and Tourism Association (FHTA) has acknowledged the Government’s efforts to prioritise people-focused policies but cautioned that the expected decline in government revenue as a result of the 2.5 per cent reduction in Value Added Tax (VAT) must be strategically counterbalanced.
“We are particularly impressed with the reviewed focus on infrastructure development, education, and health services, as FHTA was one of many private sector organisations highlighting the need for more focused budgeting, planning and delivery in these critical areas,” FHTA said in a statement issued after Friday’s first reading of Government’s 2025-2026 national budget in Parliament by Deputy Prime Minister and Minister of Finance Prof Biman Prasad.
“While the reduction in VAT will undoubtedly be welcomed by many, the resulting significant decline in government revenue must be strategically counterbalanced by coordinated, whole-of-government support to ensure that development initiatives, efforts to diversify the economy, and the creation of new business opportunities proceed with urgency and purpose.”
While acknowledging Government’s “focus on building a resilient and inclusive economy”, FHTA further cautioned that with a notable reduction in revenue streams, sustaining that vision would require an even stronger emphasis on stimulating economic growth.
“It is vital that efforts to boost productivity, attract investment and encourage innovation are accelerated to ensure the long-term viability of the budget’s social support and development commitments.”
Apart from introducing targeted measures to ease cost of living, improve access to affordable housing and strengthen the delivery of essential services such as roads and water systems, Government also increased funding for Tourism Fiji.
“The increased funding for Tourism Fiji has been warmly welcomed, as it will enhance international marketing efforts—an increasingly vital investment amid intensifying global competition,” FHTA stated.
Note: This article was first published on the print version of the Fiji Times dated June 30, 2025
