IMMEDIATE reactions from tourism operators in the country towards the recently announced interim fuel surcharge have been more concerns than panic.
Fiji Hotels and Tourism Association (FHTA) chief executive officer Fantasha Lockington made this comment in an interview with this newspaper, saying this was another cost pressure in an environment where businesses were already managing higher freight, food, maintenance, insurance, wages and other operating costs – that now included the expectation from the Fiji Revenue and Customs Service (FRCS) to implement visitor management system (VMS).
Fuel is a major cost for all operations in tourism – hotels, cruises, transportation on both air and land, and activities.
While she said this was not a new conversation for tourism, added that operators had been working for many years to reduce wastage, improve energy efficiency, invest in renewable solutions where possible, and to involve guests in conservation efforts.
“The introduction of an interim fuel surcharge was generally anticipated and planned for, given the ongoing global uncertainty and rising tensions linked to the conflict over the Strait of Hormuz,” Ms Lockington said.
“Most businesses within the tourism and hospitality sector had already been reviewing operational costs and implementing measures to manage these pressures as best they can under the circumstances.
“That does not discount the fact that SMEs will experience the hardest impact.” Ms Lockington said most operators would now be looking at what could be managed internally, including closer monitoring of power use, reviewing air conditioning settings, transportation logistics, improving maintenance of refrigeration and laundry systems, reducing unnecessary lighting and strengthening staff and guest awareness around energy conservation.
“Many tourism operators have already adopted these practices because sustainability and cost control go hand in hand.
“Some properties have invested in solar, energy-efficient equipment, water-saving systems and smarter operating practices, although these improvements require capital and cannot be done overnight.
“And that despite years of advocacy, Fiji has not adopted more supportive policies and incentives to enable wider uptake of renewable energy that might have cushioned private sector impacts of this fuel crisis.”
She said fuel surcharge was a concern, but the bigger issue was how Fiji responded to it.
“We need practical action, not panic.”
