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Tourist
Guide
With nearly half a million tourists visiting Fiji in a year,
tourism has become the country's largest source of foreign exchange.
It is also Fiji's single largest export industry. In 2002, tourism
contributed over $521 million from over 400,000 visitors. The
industry has been striking double-digit growths in visitor arrivals
for two consecutive years now. Gross earnings have surpassed
the half-a-billion dollar mark. The industry now sets its goal
of making tourism a one billion dollar industry by 2007.
The optimism that tourism earnings can reach the billion-dollar
mark also stems from the huge investment plans of Air Pacific,
Fiji's international carrier. After announcing a $9.6m profit
in 2002, the airline a few months later announced an expansion
plan of $1,300 million for its fleet. This begins with the delivery
of two Boeing 747-400s on lease from Singapore Airlines, the
first in April and the second in June this year. In addition,
Air Pacific has ordered two Airbus A330-300s and an option for
two more. The first Airbus is due for delivery in 2005 and the
second in 2007. If options were exercised, the second and third
Airbuses would join the flight in 2009 and 2011 respectively.
In the South Pacific region, Fiji is the number one destination,
catching twice more visitors than French Polynesia, the number
two destination. Fiji has about 5,000 hotel rooms. But the Fiji
Visitors Bureau believes the country needs to open at least
one good 300-room resort annually to cope with predicted demand.
The recently completed 138-apartment Trendwest timeshare complex
is hoped to provide the impetus for pending investments totalling
$1 billion to proceed, and most of the planned activities are
in the tourism sector.
These include:
- Hilton Resort and spa: New Zealand developers have begun
work on a $170 million scheme for a 110 room hotel, 317
villas, five restaurants, and two swimming pool complex
at Denarau Island, near the Nadi International Airport.
The first stage was opened at the end of 2003.
- Work at Natadola Beach, 50 kilometres from Nadi, has begun
with the first stage of a 12-year scheme for building a
resort town of about 15,000 people with at least four hotels
and all other amenities associated with such developments.
- Upmarket United States operator Rosewood Hotels &
Resorts will manage a 75 room property now taking shape
with accompanying villas at Taunovo Bay, 55 kilometres from
the capital Suva, by Coral Coast Properties, a United States
investor.
- Vulagi Lagoon, a 265-hectare property with a two-kilometre
beach, is a seven-minute drive from Nadi Airport. With completed
infrastructure, local developer Charter Properties is marketing
the development with seven hotels, two gold sites and also
villa sites.
Recognising the huge potential the industry holds, the Fiji
Government in its 2003 budget upped the Visitors Bureau's marketing
budget from $11 million to $13m per annum and put forward the
Fiji Tourism incentives/concessions outlined below:
Hotels Aid Act — where projects
for approved hotel construction or extension may be entitled
to an investment allowance. The investor may set off 55% of
the approved capital expenditure (less the cost of land) against
chargeable income arising from the construction or extension
until claimed in full. Applications to be addressed to the Hon.Minister
forTourism, Suva, Fiji.
Short Life Investment Package (SLIP)
— encourages investment in upmarket facilities with investment
of at least $40 million and minimum room capacity of 200 rooms.
The Five-Star Package —
concessions include duty free import of all capital items/goods,
20 years tax holiday, carry forward losses for up to six years,
tourist plant can generate its own power supply and sell any
excess.
Tourist Vessel Investment Allowance
— a sea vessel built in Fiji for the transport of tourists
with a minimum cost of $250,000 may entitle the investor to
set off 55% of the cost of construction against income from
that vessel. Where the 55% investment allowance remains unused
after the first five years, it may set off against the income
of other ships or income from other tourist activities carried
on by the vessel owner. This concession is provided for in the
Fiji Income Tax Act.
Other Duty Concessions —
Following FTIB approval, an investor seeking import concession
is required to submit a copy of the company Registration Certificate
and be registered for VAT (10% value added tax) before clearing
goods. New hotel projects must also submit buildings plans.
Additional information on the tourist industry in Fiji can be
obtained from the following websites:
Fiji Visitors Bureau – www.bulafiji.com
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