The Fiji Hotel and Tourism Association says Fiji’s economy cannot continue relying heavily on a single sector to carry the country’s fiscal burden, warning that key structural reforms remain outstanding.

Speaking at the National Budget Forum, FHTA Chief Executive Officer Fantasha Lockington says the industry supports fiscal discipline and responsible budgeting.

However, she says tourism is increasingly being relied on as a major revenue source while productivity reforms, infrastructure delivery, and cost-efficiency measures continue to move slowly.

Lockington says Fiji needs balanced growth across all sectors and warns against over-reliance on tourism, which already contributes significantly through foreign exchange earnings, employment, taxes, and supply chains.

“Responsible budgeting must also strengthen the systems that keep the economy moving and refrain from knee-jerk reactions to every crisis or perceived crisis that comes our way. We need to always be prepared for tourism. What does that look like? It means effective competitiveness, access to skilled workers, infrastructure delivery to meet any expansion, energy security, regulatory efficiency, business continuity, and strategic planning for the next crisis, so that we remain resilient each time one hits.”

She also raised concerns about the new five per cent tourism services tax, warning that unclear implementation processes could create compliance challenges for hotels, tour operators, and booking platforms.

Lockington says uncertainty around pre-bookings, bundled services, and third-party products could lead to administrative difficulties and pricing challenges for businesses.

The FHTA also questioned the fairness of using tourism to help fund Fiji Airways, saying that while the airline remains a critical national asset, the financial responsibility should be shared more broadly across the economy.

“The new 5% tourism services tax is the most difficult thing the industry is trying to wrap its head around. It applies to licensed hotels and tour operators who have turnovers of about 2 million, and it will start from the first of September this year. We fully agree there has never been any doubt the national airline must be supported. There is no question around that, and we have put forward some recommendations in formal minute meetings. We would never recommend a tax that is complicated to apply. Take it from me, we would not. The revenue is intended to support Fiji.”

Lockington says tourism plays a vital role in maintaining national connectivity but should not be disproportionately targeted as a source of government revenue.

She says greater policy certainty, stronger consultation, and faster progress on productivity and infrastructure reforms are needed to protect Fiji’s competitiveness as a tourism destination.