A fundamental misunderstanding of how the travel booking ecosystem operates and a broken promise to travellers.
Those are just two of the stinging criticisms being levelled at the Fijian Government after it introduced a new Tourism Services Tax.
The tax is being applied retrospectively, meaning travellers who have already paid in full – including families with school holiday bookings and large group or corporate travellers – are being asked to pay additional costs for trips they considered settled.
The move has been attacked by the Australian Travel Industry Association (ATIA), who say travel agents and tour operators are being left to administer and explain a tax they had no part in creating.
ATIA adds that key practical questions about collection, net rates, existing contracts and the distinction between suppliers and agents remain unresolved.
“The design and rollout reflect a complete lack of understanding of how the travel booking ecosystem works and it is travellers and travel businesses who will pay the price for that failure,” said Dean Long, ATIA CEO,
“Retrospective application is an absolute no-go. Once a customer has paid, that price is locked in. Sending a fresh bill after the fact is not tax collection, it is a broken promise dressed up as policy.”
ATIA is meeting with the Fijian Government in a bid to get them to rethink the controversial decision.
“None of this needed to happen. The tax arrived with zero consultation with the travel industry in Australia or New Zealand despite the significant importance of these markets to Fiji,” added Mr Long.
“Australia is Fiji’s largest tourism market and New Zealand its second-largest. Even setting aside the retrospective billing, the industry was given just over two weeks between the announcement and the tax’s start date, nowhere near enough time to update contracts, pricing systems or advise travellers.
“Travellers are the ones left exposed. Families with September school holiday bookings already paid in full and travellers on large group, corporate and film production bookings are being asked to find extra money for a holiday they thought was settled months ago.
“That is not how you treat people who chose Fiji in good faith.”
