Tourism leader Tony Whitton has expressed relief at the number of tourism initiatives announced in the 2021/2022 National Budget.
The managing director of Rosie Travel Group said Economy Minister Aiyaz Sayed-Khaiyum also rightfully noted that tourism was the economic engine of the country.
“A number of targeted rebates for tourism initiatives were announced tonight (Friday) of which we are grateful for,” Mr Whitton said.
“This includes tax free rebates for new resort construction under a Short Life Investment Package (SLIP) to insurance cover for international visitors when borders reopen.
“The standout for me was the announcement in relation to the new Fiji business working capital support for small to large businesses.”
Mr Whitton said the resilient but long-suffering tourism businesses that had been closed now for almost a year and a half would take some encouragement from the announced two-year interest free $200 million Reserve Bank of Fiji working capital support facility.
He said this would provide vital working capital at favourable conditions to ensure the tourism businesses do not shut down.
“When the borders reopen, this can create new jobs and help rebuild the economy.”
Mr Sayed-Khaiyum, in his budget address, said under SLIP, new hotel investments projects would be offered five years’ income tax holidays for capital investments from $250,000 to $1 million, a seven-year tax holiday for investments between $1 million to $2 million and a 13-year tax holiday for capital investments exceeding $2 million.
A 20-year income tax holiday would be offered for investments above $ 40 milion.
