SECTOR
PROFILE
TOURISM
TOURISM The Tourism Industry in Fiji is largely regarded
as an important driver for the Fijian economy.
competitive advantage in relation to tourism
options and sustainable development such
SECTOR In 2017, approximately 842,884 visitors spent
FJ$1.6 billion in Fiji across an estimated 1,200
as its warm tropical climate and rich cultural
diversity. The growth in international visitor
businesses. The tourism sector employs arrivals anticipates conforming increase in
Fiji’s renowned culture approximately 119,000 Fijians contributing capacity requirements and demand for new
above 30% of Fiji’s Gross Domestic Product products, facilities and services, thus paving
of hospitality and (GDP). Growth in the industry is becoming the way for local and foreign investment
resourcefulness delivers more broad–based with increased benefits opportunities.
trickling to the grassroots level, expanding
exceptional value for eco-tourism and tourism related activities. New Short Life Investment Package
investors. There are many The industry offers a wide range of services • 10-year tax holiday for capital investments
examples of commercial and facilities to suit the needs of its markets not less than $7million. Import duty
ranging from eco-tourism to high-end tourism exemption on all capital goods (including
success resulting from products. Since 2014, investor confidence capital equipment, plant & machinery) not
investment ventures by levels have increased positively, contributing available in Fiji but this does not include
tremendously to where it is today. Fiji furniture or motor vehicles that are used in
international partners. is known to have a number of critical carrying out the investment.
• Short Life Investment Package (SLIP)
Incentives is also available for retirement
facilities and hospital resorts.
• Short Life Investment Package (SLIP)
Incentives is also available for NEW
Apartments provided the length of stay is
not more than 6 months.
• Recipients of the provisional approval for
SLIP in 2016 shall complete the project
within two years from the date the
provisional approval was granted.
• Investors would only need to provide a
sketch plan to obtain provisional approval
for the investment allowance, and not
necessarily a certified approved.
• There will be no SLIP from 2017 for
existing hotels.
• A new SLIP incentive with 4 years Tax
holiday will be available to new hotels from
2017.
PAG E 2 INVESTMENT FIJI
OPPORTUNITIES INCENTIVES
• Tourism Areas – areas such as Vanua Levu, Suncoast and outer • Tax Free for capital investment above $2,000,000 for a
islands have been identified as higher yielding by visitation. In period of 13 consecutive fiscal years in a Tax Free Region
efforts to complement Governments initiative to spread benefits (TFR).
across the country, these areas have also been declared tax free • Investment allowance (in addition to ordinary depreciation)
regions whereby companies can operate without being subject to of 25% of total capital expenditure is allowed as a
income tax. deduction provided there is no shift of tax revenue to other
• Accommodation – gaps in the accommodation sector note the countries.
need for higher end accommodation types such as upscale • Tax free region offer tax free status and exemption on the
boutiques and eco-friendly resorts. Additionally, whilst Fiji has importation of raw materials, machinery and equipment.
shown its capacity to attract international chains, there is still a
need to encourage more accommodation properties with state STANDARD ALLOWANCE
of the art conference facilities to cater for the increase in MICE • Applicable to building of new hotel including renovations
market. or refurbishments or extensions of existing hotel and
• Attractions/Tours – in order to enhance visitor experience, there International Retiree Facilities.
is a need for necessary investment in tourist attractions such as • Investment Allowance can only be written-off against the
Culture and Heritage. For example, Museums and cultural centres income of the hotel business or income from the hotel
to serve as anchor attractions in highly dense tourism areas such premises.
as Nadi. • Losses carried forward extended to 4 years.
• Activities – water and land based activities are common amongst • Recipients of the provisional approval for Standard
tourists visiting Fiji. The provision of nature based activities Allowance in 2016 shall complete the project within two
particularly developing heritage sites have the potential of years from the date the provisional approval was granted.
becoming popular tourist spots. Similar facilities can then be • Investors would only need to provide a sketch plan to
associated to trail networks and recreation segments such as obtain provisional approval for the investment allowance,
hiking, trail walks and so forth. and not necessarily a certified approved.
• Retail – investment in high end retail shopping that looks at the
development and enhancement of Fijian Made products to ensure
an immersive visitor experience.
• Supporting Infrastructure - essential services and infrastructure
is needed to be able to accommodate the increased demand and
ensure all areas are accessible, especially outer islands. As such,
opportunities exist in the development of interisland transfer
boats, seaplanes, cruise/yacht terminals etc.
S E C TO R P R O F I L E PAG E 3
since 2010. There has been a sharp rise in confidence of the domestic
private sector and foreign investors with new bank lending for investment
purposes rising consistently. Fiji is also the regions foremost trading hub
WHY with excellent shipping routes across the Pacific Islands. Fiji has spent a
total of $11 billion worth of road infrastructure and 1,200 bridges, 47 jetties,
INVEST IN FIJI? 5 commercial ports, 25 local and 2 international airports.
Fiji’s renowned culture of hospitality and resourcefulness delivers Fiji has a business friendly tax structure that supports innovation and
exceptional value for investors. There are many examples of commercial investment with 20% corporate tax and a lower rate of 10% for companies
success resulting from investment ventures by international partners. listed on the South Pacific Stock Exchange. The Fijian Government
Fiji offers a compelling investment proposition and has a stable political has announced a number of incentives and pro-growth policies to
environment that encourages economic growth and development. attract investments and encourage economic growth that is stable and
Continued investment in infrastructure, education and training have sustainable. Government plans to increase per capita income by fourfold
implications not only for the attractiveness of Fiji as a location to investors, over the next 20 years.
but also for the quality of inward investment. Investment Fiji is witnessing a
growing interest from large multinationals. The continuous enhancement of infrastructure, growth of our tourism
industry, advantages of a young population, a first class English-speaking
Economic stability is essential for attracting significant inward investment; workforce, natural flair of services, conducive business environment and
with Fiji having both low levels of inflation and positive GDP growth low entry costs are key ingredients of Fiji’s continued success.
PAG E 4 INVESTMENT FIJI
INVESTMENT
FIJI
Investment Fiji was established as the Economic Development Board (EDB) in 1980 S U VA
and is guided by the Foreign Investment Act. A statutory organization, Investment 6th Floor
Civic Tower, Victoria Parade
Fiji operates independently as the marketing arm of the Fiji Government, providing P.O Box 2303
Government Buildings, Suva
services and assistance to promote, and stimulate investments and exports. As such, T (+679) 331 5988
F (+679) 330 1783
Investment Fiji carries out three primary roles, Investment Promotion, Investment E [email protected]
Facilitation and Export Promotion.
The Investment team provides in depth market intelligence, identifies potential investment projects and assists
investors and delegations by arranging suitable meetings and introductions - in addition to promoting Trade and
Investment opportunities overseas.
The purpose of the Investment Facilitation team is to provide post-establishment after-care facilitation services
LAUTOKA
enabling and assisting both foreign and local Investors in establishing their business and providing information, Ground Floor
Jay Lal & Company Complex
support and assistance during the growth phases – and through to developmental support to retain investment, 21 Tui Street
encourage follow-on investment and achieve greater economic impact. Lautoka
The purpose of our Trade and Export team is to increase exports in general, but particularly of entities,
whose products and services add value, allow for import substitution and contribute to employment.
LABASA
Level 1
POSITIVE 96% 40 & UNDER
Suite 1 LTD Building
Damanu Street
Labasa
ECONOMIC GROWTH SINCE 2010 literacy rate 69% OF total population
S E C TO R P R O F I L E PAG E 5
