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Minutes of the Board of Directors Meeting Held at the Outrigger Fiji Beach Resort on Thursday 10Th August 2017

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Minutes of the Board of Directors Meeting Held at the Outrigger Fiji Beach Resort on Thursday 10Th August 2017 Minutes of the Board of Directors Meeting Held at the Outrigger Fiji Beach Resort on Thursday 10th August 2017 1.0 Present Property Dixon Seeto Hexagon Group of Hotels (Chair) Brian Kirsch Robinson Crusoe Island Resort Anthony Acland Captain Cook Cruises Craig Powell Shangri-La’s Fijian Resort & Spa Peter Gee Grand Pacific Hotel Peter Hopgood Outrigger Fiji Beach Resort 1.1 Gerard Knight Radisson Blu Resort Fiji Denarau Island William Whiting Treasure Island Resort Tammie Tam Warwick Hotels and Resorts Tarun Patel Vision Group Allan Gortan Paradise Taveuni Resort Andrew Davidson InterContinental Fiji Golf Resort & Spa Ravinder Dhesi Sheraton Resorts Denarau Uma Kant Mana Island Resort & Spa [Alternate for Patrick Wong] Lily Coffin Treasure Island Resort [Alternate for William Whiting] Nick Darling Volivoli Beach Resort Fiji [connected via skype] In Attendance Fantasha Lockington (CEO) Secretariat Elenoa Steiner (EO) Secretariat Apologies Robert Ring Tokoriki Island Resort Allan Gortan Paradise Taveuni 1.2 William Whiting Treasure Island Resort [Represented] Patrick Wong Mana Island Resort & Spa [Represented] 3.0 Matters Arising 3.1 Hotel Data Collection System (HDCS) Discussions with PS Shaheen Ali indicated that system introduction was on course. FHTA would continue to lobby against the introduction pending the confirmation that what the Ministry wants in terms of hotel data can link with hotel management systems. It appears the Ministry wants to roll the HDCS out prior to the Fiji Tourism Talanoa. A Working Group (Brian Kirsch, Peter Gee, Craig Powell and anyone else interested) to work closely with the Director Tourism to provide continued FHTA input. 3.2 FRCA 2nd Meeting with FRCA 17th July where 2017/2018 National Budget list of queries and clarifications were sought. 1. New tax threshold and PAYE handling FRACS is working with vendors to update payroll system changes and will provide information on the formulas to be used once confirmed Eclipse System has had some issues and may require training of staff – FRACS has indicated they have provided this training to some properties that had advised issues and can do so for anyone else who needs in-house training Tammie to confirm with Muni for dates/times for training P41 slips to be issued in 2 parts. Jan – 31 July and 01 Aug – 31 Dec 2. Tourism Tax Measures Incentives are now only for new hotels or those already/still in place Clarification that budget announcement on CEO having the discretion on approval only relates to his delegated authority to grant Provisional Approval instead of involving other ministries, but Final Approval is still subject to approval of Ministry of Finance and Tourism in addition to FRCS There is no policy change only administrative change in tax incentives Hotels requiring duty concessions for items not manufactured in Fiji can provide letter confirming this and apply directly to FRCS 3. Port Denarau clearance When is legislation expected to recognise Port Denarau as port of clearance – has to be Gazetted first Also needs to be set-up as a proper clearance facility and dialogue has taken place with DCL on these requirements Vanuabalabu also being looked at as a port of clearance to attend to Super Yachts and Yachts enroute to Tonga 4. Penalties for price displays to be inclusive of taxes Prices MUST be inclusive of taxes price with the breakdown percentage of each tax On-line bookings should have tax inclusive price Effective 01 August 5. STT & ECAL charged only once STT is to be charged by the primary provider of the service only. Eg. The coffee shop or restaurant or activity/event provider (eg wedding planner) – hotel does not include STT on total bill again (only for room and incidentals not already charged) 6. Bus Duties Does this include tourism businesses that need small buses to pick up and drop off customers (safari’s, tours, adventure tourism) – No. Charter services are vat inclusive RSL licensing is for $1.5m & below revenue businesses to encourage better bus services in the country Tourist bus requirements for less than 15 seater to be taken up with PS Transport/LTA Fringe benefit tax. Discussion on staff pick-up & drop off while not charged is operational cost. FRACS indicated that they are mindful of times, distance and hotel location issues and deal with this on a case by case basis – but usually not charged Muni to advise on Practice Statement on Fringe Benefit Taxes to be sent to FHTA in draft form for input 7. Relaxation of conditions relating to quad bikes Must be for agricultural and tourism use Euro 4 complaint (less than 5 yrs old) condition has been relaxed 8. Accelerated depreciation for renewable energy plant & machines – applicable to tourism industry as well? Yes. Intension is to support renewable energy incentives Includes water storage facilities and any other machinery that is used for renewable energy One-off 100% 9. Customs Tariff Act Disposal of goods prior to 5 year requirement – FRCS CEO discretion/approval Tax on towels and towel rolls has been reduced Reuse of disposable goods like towels for charity use/donations as part of disposal efforts would be considered favourably – Mr. Sami to provide a write up for industry dissemination and support 10. ECAL - to directly fund environmental protection programs Who will determine which programs get assistance How do interested businesses who already practice measures qualify and get involved –> the fund will sit with the Ministry of Economy and interested members can contact them directly for access 11. High Costs of Taxi Services in Tourism Price gouging in Denarau due to monopoly on service providers who complained that they had to because of high business costs and hotels demanding commission FRCS was advised that this was incorrect – all taxi operational costs were similar throughout Fiji and Denarua hoteliers did not have a choice for taxi operators as this was an LOU provided service as part of previous lease agreement conditions Denarau based hoteliers had met to discuss changes to more equitable prices across the board but are unable to effect this Will require LTA/Ministry of Transport addressing 12. Air BNB FRACS has advised they have a special unit looking into this now who are researching associated issues 13. Consolidated Accounting Grouping of losses – no change. 14. Blanket Tax Clearances – now available Members can apply for blanket tax clearances (6 monthly) instead of the required monthly submissions Need to come through FHTA for endorsement letters of request 3.3 Inclusions of FITBA/ Membership Andrew Brown joined the meeting as a representative of the Backpackers’ Association (FITBA). Andrew provided an update on his operation at Beach house and the challenges experienced by small operators due to the 25% Government taxes and the desire of many FITBA members to amalgamate with FHTA, noting that a reduced fee may be required. Peter Hopgood as Membership Committee chair to 5recommned on the fee structure for FITBA inclusion together with either board or subcommittee representation. 3.4 Survey Certification Challenges Tony Acland provided an update on the meeting with PS MSAF who had been provided a different version of the actual events where the non-issuance of certificates nearly stopped operations at Denarau Marina had an urgent call not been made to the Minister to intervene. They have changed the timeline to upgrade certificates. A lot of progress as far as PS understanding with online registration. 3.5 Foreshore Leases MITT has been asked for the work programme on sustainability. PS has confirmed that the programme has been approved by Parliament. Director Tourism was to get back to us. The PS was informed that for the industry to absorb the 10% Environment levy when we were already doing much more when compared to the other industries didn’t make sense. For more people to shoulder this responsibility, the percentage should come down to maybe 4% because of the bus operators, garages etc 3.7 Website Updates Secretariat continues to send out weekly updates through the Newsletter every Monday and we update the website daily. Changes included is the revolving hero shots (provided by members) and the uploading of legal opinions. 3.8 Media Workshop & Fiji Tourism Talanoa 3.8.1 Scheduled for 29th Aug at our Board Room – 10am start till 2pm. Program to be sent out. Responses received from Fiji TV, Fiji Sun, Communications Fiji Ltd and Fiji Times. Board members and sub- committee chairs to address their particular areas e.g. marine and marketing background. Secretariat to prepare press kits and slides. Fiji Tourism Talanoa 3.8.2 Craig Powell provided an update on their meeting with the Ministry last Tuesday chaired by PS. Reps present including CEO of Tourism Fiji and Trade Commissioner. Apologies from SOFTA and Fiji Airways Some key subjects that came up during discussions: Tourism Development Plan Discussed the Theme and Tourism Fiji and Ministry to contribute $50k in funds for Tourism Forum PS commented he liked the idea of Talanoa rather than a Forum. Organising committee to have a rep from each organisation e.g. Tourism Fiji, FHTA, SOFTA, Fiji Airways, etc. th th Proposed Dates – Tourism Industry Day on the 16 Nov and Tourism Talanoa on 17 Nov. Hotec can happen around the same time with FHTA Charity Golf on Saturday the 18th Nov. Need to get a good key note speaker who is a prominent figure in the tourism field Board members to assist in proposing or recommend a possible Chairman, Topics and Key note speaker. 3.9 Dive Expo dates Dive Committee to meet and discuss this at their meeting next month. 3.10 Hyperbaric Chamber Update Government will have something in place within 6 months. Secretariat should continue to push.
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