FHTA Tourism Talanoa – Where is the Employment Levy Really Going?

When we talk about developing Fiji’s economy, we often say that our people are our greatest asset.

In the tourism industry, we live and breathe that reality every day. The smiling face that checks in your guests, the skilled chef preparing a local delicacy or reinventing a global favourite, the tour guide who knows every hidden gem of his home—these are the people who make Fiji magical.

But what happens when we stop investing in them the way we should?

This is the uncomfortable truth: our industry is facing the consequences of a training and education system that has failed to evolve alongside its demands. As travel trends shift, digital transformation accelerates, and visitor expectations grow more sophisticated, the workforce struggles to keep pace.

Outdated curricula, limited hands-on experience due to outdated training equipment, and a disconnect between industry needs and educational institutions have resulted in a talent gap that affects service quality, innovation, and overall competitiveness.

Take the FNU levy (often called the Employment Levy or Training Tax), which is the compulsory 1% of gross salary paid by most employers in Fiji. It was introduced with a clear and commendable purpose: to fund training and upskilling of Fiji’s workforce, through programmes delivered by FNU’s National Training and Productivity Centre (NTPC).

It made sense. We pay in, and in return, our staff are trained with relevant, current skills that match industry needs.

That was the vision. But the reality today is far removed from that promise. Since 2017, Governments have redirected the lion’s share of this levy. As of the last available data, only 10% of the total levy goes to FNU for training. The rest—90%—has been used to fund unrelated areas: 50% to the Medical Scheme and 40% to the Accident Compensation Commission of Fiji (ACCF).

The 50% Medical Scheme portion was recently rescinded, although no one is quite sure whether it has been stopped and if it has, where the funds are now going.

With further intrigue building now with the introduction of two quietly introduced and rarely shared or discussed Bills seeking to – once again – divert these funds. This time to the Ministry of Employment to manage.

We understand the importance of healthcare and compensation for injured workers.

But the issue here is about integrity and transparency—when an employer levy is mandated for workforce training, and that money is then diverted for other purposes, we should be honest about what that means. It means our future workforce is underprepared. It means we’re breaking a promise made to every employer and worker in Fiji.

And now, the cracks are showing.

Across tourism properties in Fiji, employers are finding themselves in the position of having to retrain fresh graduates, because the training these students receive at our institutions is not fully aligned with the realities of our industry today.

This is not a criticism of the students. It’s not even just a criticism of the lecturers. It’s a system-level issue. When we underfund training, when curricula are outdated, and when industry isn’t meaningfully involved in shaping programmes, this is the inevitable outcome.

We are not seeing graduates equipped with the basic customer service skills, technological awareness, or practical experience required to hit the ground running in our hotels, resorts, or tour and service support companies. Instead, we’re having to spend additional resources to bring them up to speed. And this is happening in an industry that is still recovering from the pandemic, managing inflationary pressures, and trying to maintain competitive standards in a global tourism market.

This is unsustainable.

If you are not already aware, tourism is a cornerstone of the economy. We employ tens of thousands of people directly and indirectly. We are on the rise again after a devastating few years. But for us to continue to grow, and to do so in a way that supports local employment and long-term sustainability, we need a workforce that is well-trained, adaptable, and prepared for the evolving expectations of discerning global travellers who have the luxury of choosing destinations that might be cheaper, closer or more exciting to travel to.

We are calling for a serious reassessment of this unfortunately named employment levy’s use and a return to its original purpose. That means redirecting a greater portion—if not the full amount—back to workforce training and development through FNU. But this isn’t just about restoring funding. It’s also about reforming how training is developed, delivered, and evaluated.

We need stronger partnerships between training institutions and industries, not just tourism, but for emerging industries and those that can be expanded. We need structured consultations, not just at the policy level, but at the curriculum design stage.

Everyone should have a voice in shaping what is taught, how it’s delivered, and what practical experiences are included. This is how we build a truly demand-driven education system.

To be fair, FNU has indicated an interest in revisiting how the levy is being used. The University has submitted a paper to the Ministry of Education to push for changes.

That’s a good start. But now we need to see more action because there are 2 Bills being pushed that have their own designs on this same levy that is all about using funds that were never theirs to have access to in the first place. Certainly not without having first consulted with the employers who are paying for this.

It is time for transparency. Employers should know exactly where their money is going and how it is benefiting their staff and their business.

It is time for accountability. We cannot accept a situation where we’re effectively double-paying—once through the levy, and again through in-house training and retraining.

We are also mindful of the current legislative landscape. We are part of the Fiji Commerce and Employers Federation (FCEF) and others that have been invited by the Parliamentary Standing Committee on Economic Affairs to make submissions on the Work Care Bill 2025 (Bill No. 7) and the Accident Compensation (Amendment) Bill 2025 (Bill No. 8). These are important pieces of legislation, and they will have implications for employers across the country. We intend to participate fully in these discussions and represent the interests of our members.

But even as we engage with these Bills that we did not contribute to, we must also keep our eyes on the broader picture because all these things are interconnected.

Compensation schemes and workplace safety are critical, but they must be balanced with our responsibility to ensure the workforce is equipped, prepared, and supported to succeed. Otherwise, we’re simply treating symptoms rather than curing the disease.

So, what are we asking for?

We are asking Government to review the current allocation model of the FNU Employer’s levy that everyone appears keen to access for their own purposes. At a minimum, a significantly larger portion must be returned to its original purpose: training.

We are asking educational institutions to open their doors to deeper, more sustained partnerships with the industry stakeholders.

We are asking for regular reviews of training content and outcomes to ensure relevance and effectiveness.

And we are asking for a national conversation about workforce development—not just as a budget line, but as a strategic investment in Fiji’s future.

Tourism doesn’t just sell beds and flights. We sell experiences. Those experiences are created by people—people who must be trained, supported, and empowered to shine.

This gets reinforced and polished in training. And we must ensure that training reflects the reality of where Fiji’s industries are moving to, with productivity and efficiency that support our collective ability to compete globally and support a diverse and adapting economy.

To the employers out there: your voice matters. If you’ve been frustrated with having to retrain graduates or not seeing your employment levy dollars at work, now is the time to speak up. Engage in the consultation process. Submit your concerns. Attend the upcoming Work Care Bill discussion. Be part of the solution.

We owe it to our staff, our industries and our country’s economic future to ensure we are committed to investing in our people.