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Adrenalin Fiji Restructures

Adrenalin Water sports Fiji, a major water and adventure sports company associated with our tourism industry, has announced a restructure of its business on Denarau Island. This restructuring will lead
20 Apr 2016 11:05
Adrenalin Fiji Restructures
Adrenalin Fiji will close its beachside watersports operations located at Wyndham and Hilton Fiji Beach Resort on Denarau Island.

Adrenalin Water sports Fiji, a major water and adventure sports company associated with our tourism industry, has announced a restructure of its business on Denarau Island.

This restructuring will lead to the subsequent closure of its beachside watersports operations located at Wyndham and Hilton Fiji Beach Resort on Denarau Island.

Adrenalin Fiji general manager, Liza Walsh, said this closure will take affect by the end of this week.

Adrenalin Fiji did not wish to disclose any further information on the reason for the closure or job losses etc.

This news of the closure of its two Denarau operations comes amidst news of Adrenalin Fiji closing its operations permanently soon.

While Adrenalin Fiji has so far refused to make any comments on the closure of its business, industry sources have indicated the reason is the increasing taxes being levied on the operations.

As part of the 2016 National Budget announcement, Government had announced that the Service Turnover Tax will increase from five per cent to 10 per cent.

It addition, for those businesses paying the Service Turnover Tax, a six per cent environmental levy was also imposed.

As a result, it is understood to have become unsustainable and not viable for Adrenalin Fiji to continue operations given the increasing cost.

Apart from them paying the taxes, as a concessionaire, Adrenalin Fiji have to pay the hotels and thus, the overall costs became too much for the company.

Government comment was not immediately available as this was a policy decision.

However, an informed Government source said this issue had not been raised with the Government.

Fiji Hotel and Tourism Association President, Dixon Seeto, said the exit or departure of any major tourism company especially one which has special activities like water sports etc – it is sad to see them go.

“I suppose they would have their own reasons for this but it will be a major loss for the industry,” he said.

“There are people who come to Fiji for water sports and they are after all a major water sports company. The marine activity is pretty much a big part of what Fiji has to offer.”

Feedback:  rachnal@fijisun.com.fj

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