The Fijian Competition and Consumer Commission continues to receive complaints of illegal rent increment despite the rent freeze being in place.
FCCC Chief Executive, Joel Abraham says some landlords are now adding new charges to the existing rent.
He says landlords are becoming quite creative nowadays.
“By putting in other charges such as maintenance fees and levying a maintenance fee of say $50 extra per month because they can’t call it a rent increase so a maintenance fee has been imposed unilaterally.”
The CEO says such issues have come under their radar and the Commission is currently looking into the matter.
Fiji Hotel and Tourism Association (FHTA) chief executive officer Fantasha Lockington at media workshop yesterday. Photo Laiseana Nasiga
Fiji Hotel and Tourism Association (FHTA) wants Fiji Revenue and Customs Service (FRCS) to regulate the Airbnb market.
While FRCS said it will respond at a later date, FHTA chief executive office Fantasha Lockington said the Airbnb market has become a concern for the tourism industry because it was not regulated.
She told a media workshop run by the association: “It’s good to have more beds and accommodation available for an increasing tourism market but it is not regulated- meaning there is no occupational health and safety requirements, there is no cleanliness requirement, there is no safety requirement, there’s just no requirement, and they do not pay the taxes that the tourism industry pays.
“We have been saying to FRCS to take a look at what Australia and New Zealand are doing.
“What New Zealand does, whichever municipalities the Airbnb is in, the council would tell them that they are in a residential area running a commercial business, therefore they must pay for commercial rates”
Mrs Lockington said regulations was good because it keeps people and tourists safe.
“What FRCS doing about the Airbnb people, how come they are not regulated?
“What if someone falls down and cracks their head in the swimming pool. what are you going to do?
“Regulations are good because it keeps people safe and businesses safe,” she added
The Fiji Hotel and Tourism Association has raised concerns regarding the increase in unregulated AirBnB’s in Fiji.
FHTA Chief Executive Fantasha Lockington says while AirBnB’s provide similar services as hotels, they are spared from all the regulatory requirements.
“Many of them are probably doing the right thing, but our point is that they’re not regulated, they don’t pay the taxes that the tourism industry pays. They’re not having to be compliant with all the regulatory requirements, the tourism industry is and so that, that seems to us to be two standards really.”
Despite AirBnB’s and Hotels in Fiji providing the same services, the Fiji Hotel and Tourism Association sees it unfair that one is doing all the things that the country’s regulatory authorities require, and one is simply providing the service without being regulated.
Lockington says it’s important that all service providers such as hotels and AirBnB’s are regulated to ensure guests are provided a safe environment.
People selling properties without proper license and failure to disclose information to potential buyers.
These are some of the challenges faced by the Real Estate Licensing Board.
Major discussions are expected to be held around these issues at next weeks Real Estate National Conference.
The theme for this year’s conference is ‘Resolving Challenges in Real Estate’.
REALB Chair Dr. Abdul Hassan says they’ve been actively involved in road shows, talanoa sessions and public consultations around the country.
He adds they discovered several issues which remains a strong challenge for REALB during the consultation.
Hassan says during the conference, REALB and the other stakeholders will be able to find solutions to the challenging issues in the real estate sector.
“The agents would be able to enhance their knowledge from the speakers who would cover on issues affecting real estate. We will have speakers from various organizations including the public and private sectors. There would be four sessions and at the end of each session, questions and answers would be allowed,”
More than 96 real estate agents and salesperson are expected to attend the conference.
The Consumer Council of Fiji received 54 complaints from 1st January last year till date against some residential landlords who are trying to illegally increase rent.
They say, unfortunately when tenants refuse to pay the increased rent or report the matter to the Council, the landlord hands them an eviction notice using the excuse for renovations.
They add such tactics are used to suppress tenants from exercising their legal rights and to smartly increase the rent to unsuspecting new tenants.
The Council is reiterating to landlords that they must provide duly executed tenancy agreements and receipts for all rent payments to tenants.
The Council is also reminding tenants to act responsibly and read and understand the tenancy agreement before signing and moving into the rental property.
Meanwhile, the Fijian Competition and Consumer Commission have announced the extension of the rent freeze policy which will now run till the 31st of December this year.
DR MAHENDRA REDDY [3RD FROM LEFT] DURING THE OPENING OF THE AFRICAN CARIBBEAN PACIFIC (ACP) AND EU SHARING AND NETWORKING EVENT IN NADI TODAY [SOURCE: FIJIAN GOVERNMENT]
The private sector plays a crucial role in economic growth says Acting Minister for Foreign Affairs Dr Mahendra Reddy.
While opening the African Caribbean Pacific (ACP) and EU Sharing and Networking Event in Nadi today, Dr Reddy stressed that the private sector needs encouragement and support as it is also the engine for job creation.
“The government provides the public infrastructure, we provide an enabling environment but at the end of the day the private sector must lead the growth for the development to be sustainable.”
Dr Reddy says while the meeting targets ACP stakeholders and other beneficiaries they must first focus on the small and micro medium enterprises.
Private sector representatives present during the three-day conference include micro-small-medium enterprises, financing institutions and investment promotion authorities from the Pacific Region.
From left:International Monetary Fund Advisor – Executive Director Lanieta Rauqeuqe, IMF Economist Sio Guo, IMF Mission Chief Pablo Murphy Lopez, IMF Executive Director Juda Agung, IMF Resident Representative Tubagus Feridhanusetyawan [Photo: IMF Twitter]
The Fijian economy will recover next year where growth will be faster because the tourism sector will have a better year as New Zealand and Australia are expected to get stronger, and the Fijian government is also making public debt reduction a priority in the current budget.
This has been highlighted by International Monetary Fund’s Mission Chief, Pablo Lopez Murphy at the Global Developments and Prospects: Implications for Fiji Seminar at the Reserve Bank last night.
Murphy says economic growth in Fiji has been about 1% this year but that is estimated to increase to about 1.8% next year.
He says for further improvements the government should try to improve the business environment for private sector which simply means trying to promote private investment.
Murphy says the government has provided significant support to the economy particularly after Tropical Cyclone Winston but the focus should be more on the private sector and for that to happen an improvement in the business environment will be helpful.
He says the government has made it clear in the budget that reducing public debt is a priority.
Murphy says he is confident that the government will go in that direction.
Attorney General Aiyaz Sayed-Khaiyum says the rate of homeownership in Fiji is extremely low.
He says most of the young people in the country don’t own their own homes.
Speaking at the Attorney General’s Conference, Sayed-Khaiyum says when you have a population-base where 50% of the Fijian population today is below of the age of 27 years and 70% the Fijian population is below the age of 40 years, it has enormous implications in terms of their empowerment and access to assets to build a strong economic base.
He says one of the key aspects of living with dignity is owning your own home at the very least one and Fiji is not doing well in that space.
The Attorney General then suggested if Fiji was mature enough for strata titling which is a form of ownership for multi-level apartment blocks and subdivisions with shared areas.
He says Fiji has strata titling but it is high end.
Sayed-Khaiyum says everyday Fijians do not own these strata titles.
He also asked lawyers to think about the ramifications of strata titling in the country.
Sayed-Khaiyum also talked about a case where a family lives in a squatter settlement but was renting out their house in another area.
Sayed-Khaiyum says those lawyers who are advising insurance companies should look at whether there are products available in the Fijian market for individualised strata titling.
An artist impression of the newly launched TISI Sangam Fiji Foundation retirement villa project.
The TISI Sangam Fiji Foundation yesterday launched its new $3.4 million project in Suva.
The project consists of 16 Retirement Villas in a freehold 54 acre land in Nawai, Nadi.
The retirement village project was launched by TISI Sangam Fiji Foundation President Sadasivan Naicker and Chairman Sanjeev Mudaliar at the Suva Sangam Hall in Samabula, Suva.
TISI Sangam Fiji Foundation chairman Sanjeev Mudaliar said each two bedroom villa would cost approximately $295,000.
“In terms of pricing, these are approximate pricing and they are still subject to making a few adjustments,” Mr Mudaliar said.
“There is no retirement village of this magnitude in Fiji at this stage. This would be so affordable. The whole idea is it for people who are retiring,” he said.
“There are people who have children overseas who need better lifestyle for their parents.”
Expressions of interests
He said after the launch they would welcome expressions of interest from the public on the new villas.
“This would be an opportunity for the first 16 to register their interest in the new homes.
“Already there have been a lot of interest from people overseas for people that have been acquiring and reserving the two bedroom villas for their moms and dads.
“We need everyone to know that this is not restricted to Sangam families only, it is open to anyone.”
Project funding
Mr Mudaliar said the first phase of the project that includes 16 villas is estimated to cost more than $3m.
“I think it’s a good time for us to inject this into the economy,” he said.
“In terms of funding. I think many banks will be interested given the way things are and which bank would provide the best deals for us.
He said Sangam was in a position to self-fund the project as well.
A NUMBER OF LEGAL AND SOCIAL ISSUES HAVE TO BE TACKLED TO MAKE THE GOVERNMENT PLANS FOR AFFORDABLE HOUSING A SUCCESS.
A number of legal and social issues have to be tackled to make the government plans for affordable housing a success.
Discussions at the Annual Attorney General’s Conference today centered around the International Finance Corporation’s partnership with the government to build cheap high rise apartments for low-income earners.
IFC Investment Officer Ritesh Vij says new challenges will come with the construction of multi-storey apartments.
“It requires cultural and social acceptability to this concept. In all countries whether Asia, Europe or the US. Transitioning from horizontal living to vertical, was never easy. The government at different stages had to bring the right elements to strengthen the acceptability of vertical living.”
Vertical housing is needed in the Suva/Nausori corridor due to rapid urbanization and lack of housing – and new privately run-flats are not for the average family.
“They are all not targetted at affordable housing so it was out of reach for the majority of the population. What we need to consider is how to make it work by making it affordable”
The IFC is also working on laws to allow Fijians to own units, tenureship and community by-laws for people living in a complex.
Discussion is also needed on how these complexes will be run.
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