Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697791560629.pdf (Fiji)
Annual Report 2013 1 CONTENT PAGE Letter to the Minister About Tourism Fiji Summary of Performance 2013 2013 Key Visitor Statistics 2013 Visitor Arrivals In Numbers Overview of Key Achievements Marketing Activities in 2013 Corporate Governance Financial Reports I II- III IV - V VI VII VIII-IX X - XI XII XIII 25 July 2019 Hon.
Premila Kumar Minister for lndustry,Trade & Tourism, Local Govt, Housing & Community Development Level 3, Civic Towers Victoria Parade SUVA Dear Honourable Minister, RE: TOURISM FIJI ANNUAL REPORTS FOR 2013 On behalf of the Tourism Fiji board of Directors, I am pleased to present the Company’s Annual Report for 2013 and as required under Section 58 of the Public Enterprise Act, 2019.

The Report incorporates the organisation’s operational achievement and audited accounts for the year ending December 2013.
The Board of Directors, Management and staff would like to express their sincere appreciation to you and the Government for its on-going support and look forward to continuing this in 2020 and beyond.

Yours sincerely, Andre Viljoen CHAIRMAN I II ABOUT TOURISM FIJI Who are we?

Located in the heart of the South Pacific, Fiji is blessed with 333 tropical islands and is a popular tourism destination for visitors from around the world.
Tourism Fiji is a statutory body fully funded by the Fiji Government and is the destination marketing arm of the Fijian Government.
Tourism Fiji is governed by the Tourism Fiji Act 2009 which specifies its role as: “Tourism Fiji is to ensure that the Fiji Islands is promoted and marketed as a tourist destination for the purpose of maximizing sustainable and long-term benefits to the Fiji Islands” The tourism industry has contributed significantly to Fiji’s economy and is the country’s largest foreign exchange earner.
The industry provides employment directly and indirectly to many Fijian people and is the fastest growing industry in terms of employment.

In 2013, Fiji welcomed 658,000 international visitors.

The value of tourism earnings across the year was estimated by Bureau of Statistics as $1.3bn The importance of tourism to the Fiji economy drives Tourism Fiji to continue to deliver world-class marketing and promotional activities to attract more visitors to our shores.
Our Markets and Offices Tourism Fiji has a global team that undertake marketing and promotional activities to attract international visitors to Fiji.

Our offices are located in: - - - - Australia New Zealand North America (USA & Canada) South Korea We have Market Representatives in: - - - - United Kingdom Europe China India III SUMMARY OF TOURISM FIJI’S PERFORMANCE 2013 The highlight for 2013 was the launch of the much-anticipated global brand campaign, Fiji – where happiness finds you.
This was successfully launched across all markets.

The repositioning was developed following extensive research and consultation with local and international stakeholders.
The objective of the rebranding was to globally position Fiji as a unique destination that embodied the following pillars: • • • The people - make you smile and feel happy The place - a serene and tropical environment where happiness finds you The experience - a unique and authentic Fijian culture To strengthen the Tourism Fiji team and support organizational strategy, structural changes occurred across the organization during 2013.
Regional Directors in Australia and New Zealand were appointed and a new role of Director of Global Marketing was created in Tourism Fiji’s Head Office.

Tourism Fiji’s office in Europe was also closed in 2013.

Importantly a further structural change was undertaken to centrally manage the marketing activities of the organization from the Head Office in Fiji.

In June 2013 Fiji’s national carrier made the announcement to change their name from Air Pacific to Fiji Airways.
The rebrand took the organization back to its previous 1951 name and this coincided with them also welcoming three brand-new A330 aircraft.

In 2012 Fiji was impacted by several natural disasters.

This included two major floods and Cyclone Evan.

However, the impact of these natural disasters was felt by the tourism industry in 2013.

The consequence being a slight decline in the visitor numbers recorded in 2012.
IV 2013 VISITOR ARRIVALS IN NUMBERS In 2013 Fiji received 658,866 international visitor arrivals, representing a 0.4% decline from the previous year.

However, encouragingly visitor earnings had a slight 1% increase in 2013 contributing $1.312bn to the economy.
In 2013, visitor arrivals from Australia contributed 52% of total arrivals, followed by New Zealand (16%), North America (10%), Continental Europe (5%), China + Hong Kong (4%), United Kingdom (2%), Rest of Asia (2%), Japan (1%), India & Singapore (0.5%) and all other countries at 7%.

In terms of growth by volume, Australia contributed the most at 2,272 additional visitors followed by New Zealand (2,256), Continental Europe (846), India (375), Japan (261), Singapore (223) and all other countries (2,454).
Markets that declined were North America (2,336), China + Hong Kong (3,151), Rest of Asia (4,035) and UK (889).

V 2013 KEY VISITOR STATISTICS In 2013 81% of our visitors arrived for a holiday, with 6% visiting friends and relatives and 6% travelling for business.

2013 KEY VISITOR STATISTICS - BY PURPOSE OF VISIT SOURCE: 2013 FIJI BUREAU OF STATISTICS VISITOR EARNINGS The average length of stay varied depending on purpose of travel, with most holiday makers staying around 7 nights.
AVERAGE LENGTH OF STAY BY PURPOSE OF VISIT VI SOURCE: 2013 INTERNATIONAL VISITOR SURVEY DATA 2013 VISITOR ARRIVALS IN NUMBERS Length of stay varies by country with visitors from the UK & Europe staying longer that their short haul counterparts, and visitors from North America and Canada tending to choose shorter visits.

AVERAGE LENGTH OF STAY BY COUNTRY Visitor spend varied across regions.

Visitors from the UK and Asia, with the exception of China and Hong Kong, spent higher amounts than average.
2013 AVERAGE SPEND BY COUNTRY SOURCE: 2013 FIJI BUREAU OF STATISTICS VISITOR EARNINGS VII OVERVIEW OF KEY ACHIEVEMENTS Brand launch Tourism Fiji’s focus for 2013 was the implementation of Fiji’s new brand positioning across its international markets.

The new positioning of “Fiji: Where happiness finds you” was successfully launched in 2012 following an extensive brand review.

Research undertaken for the review had identified the need for a message that showed differentiation and a clear identity for Fiji.
The research had showed that most travelers knew Fiji for it’s beautiful beaches and as a relaxing, tropical destination.

While these brand associations were not a bad thing, the need was identified for a stronger point of difference.

Importantly, the research also highlighted the strength of Fiji’s warm and welcoming hospitality as a defining characteristic of the destination.
The research showed there was something about the genuine warmth and welcoming nature of Fijian people that enriched peoples’ visit to Fiji and left an enduring impact.

With that the new brand was launched, Fiji: Where Happiness Finds You.

Global Branding • When You Think About It, The Whole World’s Looking For Happiness.

• But Actually, It’s The People Who Are Trying The Least - Who Have The Most Of It.

• Our Strategy: Show The World That Fiji Will Make Them Happier Than Anywhere Else.
The happiness proposition was made up of three distinct elements that combined to create Happiness for the visitor.

This is demonstrated in the diagram on the right.

VIII In 2013, new creative was rolled out, and Tourism Fiji launched their new website in April 2013.

The creative took a fresh approach, showcasing people and experience, and used contemporary new branding.

Some examples of this are below: In 2013, the new positioning was implemented across each of Tourism Fiji’s international markets.
The major launch investments occurred in our short haul markets of Australia and New Zealand, with our long-haul markets focusing more on trade and PR activity.

The results of the short-haul launch activities are highlighted below.

Australia • Activity: A “Happiness Campaign” was launched just before International Day of Happiness in March 2013 for four weeks.

The aim was to build a consumer database, share the Fiji message through social media and achieve engagement from around 100,000 followers.
• Result: The campaign reached 119,666 Australian fans and the content was talked about by 5,260 people in Australia.

New Zealand • Activity: A digital advertising campaign was implemented at IRB Hertz Sevens in Wellington on 1 & 2 February 2013.

• Result: The advertising reached an audience of approximately 760 million people globally on TV while 77,000 people also attended the 2-day tournament.

• Activity: The new brand was also launched at the Flight Centre Expos in Christchurch and Auckland.
• Result: More than 20,000 visitors attended each show where the new branding was present.

IX MARKETING ACTIVITIES IN 2013 Brand Advertising Tourism Fiji undertakes brand advertising within all our international markets to ensure that Fiji remains top-of-mind as a holiday destination and is perceived as a highly desirable and aspirational destination.

In 2013 Tourism Fiji rolled out new brand assets across its marketing collateral.
Social Media and Digital Marketing Tourism Fiji markets itself heavily across digital channels such as its website and social media platforms.

These are critical platforms not only for promoting the destination, but also for sharing valuable content with potential visitors to influence their decision to visit Fiji.

In 2013 Tourism Fiji launched a new website and focussed on growing social media followers.
Trade Engagement Tourism Fiji works closely with our trade partners to ensure they have the understanding, resources and distribution in place to effectively market and promote Fiji to potential visitors through their own activities.

Through workshops, forums, meetings and presentations, Tourism Fiji ensures that our trade partners are well- informed and equipped to promote Fiji to their clients.
In 2013 Tourism Fiji ran a number of workshops and training sessions, some highlights of which included: • Training 30 London Trailfinders personnel in August 2013 Trade Partnerships Through trade partnerships Tourism Fiji amplifies its activities via co-operative campaigns and joint ventures.

These are undertaken in conjunction with airlines, retailers, wholesale partners and contributing industry.
In 2013 Tourism Fiji ran a number of trade co-operative campaigns, some highlights of which included: • Tourism Fiji and Air Pacific Flight Centre campaign resulted in 22,000 booked passengers in and out of Australia • Go Holidays Fabulous Fiji campaign with Harvey World Travel, Air Pacific and Starwood Fiji in New Zealand resulted in 800 passengers Trade Shows and Events Tourism Fiji participates at tradeshows within key international markets to engage and network with a large representation of the trade travel to develop new relationships and identify new partnerships with organizations.
Tourism Fiji also hosts roadshows that bring buyers together with invited tourism industry representatives from Fiji.

In 2013 Tourism Fiji ran a number of trade shows and event, some highlights of which included: • Wedding Workshops in Australia, March 2013 • Bula Marau NZ Roadshow, March 2013 • Bula Marau USA and Canada Roadshow, April 2013 • Bula Marau India, Jan 2013 X Trade Famils Fiji provides a remarkable visitor experience that has to be seen to be believed.
By providing our trade partners with an opportunity to experience the destination they are then able to use this knowledge and understanding of the destination to better sell holidays to Fiji.
In 2013, Tourism Fiji hosted a number of Trade Famils, some highlights of which were: • November Mega Educational – 150 Australian agents • USA Health & Wellness famil in August 2013 • Indian agents famil in October 2013 Consumer Shows and Events Tourism Fiji attends some consumer shows and events to interact directly with consumers and showcase the products and experiences available within the destination.
In 2013, Tourism Fiji attended a number of consumer shows and event, some highlights of which included: ITB: The World’s biggest trade/consumer travel fair • • Attendance at Japanese consumer show in conjunction with Pacific Island Center XI CORPORATE GOVERNANCE Board of Directors and Executive Management - 2013 Chairman Director Director Director Director Director Board Secretariat 2013 Tourism Fiji Board of Directors David Pflieger (Term expired on 1 May 2013) Elizabeth Powell (Appointed Acting Chair on 18 March 2013) Shane Cunning Lawrence Tikaram Josephine Smith-Moffat Faiyaz Koya Jay Shree Raniga 2013 Tourism Fiji Executive Management Chief Executive Officer Director Global Marketing Events Director Rick Hamilton Kenneth Freer Sally Cooper Chief Financial Controller Vimlesh Magan Manager Fiji Thomas Valentine Regional Director Australia Paresh Pant (Term expired on 30 June 2013) Regional Director Australia Carlah Walton Regional Director New Zealand Sala Toganivalu (Term expired on 31 March 2013) Regional Director New Zealand Wayne Deed Regional Director North America Ilisaveci Matatolu (Term expired on 31 May 2013) Acting Regional Director North America Sera Cawanibuka Regional Director Korea Daisy Park Regional Representative - UK/Ireland Jane West Regional Representative – India Pranav Kapadia Regional Representative – Europe Karin Zwires (Term expired on 22 November 2013) XII FINANCIAL REPORTS XIII 15 OFFICE OF THE AUDITOR GENERAL 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P.O.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 Fax: (679) 330 3812 E-mail: info@auditorgeneral.gov.fj Website: www.oag.gov.fj File:1254 26 May 2017 Mr. Andre Viljeon Board Chairman Tourism Fiji PO Box 9217 NADI Dear Sir TOURISM FIJI AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 Audited financial statements for Tourism Fiji for the year ended 31 December 2013 together with my audit report on them are enclosed.
Particulars of the errors and omissions arising from the audit have been forwarded to the Management for necessary actions.

Yours sincerely Ajay Nand AUDITOR GENERAL Encl.
Cc: CEO - Tourism Fiji TOURISM FIJI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 TOURISM FIJI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 Content Page Directors’ report Independent auditor’s report Statement of comprehensive income Statement of changes in accumulated funds Statement of financial position Statement of cash flows Notes to the financial statements 19 20 - 26 - 36 TOURISM FIJI DIRECTORS’ REPORT 31 DECEMBER 2013 The Board of Directors present their report together with the: financial statements of Tourism Fiji (“the entity”) for the year ended 31 December 20l3 and the auditors’ report thereon.
Directors The following were directors of the entity during the year and up to the date of this report: Mr. Andre Viljeon Mr. Truman Bradley Mr. Geoff Shaw Mr. David Pflieger Mr. Shaheen Ali Mr. Dixon Seeto Mr. Howard Politini Mr. Shane Cunning Mr. Lawrence Tikaram Ms. Josephine Smith Ms. Elizabeth Powell Mr. Faiyaz Koya State of Affairs Chairman Chairman (Term expired on 09/06/2016) Deputy Chairman Chairman (Term expired on 01/05/2013) Director Director Director Director (Term expired on 21/01/2016) Director (Term expired on 21/01/2016) Director (Term expired on 21/01/2016) Director (Term expired June 2014) Director (Term expired on 08/08/2014) In the opinion of the Directors, the accompanying statement of the financial position gives a true and fair view of the state of affairs of the entity as at 31 December 2013 and the accompanying statement of comprehensive income, statement of changes in accumulated funds and the statement of cash flow gives a true and fair view of the results and cash flows of the entity for the year then ended.
Principal Activities The principal activities of the entity during the financial year was developing marketing and sales objectives to stimulate increased visits to Fiji by people of other countries, coordinate overseas promotional activities and to ensure Fiji’s marketing operations are innovative, effective and efficient to maximize available growth.

There has been no change in the nature of these activities during the year.
Events subsequent to balance date There has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors , to affect significantly the operations of the entity, the results of those operations or the state of affairs of the entity in the subsequent financial years.
Notwithstanding the opinions and representations contained in the above Director’s Report, the accompanying financial statements of Tourism Fiji (TF) as of and for the year ended 31 December 2013 represent the state of affairs, results and cash flow of Tourism Fiji during a period when the undersigned were not directors of Tourism Fiji and consequently, the undersig ned have no knowledge of such matters.
The accompanying financial statements were not subjected to an audit or review by the undersigned and accordingly we are unable to, nor do we purport to express an opinion, a conclusion, nor provide any assurance regarding their accuracy Signed in accordance with a resolution of the directors Dated at Nadi this............................day of...........................2017 ......................................................... Chairman ...................................................... Director 19 OFFICE OF THE AUDITOR GENERAL 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P.O.
Box 2214, Government Buildings Suva, Fiji Independent Auditor’s Report Report on the Audit of the Financial Statements Opinion Telephone: (679) 330 9032 Fax: (679) 330 3812 E-mail: info@auditorgeneral.gov.fj Website: www.oag.gov.fj I have audited the financial statements of Tourism Fiji, which comprise the statement of financial position as at 31 December 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the accompanying financial statements present fairly the financial position of Tourism Fiji as at 31 December 2013, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS).

Basis of Opinion I conducted my audit in accordance with International Standards on Auditing (ISA).
My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.
I am independent of Tourism Fiji in accordance with the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Fiji and I have fulfilled other ethical responsibilities in accordance with these requirements and the IESBA Code.

T believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Responsibilities of the Management and Directors for the Financial Statements The management is responsible for the preparation and fair presentation of these financial statements in accordance with IFRS and Fiji Visitors Bureau Act, 1985 and for such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Tourism Fiji’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management intend to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for overseeing the Tourism Fiji’s financial reporting process Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s repo1t that includes my opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with ISA, I exercise professional judgment and maintain professional skepticism throughout the audit.

I also: • • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Tourism Fiji’s internal control.
20 • • • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of the management’s and directors’ use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Tourism Fiji’s ability to continue as a going concern.
If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures, are inadequate, to modify my opinion.

My conclusions are based on the audit evidence obtained up to the date of my auditor’s report.

However, future events or conditions may cause Tourism Fiji to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the management and directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Fiji Visitors Bureau Act, 1985 in my opinion: a) proper books of account have been kept by Tourism Fiji, so far as it appears from my examination of those books, b) the accompanying financial statements: (i) are in agreement with the books of account; and (ii) to the best of my information and according to the explanations given to me, give the information reauired.
bv the Fiji Visitor’s Bureau Act, 1985 in the manner so required.
Ajay Nand AUDITOR GENERAL Suva 26 May, 2017 21 TOURISM FIJI STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013 Government grant Co-operative promotion and advertising Other operating income Employee salaries and benefits Operating and administrative expenses Selling and marketing expenses Depreciation expense Surplus from operations Finance income Surplus for the year Other comprehensive income Realised exchange (loss)/gain Unrealised exchange loss Total comprehensive income for the year Notes 5 6 7(ii) 7(i) 7(iii) 2013 $ 2012 $ 23,043,478 23,043,479 1,731,122 928,690 56,739 209,077 24,831,339 24,181,246 (2,205,811) (2,183,391) (1,461,573) (1,719,961) (18,260,814) 209,077 (I 14,936) (153,800) 2,788,205 209,077 8 16,532 7,911 2,804,737 2,925,549 (90,693) 34,455 (67,554) (273,902) 21,646,490 2,686,102 The accompanying notes form an integral part of the statement of comprehensive income 22 TOURISM FIJI STATEMENT OF CHANGES IN ACCUMULATED FUNDS FOR THE YEAR ENDED 31 DECEMBER 2013 Accumulated Funds Balance at I January Profit for the year Balance at 31 December Notes 2013 $ 2012 $ 6,954,116 4,268,014 2,646,490 2,686,102 9,600,606 6,954,116 The accompanying notes form an integral part of the statement of changes in accumulated funds.
23 TOURISM FIJI STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 Non-Current Assets Property, plant and equipment Term Deposit Refundable deposits Total non-current assets Current Assets Cash at bank and on hand Prepaid expenses Taxes refundable Inventories Other receivables and advances Total current assets Total Assets Accumulated funds Total Accumulated Funds Current Liabilities Employee entitlements Expenses accrued Income in advance Other payables and accruals Total current liabilities Total Liabilities Notes 2013 $ 2012 $ Total Accumulated Funds and Liabilities 13,494,345 10,082,249 The accompanying notes form an integral part of the statement of financial position.
For and on behalf of the Board and in accordance with the resolution of the directors ......................................................... Chairman ...................................................... Director 24 TOURISM FIJI CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2013 Cash flows from operating activities Cash receipts from Government and related stakeholders Cash payment to employees & other parties Cash generated from operations Interest received Cash flows from operating activities Cash flows from operating activities Acquisition of property, plant and equipment Proceeds from sale of property, plant and equipment Cash flows from operating activities Notes 2013 $ 2012 $ 24,957,433 24,311,260 (20,420,497) (19,694,741) 4,536,936 4,616,519 16,532 7,911 4,553,468 4,624,430 (279,001) (25,182) 28,500 (250,501) (25,182) Effect of exchange rate changes on cash and cash equivalents (158,961) (239,447) Net increase in cash Cash and cash equivalents at 1 January 4,144,006 4,359,801 8,354,806 3,995,005 Cash and cash equivalents at 31 December 10 12,498,812 8,354,806 The accompanying notes form an integral part of the consolidated statement of cash flows.
25 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013 1.

Reporting entity Report on the Audit of the Financial Statements Tourism Fiji (the ‘entity’) is a statutory body fully funded by the Fiji government and is the marketing arm of the Ministry of Tourism.

The entity has regional offices abroad including Australia, New Zealand, United States of America and Korea.

The address of the entity’s principal place of business is Suite 107 Colonial Plaza, Namaka, Nadi.
The principal activities of the entity include marketing objectives to stimulate increased visits to Fiji by people of other countries, coordinate overseas promotional activities and to ensure Fiji’s marketing operations are innovative, effective, and efficient to maximise available growth.. 2.
Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (JFRSs) adopted by International The financial statements were approved by the Board of Directors on 25/4/17 (b) Functional and presentation currency The financial statements are presented in Fiji dollars, which is the entity’s functional currency.
(c)Use of estimates and judgments The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes: Note3 (b) Note3 (c) Note 3 (d) Note 3 (e) Note 3 (f) - - - - - Property, plant & equipment Financial instruments Impairment Employee benefits Other payables and provisions 3.
Significant accounting policies The principal accounting policies adopted by the entity are stated to assist in a general understanding of the financial statements.

(a) Foreign currency Foreign currency transactions At the end of the financial period, transactions in foreign currencies are translated to Fiji dollars using the average exchange rates for the year.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Fiji dollars at the exchange rate at that date.

The foreign currency gain or loss on translation are recognised in the statement of financial performance.

(b) Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
26 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment.
These are included in the statement of financial performance Subsequent expenditure The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit embodied within the part will flow to the entity and its cost can be measured reliably.

The cost of the day-to-day servicing of property, plant and equipment are recognized in the statement of financial performance as incurred.
Depreciation Depreciation is recognised in the statement of financial performance on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment.

The Depreciation rates for the current and comparative periods are as follows: Motor vehicles Office equipment Furniture and fittings 25% 5-50% 5-25% Depreciation methods, useful lives and residual values are reassessed at each reporting date.
(c) Financial instruments (i) Non derivative financial instruments The entity initially recognises loans and receivables and deposits on the date that they originate.

The entity derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
Any interest in transferred financial assets that is created or retained by the entity is recognised as a separate asset or liability.

Financial assets and liabilities are offset, and the net amount presented in the statement of financial position when, and only when, the entity has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
The entity has the following non-derivative financial assets held-to-maturity financial assets, loans and receivables and cash and cash equivalents Held-to-maturity financial assets If the entity has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity.

Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost less any impairment losses.

Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-to-maturity investments as available-for-sale, and prevent the entity from classifying investment securities as held-to-maturity for the current and the following two financial periods.
Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.

Such assets are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition loans and receivables are measured at amortised cost less any impairment losses.

Trade and other receivables Trade receivables and other assets are measured at initial recognition at fair value.
Subsequently, appropriate allowances for estimated irrecoverable amounts are recognised in the statement of financial performance when there is objective evidence that the asset is impaired.
27 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand for the purpose of the statement of cash flows Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into.

The entity’s financial liabilities include trade and other payables.
All financial liabilities, except for derivatives, are recognised initially at their fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial liability and subsequently measured at amortised cost, using effective interest method, unless the effect of discounting would be insignificant, in which case they are stated at cost.
(d) Impairment (i) Financial assets The carrying amounts of the entity’ s non-financial assets, inventories and property plant and equipment, are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated .

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash- generating unit”).

The entity’s corporate assets do not generate separate cash inflows.

If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount.

Impairment losses are recognised in the statement of financial performance.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units .and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(e) Employee benefits Superannuation Contributions are paid to a superannuation fund on behalf of employees to secure retirement benefits.
Costs are included in the statement of financial performance.

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expense d in the staten1ent of financial performance as the related service is provided.

(f) Other payables and provisions Other payables are non-interest-bearing and are stated at cost.
A provision is recognised in the statement of financial position when the entity has legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.

If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific t-o the liability.
(g) Revenue (i) Co-operative promotion and advertising Revenue from co-operative promotion and advertising is recognised in the statement of financial performance on an accrual basis.

28 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 (ii) Grant income An unconditional government grant is recognised in statement of financial performance as grant income when the grant is received.
(h) Finance income and expenses Financing income and expenses comprises of interest income on term deposit, bank charges and foreign currency gains or losses.

(i) Contingent liabilities and contingent assets A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the entity.
It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required, or the amount of obligation cannot be measured reliably.

A contingent liability is not recognised but is disclosed in the notes to the accounts.

When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain events not wholly within the control of the entity.

Contingent assets are not recognised but are disclosed in the notes to the accounts when an inflow of economic benefits is probable.

When inflow is virtually certain, an asset is recognised.
(j) Comparative information Comparative information has been restated where necessary to align with current year presentation.

Events after balance day effects have been shown against the retained earnings.

The relevant adjustments are shown in the Statement of Accumulated Funds as well as in the individual branches accounts.

(k) Inventories Inventories comprise of promotional items and are stated at cost.

Costs include invoice price plus associated costs.


Costs are assigned to individual items of inventory mainly on weighted average basis.

4.

Financial risk management Overview The entity’s operations expose it to financial risks that include liquidity risk, interest rate risk, market risk and credit risk.

The entity has exposure to the following risks from its use of financial instruments: l. Credit risk 2.

Liquidity risk 3.
Liquidity risk 3.

Market risk This note presents information about the entity’s exposure to each of the above risks, the entity’s objectives, policies and processes for measuring and managing risk, and the entity’s management of capital.

Further quantitative disclosures are included throughout these financial statements.

Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the entity’s risk management framework.
The entity’s risk management policies are established to identify and analyse the risks faced by the entity, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the entity’s activities.
The entity, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit risk Credit risk is the risk of financial loss to the entity if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the entity’s receivables from customers and investment securities.
29 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 Other receivables The entity’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.

The demographics of the entity’s customer base, including the default risk of the industry and country in which customers operate has less of an influence on credit risk.
Customers that fail to meet the entity’s benchmark creditworthiness may transact with the entity only on a prepayment basis.

The entity does not require collateral in respect of other receivables.

The entity establishes an allowance for impairment that represents its estimate of losses in respect of other receivables, deposits and investments.
The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified.

The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.
Credit risk concentrations are presented below: Other receivables and advances Investments - Term deposits 2013 $ 2013 $ 211,603 418,958 20,000 20,000 Liquidity risk Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due.
The entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the entity’s reputation.

The entity ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations.
2013 $ 2013 $ 2012 $ 2012 $ Less than 1 Year Less than 1 Year Less than 1 Year Less than 1 Year 12,498,812 211,603 8,354,806 418,958 17,473 20,000 12,710,415 37,473 8,773,764 16,297 20,000 36,297 733,888 2,817,242 247,183 3,798,313 596,073 2,230,238 154,811 2,981,122 Financial assets Cash at bank and on hand Other receivables and deposits Refundable deposits Investments - term deposits Financial liabilities Other payables and accruals Expenses accrued Employee entitlements 30 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the entity’s income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

5.

Other operating (expense) income Other income Commission 6.
Personnel expenses Salaries and wages - Non-Key Management Personnel Key management compensation - short term benefits Superannuation contributions Training and Productivity Authority of Fiji 2013 $ 39,119 17,620 56,739 2012 $ 175,898 33,179 209,077 2013 $ 2012 $ 1,002,077 1,092,531 1,121,615 1,014,740 75,146 6,973 68,802 7,318 2,205,811 2,183,391 The average number of employees during the year was: 29 31 31 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 7.
(i) Selling and marketing expenses Advertising & branding Information distribution Promotional materials Promotions Public relations Research and other marketing expenses Co-operative promotion & advertising Market representation Global retainers (ii) Operating and administrative expenses Assets disposals Exchange loss Audit fees Bank charges Board members remuneration and other related costs Cleaning materials Electricity Office expenses General insurance Medical insurance Travel insurance Maintenance grounds and buildings Maintenance/Leasing of office equipment Motor vehicle running expenses Freight and postage Printing and stationery Rent Staff relocation Staff training Subscription and advertising Telephone, facsimile and emails Travelling - local Travelling - overseas Uniforms Legal expenses Professional Fees SLA IT Agreement costs Contingency Disaster Recovery Costs Industry Liaison Fringe Benefit Tax 32 2013 $ 2013 $ 12,185,492 11,145,796 149,227 215,401 2,960,200 1,021,141 61,355 66,929 484,104 1,116,965 217,011 186,491 3,468,517 1,166,748 362,619 76,999 582,275 18,260,814 17,206,456 8,813 6,284 9,645 8,931 44,190 ll,106 ,573 1,719,961 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 (iii) Depreciation Expense Depreciation expense 8.
(i) Selling and marketing expenses Finance Income Interest Income 9.
(i) Selling and marketing expenses Cost 1,14, 936 153,800 16,532 7,911 Motor Vehicles Office Equipment Furniture & Fitting IT Hardware Renovation Total Balance at 1 January 2013 243,089 127,327 128,966 302,377 275,707 1,077,466 Effects of change in exchange rates Additions Disposals (939) 182,319 (377) 28,207 (1,294) 7,834 60,641 (73,671) (41,967) (12,106) (75,431) 811 (8,617) (10,416) 279,001 (203,175) Balance at 31 December 2013 350,798 113,190 123,400 288,398 267,090 1,142,876 Depreciation Balance at 1 January 2013 232,966 99,157 107,220 203,559 136,947 779,849 Effects of change in exchange rates (1,220) 13,969 (378) 11,723 (993) 9,106 684 44,212 (6,470) 35,926 Disposals (73,671) (40,442) (11,441) (71,125) (8,377) 114,936 (196,679) Balance at 31 December 2013 172,044 70,060 103,892 177,330 166,403 689,729 Carrying amount Balance at 1 January 2013 Balance at 31 December 2013 10,123 178,754 28,170 43,130 21,746 19,508 98,818 111,068 138,760 100,687 297,617 453,147 2012 Motor Vehicles Office Equipment Furniture & Fitting IT Hardware Renovation Total Cost Balance at 1 January 2012 241,183 165,908 153,356 468,321 275,341 1,304,109 Effects of change in exchange rates 1,906 Additions Disposals (368) 1,170 293 130 (1,527) 23,884 (39,383) (24,813) (188,301) 366 670 25,184 (252,497) Balance at 31 December 2012 243,089 127,327 128,966 302,377 275,707 1,077,466 Depreciation Balance at 1 January 2012 191,472 127,334 113,476 330,930 100,398 863,610 Effects of change in exchange rates Depreciation Disposals 891 40,603 (353) 11,092 238 12,033 (1,023) 53,747 224 (23) 36,325 153,800 (38,916) (18,527) (180,095) (237,5382 ) Balance at 31 December 2012 232,966 99,157 107,220 203,559 136,947 779,849 Carrying amount Balance at 1 January 2012 49,711 38,574 39,880 137,391 174,943 440,499 Balance at 31 December 2012 10,123 28,170 21,746 98,818 138,760 297,617 33 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 10.
Cash and cash equivalents Cash on hand Cash at bank Cash and cash equivalents in the statement of cash flows 11.

Term Deposit Term deposit $ 2013 $ 2013 1,000 12,497,812 12,498,812 773 8,354,033 8,354,806 20,000 20,000 The term deposit represents a bank guarantee given by Westpac Banking Corporation as securities over the entity’s transactions under the Customs Act.

The guarantee is covered by a lien over the term deposit of $20,000 held with the Bank.

The term deposit matures on 14 November 2014.

12.


Prepaid expenses Head office Sydney office Auckland office Los Angeles office 13.

Refundable Deposits Electricity deposit (HQ) Car park bond (Sydney) Office rental bond Office rental bond (LAX) 14.

Tues Receivables VAT receivable - Head Office OST receivable - Sydney Office OST receivable - Auckland Office I5.
Other Receivables & Advances Head Office Participation fees owed Fiji excellence awards Refundable taxes Other general advances Interoffice clearing accounts Rent receivable Participation fees owed Other receivables Participation fees owed Advances Participation fees owed Advances Advances Sydney Office Auckland Office LAX Office Korea Office 5,686 194,338 33,071 28,521 261,616 5,325 1,536 4,374 52 ,062 (1,201) 300 7,843 (1) (2) 128,875 10,517 60 34 211,603 418,958 $ 2013 $ 147,0ll 109,142 432,335 192,411 733,888 483,396 109,142 3,535 596, 073 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 16.
Employee entitlements This consists of salaries, leave and superannuation dues.

The breakdown is as follows: Salaries and annual leave dues Superannuation 17.

Expenses due Operating expenses Head office Sydney office Auckland office Los Angeles office Total Marketing expenses Head office Sydney office Auckland office Los Angeles office Tokyo office Korea Total TOTAL EXPENSES DUE 18.

Income received in advance Fiji office Sydney office NZ office USA office 19.
Other payables & accruals Fiji Revenue Customs Authority TAG - Funds plus interest VAT Payable Others 20.
Related parties (a) Directors Mr. Andre Viljeon Mr. Truman Bradley Mr. Geoff Shaw Mr. David Pflieger Mr. Shaheen Ali Mr. Dixon Seeto Mr. Howard Politini Mr. Shane Cunning Mr. Lawrence Tikaram Ms. Elizabeth Powell Mr. Faiyaz Koya Chairman Chairman (Term expired on 09/06/2016) Deputy Chairman Chairman (Term expired on 01/05/2013) Director Director Director (Term expired on 21/01/2016) Director (Term expired on 21/01/2016) Director (Term expired on 19/03/2016) Director (Term expired June 2014) Director (Term expired on 08/08/2014) The accompanying notes form an integral part of the statement of changes in accumulated funds.
TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2013 20.

Related parties (continued) (b) Transactions with key management personnel 1,000 773 Key management personnel comprise the Chief Executive Officer, Director of Marketing, Director of Finance and Regional Directors in Australia, New Zealand, USA and Japan.

Key management compensation is disclosed under Note 6.
The term deposit represents a bank guarantee given by Westpac Banking Corporation as securities over the entity’s transactions under the Customs Act.

The guarantee is covered by a lien over the term deposit of $20,000 held with the Bank.

The term deposit matures on 14 November 2014.

21.

Inventories Bags T-shirts Others Los Angeles office The valuation policy in respect of the above is set out in Note 3 (k).

22.

Contingencies There were no contingent asset or liabilities as at year end (2013: $Nil) 23.
Commitments Operating lease commitments for non-cancellable rental agreement and other operating lease.

Less than one year Between one and two years Between two and five years Total operating lease commitments 24.

Events subsequent to balance date $ 2013 6,043 6,043 $ 2012 165 8,124 1,376 9,665 356,462 170,578 206, 641 733,681 318,254 161,325 43,169 522,748 There are no events that requiring adjustment to or disclosure in the financial statements that occurred after the balance sheet date 36 37 38