Fiji Introduces 5% Tourism Tax — Even Some Paid Holidays Could Be Affected

Travellers heading to Fiji from September could face an unexpected additional cost, with the Fijian Government introducing a new 5% Tourism Services Tax (TST) on a range of tourism services.

The tax applies to qualifying tourism services provided in Fiji between 1 September 2026 and 31 August 2027. Importantly, it is based on when the service is provided — not when the holiday was booked or paid for.

That means some travellers who have already paid for their Fiji holiday could still find an additional charge waiting for them.

What is the Fiji Tourism Services Tax?

The new 5% tax applies to qualifying tourism businesses with annual gross turnover above FJ$2 million. It covers a broad range of services, including:

• Hotel accommodation and certain hotel services
• Meals and drinks in licensed hotel bars and clubs
• Inbound tours
• Tourist vessels and cruise-related services
• Water sports and underwater activities
• Surfing and river safaris
• Similar tourism services provided in Fiji

It does not apply to international airfares.

Will Travellers Actually Pay the 5%?

This is where things become less straightforward.

Travel agents are not responsible for collecting or remitting the tax. Instead, that responsibility sits with the relevant tourism supplier in Fiji.

Whether a hotel, tour operator, vessel operator or activity provider absorbs the 5% or passes it on to customers is up to the individual supplier.

So two travellers could potentially receive different treatment depending on the supplier they have booked.

Any additional charge would generally be collected directly by the supplier — potentially at check-in or on a supplier invoice.

The Problem for Existing Bookings

The retrospective effect of the tax is already causing concern within the Australian travel industry.

The Australian Travel Industry Association (ATIA) has sought a meeting with the Fijian Government, with CEO Dean Long describing the application of the tax to existing bookings as unacceptable.

The concern is particularly significant for travellers who have already paid in full and believed their holiday costs were settled.

As Long has argued, travellers who booked and paid in good faith should not necessarily be expected to find additional money months later because of a tax introduced after their booking.

For travel agents, the situation is equally awkward. Agents are effectively caught between customers and suppliers, having to explain a charge they do not create, collect or control.

What Fiji Travellers Need to Know

If you are travelling to Fiji between 1 September 2026 and 31 August 2027, check whether your accommodation, tour or activity provider intends to pass the new TST on to you.

Even if your holiday has already been paid in full, an additional charge may still be possible.

The safest approach is to check with your travel agent or directly with the relevant Fiji supplier before departure.

For now, the big question is whether Fiji’s tourism industry will absorb the new tax or pass it on to visitors — and whether the Fijian Government will reconsider applying it to holidays that were already booked and paid for.

The Walking Critic will be watching.