What is the Tourism Services Tax?
The Tourism Services Tax is a new 5% levy introduced under Fiji’s Tourism Services Tax Act 2026. It applies to services provided by hotels, tour operators and cruise operators with an annual turnover above FJ$2 million. It’s separate from Fiji’s existing Value Added Tax (VAT) and must be shown as its own line item on invoices and receipts.
The tax takes effect on 1 September 2026 and will run for an initial 12-month period, through to 31 August 2027.
Why is Fiji introducing it?
The revenue raised, estimated at around FJ$70 million, is being ring-fenced specifically to support Fiji Airways, the national carrier, as it continues to recover from the financial impact of the COVID-19 pandemic while managing rising aviation fuel costs. It’s part of a broader support package for the airline in Fiji’s 2026-2027 National Budget, alongside a government loan guarantee and an extension of the airline’s tax loss carry-forward period.
Does it apply to my booking?
This is the part that matters most if you’re planning a trip, and it’s been a fast-moving story.
In the lead-up to the tax taking effect, travel industry groups raised concerns that travellers who had already booked their Fiji holidays could end up paying more, even though they’d locked in their trip before the tax was announced. Following those concerns and discussions with the Ministry of Finance, Ministry of Tourism and the Tourism Action Group, the Fijian Government confirmed a concession just days before the tax took effect.
The confirmed rule: the 5% tax will only apply to new bookings made from 1 September 2026 onwards. If you booked your Fiji holiday before that date, you won’t be charged the tax, even if your actual travel happens after 1 September 2026.
In short:
– Booked before 1 September 2026? You’re exempt, regardless of your travel dates.
– Booking from 1 September 2026 onwards? The 5% tax may apply to eligible tourism services.
Will operators actually pass the cost on to travellers?
This is still a bit of a mixed picture. The tax is levied on operators, not directly on guests, and the government’s expectation is that most hotels, tour operators and cruise companies, particularly larger ones, will absorb the cost rather than pass it on, given it’s intended to protect visitor demand while supporting the national carrier. Some in the accommodation sector have pushed back on that expectation, and premium resorts in particular may choose to add a surcharge.
The practical takeaway: if you’re booking a Fiji trip for after 1 September 2026, it’s worth asking your hotel, resort or tour operator directly whether the Tourism Services Tax will be added to your invoice.
Planning a trip to Fiji or anywhere else?
Tax changes are just one of the many things that can shift between booking a trip and boarding your flight. While travel insurance can’t prevent changes to government taxes, fees or travel costs, it can help protect you against a range of unexpected events such as medical emergencies, or a disrupted journey. Having the right travel insurance in place means fewer surprises can throw off your trip.
If Fiji, or your next destination, is on the calendar, it’s worth checking your travel insurance is sorted before you go.