- Fiji government implementing 5pc tourism services tax from 1 September 2026
- Levy applies to businesses with annual turnover above FJD2 million
- Tax supports Fiji Airways and aims to strengthen national carrier
- FHTA seeks exemption for holidays booked and paid before announcement
- Implementation postponed twice to allow business preparation time
Fiji’s government has urged tour operators to implement a temporary 5pc tourism services tax from 1 September 2026, accusing the Fiji Hotel and Tourism Association (FHTA) and some industry players of delaying its rollout.
Implementation had already been postponed from 1 July to 1 August, and then to 1 September, to allow businesses more time to prepare. The 12-month levy, introduced to support Fiji Airways, applies to eligible tourism businesses with an annual turnover above FJD2 million (USD900,000).
The FHTA has rejected the government’s criticism and is seeking an exemption for holidays booked and paid for before the tax was announced. The association has argued that businesses need adequate time to adjust their booking systems and communicate changes to international partners. Tourism operators have expressed concern that the levy may affect forward bookings and Fiji’s competitive position in the South Pacific market.
Fiji Airways has faced financial pressures in recent years, with the government’s support levy designed to strengthen the national carrier’s balance sheet. The airline serves as a vital link for Fiji’s tourism-dependent economy, connecting the island nation with key markets including Australia, New Zealand, the United States and Asia. The temporary levy represents one component of broader government efforts to stabilise the aviation sector while maintaining tourism growth targets.
