The Fiji Hotel and Tourism Association has welcomed Government’s decision to exempt existing bookings from the new Tourism Services Tax, describing the change as the outcome the industry had sought since consultations began.
Government has confirmed that the five per cent TST will apply only to bookings made on or after September 1, 2026.
This means bookings made before that date will not attract the tax, even if the tourism service is provided after September 1.
FHTA chief executive officer Fantasha Lockington said the decision removed uncertainty for visitors who had booked and paid for their Fiji holidays months before the tax was due to take effect.
“This is a genuinely welcome result, and the right one,” Ms Lockington said.
“It restores fairness for visitors who planned their holiday in good faith, and it removes a real source of confusion and the higher risk of booking cancellations for the industry.”
She also acknowledged Government’s stated commitment to listening to the tourism industry and working collaboratively on policies supporting sustainable economic growth.
FHTA had consistently pushed for existing bookings to be exempt, arguing that visitors should not face an additional tax that did not exist when they booked their holidays.
Despite welcoming the change, the association said further clarity was still needed before implementation.
FHTA is awaiting updated Standard Interpretation Guidelines and further guidance from the Fiji Revenue and Customs Service on the scope and application of the tax.
“While not complete in terms of the clarity around the application, we are absolutely delighted with the outcome,” Ms Lockington said.
“Members still need clear, practical answers before 1 September.”
She said FHTA would continue working with FRCS despite the increasingly limited time available for tourism businesses to update their systems.
The five per cent TST will apply for 12 months from September 1, 2026, to specified tourism businesses with annual turnover of $2 million or more and to specified tourism services.
