The Government has relaxed the application of its new Tourism Services Tax, confirming that the five per cent levy will now apply only to new bookings made from September 1, 2026.
The decision means tourists who booked their Fiji holidays before September 1 will not have to pay the new tax, even if they travel and use tourism services after the tax takes effect.
The Government announced the change following discussions involving the Ministry of Finance, Ministry of Tourism and Civil Aviation and the Tourism Action Group.
“Bookings made before 1 September 2026 will not be subject to TST, even where the tourism service is provided after that date,” the Government said.
“This provides certainty for visitors and enables tourism operators to honour existing bookings and contractual arrangements.”
The concession represents a significant change in the implementation of the tax following concerns from sections of the tourism industry over its application to existing bookings.
The Tourism Services Tax will still take effect on September 1 and apply to qualifying tourism operators and services under the Tourism Services Tax Act 2026.
It will remain in place until August 31, 2027.
Government said the revised transition arrangement recognised the importance of tourism to Fiji’s economy.
“This practical transition reflects the Government’s recognition of tourism’s vital contribution to Fiji’s economy, employment, businesses and communities,” the statement said.
“It also demonstrates the Government’s commitment to listening to the industry and working collaboratively on policies that support sustainable economic growth.”
The announcement comes amid strong industry concerns about visitors being charged an additional five per cent on holidays they had already booked, and in some cases paid for, before the tax was announced.
The Fiji Hotel and Tourism Association had specifically called on Government to exempt existing bookings, arguing that visitors should not face an additional charge they could not have anticipated when making their travel arrangements.
Government has now effectively adopted that position, drawing a clear line between bookings made before September 1 and new bookings made from that date.
The Fiji Revenue and Customs Service will issue updated guidance and work with tourism stakeholders ahead of implementation.
Government also thanked tourism operators and workers for their contribution to the industry and acknowledged visitors from Australia, New Zealand and other international markets for continuing to choose Fiji.
“Fiji remains open, welcoming and ready to share its renowned hospitality with the world,” the Government said.
