A confirmed case of an overseas group cancelling and rebooking its Fiji holiday at another destination has become the latest flashpoint in the dispute over the Government’s Tourism Services Tax, with the Fiji Hotel and Tourism Association calling for exemption for visitors who booked before the tax was announced.
FHTA says the cancellation demonstrates the practical consequences of applying the additional 5 per cent charge to existing bookings.
The association’s CEO, Fantasha Lockington, said the industry supports Fiji Airways and recognises the importance of maintaining the airline’s viability, but argued that the way the new tax has been implemented risks undermining the very tourism demand it is intended to support.
“Every cancelled booking is a passenger who was going to fly Fiji Airways to get here, and now won’t,” Ms Lockington said.
“We want Fiji Airways to succeed. But applying this tax retrospectively to bookings that were already locked in gives visitors a reason to cancel rather than a reason to fly here. That helps no one, least of all the airline.” The association is not calling for the Tourism Services Tax to be scrapped. Instead, it is asking Government to exempt bookings that were made — and, where applicable, paid for — before the tax was announced.
Ms Lockington said families in Australia and New Zealand who booked Fiji holidays months in advance had budgeted according to the rules and prices in place at the time.
“Put yourself in the position of a family in Australia or New Zealand who booked and paid for their Fiji holiday eight months ago.
“They budgeted for a set price, in good faith, based on the rules that existed at the time. They now arrive to find an unexpected charge added to their bill, for a tax that didn’t exist when they booked.”
FHTA said the issue was particularly sensitive for Fiji because tourism relied heavily on international visitors making advance bookings and planning their travel budgets well ahead of arrival.
The association rejected the Government’s characterisation of its concerns as “delaying tactics” or an attempt to “sabotage” the TST.
It said its position is focused on one specific implementation issue: protecting visitors who committed to Fiji before the tax was announced.
FHTA also clarified that it is no longer a member of the Tourism Action Group (TAG), having withdrawn its membership on July 4, 2026.
Therefore, it said TAG’s subsequent public support for the TST should not be interpreted as representing FHTA’s position.
Based on the Hotel Licensing List as at December 2025, FHTA said its accommodation members represent 70 per cent of licensed room inventory in Fiji, while its wider membership covers more than 80 per cent of tourism support and supply-chain networks.
The association said it wants Government to maintain its support for Fiji Airways while also ensuring that the new tax does not penalise visitors who had already committed to a Fiji holiday.
