Opposition MP Premila Kumar says pressure from Fiji’s tourism industry forced the Government to change its position on the Tourism Services Tax, describing the decision as a “victory for common sense”.
The Government has confirmed that the new five per cent TST will apply only to bookings made on or after September 1, 2026, meaning existing bookings will be exempt even if the service is provided after that date.
Ms Kumar welcomed the decision but questioned why industry pressure was required to secure the change.
“This is the right decision. But why did it take pressure from the tourism industry to get Government to do what should have been agreed during consultation in the first place?” she said.
Ms Kumar said the Fiji Hotel and Tourism Association had raised concerns about protecting existing bookings and contractual arrangements, while she had also called for the issue to be reconsidered in Parliament.
“My concerns were ignored at the time,” she said.
She argued the reversal highlighted broader concerns about the Government’s approach to economic policymaking.
“Government cannot first ignore the industry’s concerns and then blame the industry for objecting,” Ms Kumar said.
“The Government’s reversal today demonstrates that the industry’s concerns were legitimate.”
She said tourism generated billions of dollars in foreign exchange and supported thousands of businesses and livelihoods, making it important that policies affecting the sector were developed with careful consideration of their wider impact.
Ms Kumar warned that tourism businesses were already dealing with rising costs, new regulatory requirements and uncertainty surrounding other legislation.
“Fiji cannot afford to make itself a more expensive and less competitive destination,” she said.
She called on the Government to assess the combined impact of taxation and regulation on Fiji’s competitiveness and develop a long-term strategy focused on growing the tourism industry rather than increasing revenue collection from it.
“Decision on tourism services tax is a victory for common sense and for the tourism industry,” Ms Kumar said.
