Tourism Minister Viliame Gavoka: 5% tax only on new bookings

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Minister for Tourism and Civil Aviation, Viliame Gavoka. Picture: JONACANI LALAKOBAU

THE 5 per cent Tourism Services Tax will apply only to new bookings made from September 1, 2026, to August 31, 2027, and not to bookings already made.

Tourism Minister Viliame Gavoka gave this assurance following the Government’s decision to introduce the tax, primarily to raise money to support Fiji Airways amid significantly higher fuel costs and the risk of either increased airfares or reduced flights.

Mr Gavoka said visitors who had already made bookings would not be charged the 5 per cent tax.

“The commitment is there from us to honour your (tourists) booking,” he said.

He said the decision followed a meeting held earlier in the day and addressed concerns from the tourism industry that visitors with existing bookings would also be charged the tax.

“The point of contention was that those who had already booked were also going to be charged with 5 per cent. That is not the case.”

Mr Gavoka said the decision should end the disagreement within the tourism industry over the tax.

He also highlighted the performance of the tourism sector, saying Fiji recorded its biggest June and July visitor numbers in history, with more than 100,000 visitors recorded in July.

“And more employment, and tourism continues to be the driver of our economy.

“So please, let everyone know that a decision has been made today that’s only for new bookings.”

Earlier, permanent secretary for Finance Shiri Goundar said the tax was expected to raise about $70million over 12 months, with the revenue ring-fenced for Fiji Airways.