Fiji Tourism Body Welcomes Tax Relaxation But Seeks Clarity on Policy Details in FJ

Fiji's main tourism industry body has welcomed the government's decision to relax its new tourism tax, but says it remains confused about some aspects of the controversial policy. The Fijian government first announced details about a 5 percent Tourism Services Tax (TST) during the 2026-2027 National Budget address in late June, with the tax slated to take effect on 1 September. Parliament passed the budget on 16 July, but it was not until late August, during a parliamentary sitting, that the government clarified how the TST would be implemented, saying its purpose was to support the national carrier, Fiji Airways.

The announcement sparked a backlash from travel industry stakeholders both locally and abroad, including in Australia and New Zealand, over concerns the government intended to apply the tax retrospectively. Following significant pushback, the government announced the new tax would only apply to new bookings made on or after 1 September. Bookings made before 1 September 2026 will not be subject to TST, even where the tourism service is provided after that date.