Fiji’s new tourism tax sparks major backlash as Aussie travellers caught out

From as early as next week, Aussie travellers could be forced to pay more for a Fiji holiday.

Fiji’s federal government has introduced a new tourism services tax for large-scale tourism operators starting from September 1.

And the move has already sparked fierce backlash, with travel industry experts warning the costs are likely to be passed on to customers.

From September 1, a 5 per cent tax has been tacked on to tourism operators – including hotels and cruise businesses – that have an annual turnover of more than $FJ2 million ($1.3 million).

The changes are part of broader taxation amendments passed in Fiji’s 2026-2027 national budget last month.

The Fiji Hotel and Tourism Association has called out the implementation of the tax, claiming the backlash was “entirely avoidable”.

FHTA chief executive officer Fantasha Lockington said the association raised concerns with the government months ago.

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“We tried to make this work from day one, and we were ignored at every turn,” Ms Lockington told The Fiji Times.

“We handed government a clear, specific warning of exactly how complicated this was going to be to administer.

“That warning was not heard, or it was heard and dismissed. Either way, the result is the mess our travel partners are now scrambling to clean up, with days rather than weeks to do it.”

Last week, the Australian Travel Industry Association (ATIA) also called out the Fijian government, saying the new tax wasn’t the right move.

The industry body said it would confuse travellers who already had trips booked from September onwards.

“The design and rollout reflect a complete lack of understanding of how the travel booking ecosystem works, and it is travellers and travel businesses who will pay the price for that failure,” ATIA chief executive Dean Long said in a statement.

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“Retrospective application is an absolute no-go. Once a customer has paid, that price is locked in. Sending a fresh bill after the fact is not tax collection, it is a broken promise dressed up as policy.”

Long said many travellers were being asked to find extra money for a holiday they thought was settled months ago.

“That is not how you treat people who chose Fiji in good faith,” he said.

There is also anger about a lack of consultation with industry bodies before the changes were announced.

“None of this needed to happen. The tax arrived with zero consultation with the travel industry in Australia or New Zealand despite the significant importance of these markets to Fiji,” Long said.

“Australia is Fiji’s largest tourism market, and New Zealand its second-largest. Even setting aside the retrospective billing, the industry was given just over two weeks between the announcement and the tax’s start date, nowhere near enough time to update contracts, pricing systems or advise travellers.”

Echoing the sentiment, the Travel Agents’ Association of New Zealand (TAANZ) said it was concerned with the way the tax was being implemented.

In particular, the group is asking proposed that existing bookings should be exempt.

“Grandfathering existing bookings is the fairest outcome. It protects travellers who purchased in good faith, gives the travel industry certainty and allows the new tax to be implemented cleanly for new bookings from 1 September,” TAANZ chief executive Julie White said.