Good news for the tourism industry as the Government has heard their demands and has decided that the 5 percent Tourism Services Tax will apply only to new bookings made on or after 1st September.
This follows constant calls from the Fiji Hotel and Tourism Association to not apply the tax retrospectively.
The Ministry of Finance says following constructive discussions between the Ministry, the Ministry of Tourism and Civil Aviation, and the Tourism Action Group, the Fijian Government has confirmed that the
bookings made before 1st September will not be subject to the 5 percent tax, even where the tourism service is provided after that date.
They say this provides certainty for visitors and enables tourism operators to honour existing bookings and contractual arrangements.
The tax will apply to qualifying tourism operators and services, as defined under the Tourism Services Tax Act 2026, from 1st September 2026 to 31st August 2027.
The Ministry says this practical transition reflects the Government’s recognition of tourism’s vital contribution to Fiji’s economy, employment, businesses and communities.
They say it also demonstrates the Government’s commitment to listening to the industry and working collaboratively on policies that support sustainable economic growth.
The Government has also acknowledged Fiji’s tourism operators, industry partners and workers for their continued resilience and commitment to delivering the warm hospitality for which Fiji is renowned.
They have also extended their sincere appreciation to visitors from Australia, New Zealand and countries around the world who continue to choose Fiji.
The Ministry says their ongoing patronage supports thousands of Fijian families and strengthens the communities that make Fiji such a special destination.
They say FRCS will issue updated guidance and work closely with tourism stakeholders to support a clear and smooth implementation from 1st September.
The Finance Ministry adds Fiji remains open, welcoming and ready to share its renowned hospitality with the world.
