Aussies could be slugged with new tourist tax in Fiji as soon as next week: ‘Zero consultation’
Fiji's government is introducing a new five per cent tourism services tax from 1 September, which could push up costs for Australian holidaymakers, including those with existing bookings. The levy, aimed at tourism operators such as hotels and cruise companies with an annual turnover above FJ$2 million, has drawn strong criticism from tourism bodies who say they were given almost no time to prepare and were not properly consulted before its introduction.
The tax revenue will go directly to Fiji Airways, the national carrier, which recorded a A$25 million loss in 2024 and has struggled with rising fuel costs, partly linked to the conflict in Iran; the airline has also been guaranteed a $200 million government loan and has cut routes such as its Nadi-Dallas/Fort Worth service. The Fiji Hotel and Tourism Association and the Australian Travel Industry Association have both hit out at the rollout, warning that retrospective charging on paid bookings is unacceptable and that operators had just over two weeks to adjust contracts and pricing. Tourism makes up roughly 40 per cent of Fiji's GDP, with Australia its largest source market and New Zealand its second, and Australian Bureau of Statistics figures show 37,000 Australians returned from short trips to Fiji in June 2026 alone.
- Fiji to impose new 5% tourism tax on operators from 1 September
- Funds will support loss-making national carrier Fiji Airways
- Industry groups slam lack of consultation and short notice
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Fiji is bringing in a new five per cent tax on tourism services from 1 September, covering hotels, cruise operators and similar businesses with turnover above FJ$2 million a year. Because it applies from that date rather than from when a holiday is booked, it could add costs for travellers who have already paid for trips, including many Australians.
The money raised is earmarked for Fiji Airways, the national carrier, which lost around A$25 million in 2024 amid rising fuel costs and has needed a government-guaranteed loan to stay afloat. Industry groups, including the Fiji Hotel and Tourism Association and the Australian Travel Industry Association, say they had only a couple of weeks' notice to adjust prices and contracts, and argue they were not properly consulted beforehand.
The issue matters beyond individual holidaymakers because tourism underpins roughly 40 per cent of Fiji's economy, and Australia is its biggest source of visitors, followed by New Zealand. Any sudden change to costs or booking terms has knock-on effects for travel operators on both sides and for the hundreds of thousands of Australians who visit Fiji each year.