Aussies could be slugged with new tourist tax in Fiji as soon as next week: 'Zero consultation'

Published: 05:52, 24 August 2026 | Updated: 05:52, 24 August 2026 Aussie tourists could be forced to pay more to visit Fiji as the government prepares to roll out a new tourism services tax.  From September 1 tourism operators – including hotels and cruise businesses – with an annual turnover of more than $FJ2million (AUD$1.3 million) will pay a new five per cent tax on earnings. The revenue raised will be used to support Fiji Airways, the country's national carrier, while a $200 million government loan has also been guaranteed for the airline. The embattled carrier recorded a $25million loss in 2024 and was further hamstrung by rising fuel costs which has crippled the aviation sector since the outbreak of war in Iran earlier this year.  Fijian finance minister Esrom Immanuel said the tax would help rejuvenate the airline, which has been forced to cut several key routes to improve its bottom line, including its lauded Nadi - Dallas/Fort Worth direct service.  'The revenue generated will be ring-fenced and fully directed to Fiji Airways, which continues to face financial pressure from rising aviation fuel costs and its ongoing recovery from losses incurred during the Covid-19 pandemic,' Immanuel said.  However, the tax has sparked backlash from tourism officials concerned about its impact on revenue, with some warning it will likely be passed on to travellers with existing bookings.  The Fiji Hotel and Tourism Association (FHTA) labelled the backlash 'entirely avoidable', with its chief executive officer Fantasha Lockington telling the Fiji Times that the association had raised concerns with officials months ago.  Aussie tourists could be forced to pay more to visit Fiji as the government prepares to roll out a new tourism services tax (stock image) 'We tried to make this work from day one, and we were ignored at every turn', she said. '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.'  The Australian Travel Industry Association (ATIA) said the tax would confuse travellers, with chief executive Dean Long calling any potential price hikes on existing bookings 'a broken promise dressed up as policy'. '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,' he said.  'Retrospective application is an absolute no-go. Once a customer has paid, that price is locked in.   'The tax arrived with zero consultation with the travel industry in Australia or New Zealand despite the significant importance of these markets to Fiji. '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. From September 1 tourism operators – including hotels and cruise businesses – with an annual turnover of more than $FJ2million (AUD$1.3 million) will pay a new five per cent tax on earnings (stock image) 'That is not how you treat people who chose Fiji in good faith.'  Tourism contributes around 40 per cent of Fiji’s GDP, with most visitors arriving from Australia, New Zealand and the United States.  According to the Australian Bureau of Statistics, Fiji was one of the top 10 short-term return destinations for Australian travellers in June 2026, with 37,000 people returning from short stays of less than one year in that month alone.