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Important travel update
Fiji Tourism Services Tax
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Bula,
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We are writing to provide an important update regarding the Fiji Government’s introduction of a new
5% Tourism Services Tax (TST), which will apply to qualifying tourism services
supplied or consumed in Fiji from 1 September 2026 and 31 August 2027.
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Importantly, the application of the tax is based on
when the tourism service is provided,
rather than when a booking was made, confirmed or paid. This means that travel arrangements from
1 September 2026 onwards may be affected,
including bookings made or paid for before the tax takes effect.
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Which tourism services are covered?
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The Tourism Services Tax legislation identifies qualifying tourism services as including:
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Accommodation, refreshments and other services provided by a licensed hotel
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Services provided on a vessel wholly or principally engaged in the carriage of tourists within Fiji
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Meals and beverages provided in a licensed bar or club located within a hotel
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Inbound tour services
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Water sports and activities, including underwater activities, surfing and river safari
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Similar services to those listed above
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It is a government charge
The Tourism Services Tax has been introduced by the Fiji Government.
Fiji Island Holidays does not set, control or retain the charge.
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It may affect existing and new bookings
Where an affected supplier confirms that the tax applies, an additional amount may be payable,
including on an existing booking, depending on the services included and the relevant travel dates.
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We will confirm your exact position
There is nothing you need to do at this stage.
If your booking is affected, your consultant will contact you directly once the relevant supplier
has confirmed how the tax applies to the services included in your arrangements.
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Why the final amount may vary
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The implementation of the TST is not necessarily as simple as adding 5% to the total cost of a booking.
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A travel arrangement may include a number of different tourism services provided by separate suppliers,
and the treatment of those services may vary. Suppliers are also continuing to update their rates,
contracts and systems as the new tax is implemented.
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For this reason, we
cannot speculate on how the TST may affect an individual booking until we have received confirmation from the relevant supplier.
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If you are currently planning travel to Fiji
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If you are currently arranging a Fiji holiday, wedding, honeymoon or other travel for dates from
1 September 2026 onwards, the Tourism Services Tax will need to be taken into account
where it applies to qualifying tourism services included in your arrangements.
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Some suppliers are still finalising revised rates and updating their systems.
Where final supplier pricing has not yet been confirmed, we will advise you accordingly and update your
arrangements once the relevant information becomes available.
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If your existing booking is affected
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Where the tax applies, it is not a Fiji Island Holidays fee or discretionary surcharge.
We will advise you of the position once it has been confirmed for the relevant services in your booking
and explain any amount and payment arrangements that may apply.
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We understand that an additional charge is never welcome.
Our aim is to keep the process as clear as possible and only contact you if your booking is affected.
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What happens next
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We will continue to review information as it is issued by the Fiji Government and our tourism partners.
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As further clarification becomes available, supplier pricing and the treatment of individual services
may continue to evolve. The final amount and application of the TST to any individual booking therefore
remain subject to the legislation and confirmation from the relevant supplier.
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If your booking requires any action, we will contact you directly.
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If you do not hear from us, there is nothing you need to do.
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Vinaka and regards,
Mike Dungan
Managing Director
Fiji Island Holidays
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Fiji Island Holidays | www.fijiislands.com.au
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