Australian travellers bound for Fiji to be hit with new tourism tax, travel industry slams ‘broken promise’

A major tax hike in one of the country’s favourite overseas holiday havens could be set to hit Aussie travellers in the pocket, experts have warned.

Fiji, which ranks in the top 10 holiday destinations for Australians, will introduce a new five per cent levy on major tourism businesses next month.

The hike will apply to any tourist business, including holiday and cruise providers, with an annual turnover of more than FJ$2m (AU$1.3m).

The move has sparked warnings from industry experts that the new levy could end up being absorbed by Aussies looking to visit the South Pacific island nation.

The Australian Travel Industry Association has hit out at the move, insisting it is the wrong move.

The industry body has argued the move will cause confusion for holiday-makers who have already booked trips 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,” chief executive Dean Long said.

“Retrospective application is an absolute no-go. Once a customer has paid, that price is fixed.

“Sending a fresh bill after the fact is not tax collection, it is broken promise dressed up as policy.”

It will come as a major blow to holiday-makers – particularly those with pre-existing bookings.

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

Julie White, chief executive of the Travel Agents’ Association of New Zealand, joined him in criticising the move.

The changes have been introduced as part of wider changes to taxation as part of Fiji’s 2026-27 national budget, which passed last month.

Fijian authorities say that additional tax revenue produced by the levy would be ring-fenced to support Fiji Airways, which is continuing to recover from the impact of the Covid-19 pandemic.