Fiji Tourism Services Tax: Frequently Asked Questions
The Fiji Government has introduced a new 5% Tourism Services Tax, commencing on 1 September 2026. We have prepared the following information to help our guests understand how the new tax may affect their stay.
What is the Tourism Services Tax?
The Tourism Services Tax is a new 5% tax introduced by the Fiji Government under the Tourism Services Tax Act 2026. It applies to services provided by eligible tourism businesses with annual gross turnover exceeding FJ$2 million, including licensed hotels and other tourism operators. The Tourism Services Tax is separate from Fiji’s existing Value Added Tax (VAT) and must be shown separately on invoices and receipts.
Who pays the Tourism Services Tax?
The Tourism Services Tax is payable by the person receiving the tourism service. In practical terms, this means the tax is payable by the guest or consumer on applicable tourism services. Raffe Hotels & Resorts is responsible for collecting the applicable tax and remitting it in accordance with the legislation. This is set out in section 3(2) of the Tourism Services Tax Bill 2026, which states that the Tourism Services Tax is payable by the person to whom the tourism service is provided.
When does it apply?
The Tourism Services Tax comes into effect on 1 September 2026. It applies to all relevant tourism services in Fiji that are provided from this date, including accommodation, meals, beverages, activities and other eligible services purchased during your stay. Under the legislation, Tourism Services Tax collected between 1 September 2026 and 31 August 2027 will be directed to the company that owns or operates Fiji Airways.
Does it affect my existing booking?
Yes. The tax applies to eligible tourism services provided from 1 September 2026, including applicable stays that were booked, confirmed or paid for before the legislation was introduced. If your stay falls within the applicable period, your booking will be updated to include the new tax. We will send you a revised invoice showing the Tourism Services Tax as a separate charge.
Why is my booking changing if I already booked or paid?
We understand that an unexpected change to the cost of an existing booking can be frustrating. Government tax changes apply according to the tax rules in force when the relevant service is provided. Raffe Hotels & Resorts has applied these changes consistently in both directions. When Fiji’s VAT rate reduced by 2.5 percentage points in August 2025, that reduction was passed on to guests with existing forward bookings. In the same way, the new Tourism Services Tax must now be applied to eligible tourism services provided from 1 September 2026.
How much will I pay?
The Tourism Services Tax is charged at 5% of applicable tourism services. For example, if the applicable cost of a service is FJ$1,000 before taxes, the Tourism Services Tax will be FJ$50. The tax is separate from the existing 12.5% VAT and will be clearly itemised on your invoice or receipt. The exact additional amount payable will depend on the accommodation, meals, beverages, activities and other eligible services included in or added to your booking.
What services does the tax cover?
Under the legislation, the Tourism Services Tax applies to services including:
- Hotel accommodation, refreshments and other hotel services
- Meals and beverages provided by licensed hotel bars and clubs
- Inbound tours
- Water sports and underwater activities
- Surfing and river safaris
- Other similar tourism services
Why has it been introduced?
The Tourism Services Tax has been introduced by the Fiji Government. The legislation directs revenue collected between 1 September 2026 and 31 August 2027 to the company that owns or operates Fiji Airways. The tax is imposed by the Fiji Government and is outside the control of Raffe Hotels & Resorts, which includes Plantation Island Resort, Lomani Island Resort & Spa and Fiji Gateway Hotel.
Can the hotel waive the Tourism Services Tax?
The Tourism Services Tax is a Fiji Government tax payable by the person receiving the applicable tourism service. Raffe Hotels & Resorts is responsible for collecting the tax and remitting it in accordance with the legislation, so the applicable tax must be included on affected guest charges and shown separately on the invoice or receipt.
Where can I find further information?
You can read the Fiji Government’s official documents here:
If you have a question about how the tax affects your booking, please contact our Reservations team at [email protected].
