A vacation in Fiji may now come with a few extra charges.
On September 1, Fiji introduced a new 5 percent Tourism Services Tax (TST) covering certain hotels and resorts, inbound tour operators, cruises, water-sports companies, and other tourism businesses. But for travelers, it may not always be obvious when the tax will apply—a hotel stay, meal, ferry ride, or snorkeling trip may be taxable in one case and not another.
Whether you pay the tax depends on what you’re buying and which business is selling it. Generally, operators must earn more than $2 million Fijian dollars (FJD) (about US$908,000) per year from qualifying tourism services to fall under the new rules.
There’s another important wrinkle for anyone with a trip already booked. After tourism groups objected to the possibility of retroactive charges, Fiji’s government clarified that reservations made before September 1 are exempt, even if the trip takes place after September 1.
Here’s what travelers need to know about where the new tax applies, what it could add to a vacation, and how to tell whether it will show up on your bill.
Why is Fiji adding the tax now?
The Tourism Services Tax is being introduced as a temporary measure and is currently scheduled to run through August 31, 2027.
Unlike many tourism taxes introduced around the world, the money is not specifically earmarked for conservation or visitor infrastructure. Fiji’s government expects the tax to raise roughly FJD$70 million (about US$32 million) over 12 months, with the revenue intended to support Fiji Airways amid higher aviation fuel costs and the airline’s continuing recovery from pandemic-era losses.
Where are travelers most likely to see the new tax?
For many visitors, the most obvious place the tax will appear is at larger hotels and resorts. At qualifying properties, the 5 percent tax can apply to the room itself as well as other eligible services sold by the hotel, including food and drinks, laundry, and other charges added to a guest’s bill.
Tours and activities are another major category. Travelers booking with qualifying tour operators may encounter the TST on guided excursions, sightseeing trips, airport transfers, and other transportation arranged through the operator.
It can also apply to many of the water-based experiences Fiji is known for, including diving, snorkeling, surfing excursions, river safaris, and tourist cruises.
The important distinction is that the tax applies to the type of service and the business selling it. A snorkeling trip booked through one large operator could carry the extra 5 percent, while a similar outing with a smaller company that falls below the revenue threshold might not.
And timing matters. If you booked a qualifying hotel stay or tour before September 1, the government says that existing reservation is exempt, even if the trip takes place after September 1. But extras purchased after September 1—say, a dive trip booked after arrival or room service added to a resort bill—may still be taxable.
What won’t necessarily cost 5 percent more?
Despite its name, the Tourism Services Tax isn’t a blanket surcharge on everything visitors purchase in Fiji.
An independent restaurant, for example, doesn’t automatically have to collect the tax simply because tourists eat there; the rules specifically include meals and refreshments provided by qualifying hotels and licensed bars or clubs located within hotels. Transportation depends on the service as well: Airport transfers and other transportation arranged by qualifying tour operators are covered, while the government says a scheduled inter-island ferry is outside the tax when it functions primarily as public transportation for local communities rather than as a tourist vessel.
Travelers shouldn’t need to determine for themselves whether a particular company earns enough revenue to fall under the law. Businesses that meet the requirements are responsible for collecting the tax, and qualifying operators must show the TST separately on receipts, so for travelers, they’ll know whether an element of their Fiji vacation cost extra when checking the final price of their booking to see whether the TST is listed as a separate line on the invoice.
How much extra should you budget?
That depends heavily on how you travel. Someone staying at a smaller property, eating primarily at independent restaurants, and booking activities with small local operators may encounter the new tax relatively infrequently. Travelers staying at a larger resort and arranging multiple excursions, cruises, or water activities through qualifying companies could see it much more often.
For every FJD$1,000 (US$454) spent on qualifying services, the TST itself adds FJD$50, or roughly US$23 at current exchange rates.
Looking for a more direct way to give back? Try Loloma Hour
A beachside villa at Kokomo Private Island, which participates in Fiji’s Loloma Hour program.
Courtesy of Kokomo Island
The Tourism Services Tax may ultimately support Fiji Airways, but travelers who want to contribute to a sustainable tourism initiative can also seek out Loloma Hour, a nationwide Tourism Fiji initiative that pairs guests with conservation and community projects.
In Fijian, loloma refers to acting with generosity, driven by love—a concept Tourism Fiji says reflects the care Fijians have for their land, ocean, and one another. The program asks travelers to spend at least one hour of their vacation participating in an activity centered on one of four areas: wildlife, reefs, coastlines, or communities.
What that hour looks like depends on where you stay. At Kokomo Private Island, a remote resort, guests can learn about the property’s manta ray conservation work with its marine biology team before heading out for a guided snorkel on the Great Astrolabe Reef. Kokomo’s broader marine program includes identifying individual manta rays and gathering data used to better understand and protect the animals.
At Six Senses Fiji, the focus is on the critically endangered Fijian crested iguana. There, guests can join nighttime spotting walks with the sustainability team, learning how the resort monitors the population, or help restore iguana habitats by planting native trees that the reptiles rely on for food.
And at Nanuku Resort, guests can help restore the coastline by transplanting mangrove seedlings in areas vulnerable to erosion.
Other Loloma Hour experiences around Fiji range from coral restoration to beach cleanups. Participating businesses include properties and operators across the islands, and Tourism Fiji maintains an updated list of Loloma Hour experiences that travelers can seek out when planning a trip.
