Fiji adds 5% Tourism Services Tax for large operators on Sept. 1

Fiji will levy a 5% Tourism Services Tax on major hospitality businesses starting Sept. 1.

A 12-month surcharge on large operators

The Tourism Services Tax Act 2026 introduces a temporary 5% levy running from Sept. 1 through Aug. 31, 2027, the Fiji Revenue and Customs Service (FRCS) confirmed. All proceeds collected during the 12-month window are earmarked for the national airline, Fiji Airways.

The tax applies exclusively to businesses with an annual gross turnover exceeding FJ$2 million (around $890,000), leaving smaller operators exempt. While levied on the business, the Act mandates that companies pass the charge directly to customers. The surcharge sits on top of Fiji's existing 12.5% Value Added Tax.

Covered services at qualifying operations include:

• Accommodation and services provided by licensed hotels and resorts
• Meals and drinks purchased at licensed resort bars and restaurants
• Inbound tours and cruise excursions
• Water sports and adventure activities, including diving and boat charters

What the 5% bump means for remote work budgets

The tax applies only to new bookings finalized on or after Sept. 1. Existing confirmed reservations remain exempt, FRCS reported.

For digital nomads planning long-term stays through the Fiji guide, the surcharge creates an immediate price divide between international resorts and independent local rentals. Booking a month-long resort stay priced at FJ$4,000 ($1,780) will trigger an extra FJ$200 ($89) in tax, before the 12.5% VAT is calculated. In contrast, remote workers leasing independent apartments or staying in guesthouses below the FJ$2 million threshold avoid the tax on rent, though they will still pay the 5% fee on day trips or meals billed through large resort operators.