Fiji adds 5% Tourism Services Tax for resort stays starting Sept. 1

Fiji will implement a 5% Tourism Services Tax (TST) starting Sept. 1, 2026, raising bills for remote workers and travelers staying at major resorts or using large tour operators.

The 5% levy on large operators

The Tourism Services Tax Act 2026 imposes a 5% tax on qualifying tourism services consumed on or after Sept. 1. Under the legislation, the cost is legally payable by the customer but collected and remitted by businesses with an annual gross turnover exceeding FJ$2 million (about $890,000).

The levy applies across several categories:

• Hotel accommodation, meals and drinks from licensed hotel facilities

• Inbound tours and cruise operations

• Water sports, surfing excursions and river safaris

The tax is temporary, running for 12 months through Aug. 31, 2027, with revenue directed to fund Fiji Airways, the Fiji Revenue and Customs Service (FRCS) confirmed.

What the tax adds to accommodation costs

The 5% TST applies in addition to Fiji's existing 12.5% Value Added Tax (VAT). Invoices must display the two taxes separately. For a remote worker spending FJ$3,000 ($1,335) a month on serviced resort accommodation, the tax adds FJ$150 ($67) on top of the base charge and the FJ$375 ($167) VAT, bringing the monthly total to FJ$3,525 ($1,569).

Qualifying businesses must apply the fee to all eligible stays provided from Sept. 1, even for bookings made and paid for before that date. However, travelers booking extended stays at smaller guesthouses, homestays or standard residential apartments below the FJ$2 million threshold will avoid the extra 5% charge.

Remote workers planning extended stays can review local housing and entry conditions in the Fiji guide to budget around the new hospitality surcharge.