THE Fiji Hotel and Tourism Association has rejected the government’s characterisation of the industry’s opposition to the Tourism Services Tax, saying the response failed to address the impact on visitors.
Government claimed the industry had employed delaying tactics and there was a risk of sabotage, because hoteliers expressed concern over the effect of the new tax on holidays bought prior to the legislation.
The association said it supported Fiji Airways and recognised the government’s right to support the airline. But it objected to the implementation of the tax, particularly the additional five per cent charge now being applied to existing bookings.
“What we cannot accept is the way this particular measure has been implemented, in particular its impact on visitors who had already booked and paid for a Fiji holiday before this tax was ever announced,” FHTA said in a statement.
The association said it had sought an assurance during consultation that existing bookings, including those already contracted and in many cases paid in full, would be exempt from the new levy. That assurance was provided but later overturned in the final legislation and guidance, it said.
“Put yourself in the position of a family in Australia or New Zealand who booked and paid for their Fiji holiday eight months ago,” said FHTA chief executive officer Fantasha Lockington.
“They budgeted for a set price, in good faith, based on the rules that existed at the time. They now arrive to find an unexpected charge added to their bill, for a tax that didn’t exist when they booked. What consumer anywhere in the world would accept that?”
FHTA said the dispute was not about whether Fiji Airways deserved support, but about consumer fairness and the government’s decision to change the rules after visitors had committed to their holidays.
“This isn’t a debate about whether Fiji Airways deserves support,” Lockington said.
“It’s about Government going back on what it told this industry it would do and then refused to provide the consumer fairness the tax called for.”
The association also rejected the government’s use of corporate tax figures to question tourism’s contribution to Fiji’s economy.
FHTA said the government’s statement cited tourism’s contribution of only around 5 per cent of corporate tax collected nationally, while also acknowledging that tourism generated approximately 40 per cent of Fiji’s economic activity and nearly $3 billion in foreign exchange earnings annually.
“Corporate tax is a tax on profit, and profit is not the same thing as contribution,” FHTA said.
The association said the lower corporate tax contribution had to be considered alongside the government’s long-standing use of tourism tax holidays to attract investment. It contrasted tourism’s returns with “billions” invested in the sugar industry over decades, saying tourism had delivered growth, jobs and foreign exchange without comparable subsidies.
FHTA said it did not intend to relitigate that argument point by point. Instead, it said the immediate concern was the reputational damage caused by applying the tax to bookings made under the previous rules.
Fiji Tourism Tax Backlash
The association said members were already dealing with practical fallout, including at least one confirmed case in which a multi-room group booking was cancelled and rebooked at another destination because of the added charge.
“Every cancelled booking is a passenger who was going to fly Fiji Airways to get here, and now won’t,” Lockington said.
“We want Fiji Airways to succeed. But applying this tax retrospectively to bookings that were already locked in gives visitors a reason to cancel rather than a reason to fly here. That helps no one, least of all the airline.”
FHTA also clarified that it was no longer part of the Tourism Action Group, which has publicly expressed support for the Tourism Services Tax.
The association said it withdrew its membership from TAG on July 4 following what it described as the government’s undue influence over TAG’s committee operations and a shift away from independent, whole-of-industry representation.
“FHTA is no longer a member of TAG in any capacity, and TAG’s positions do not reflect FHTA’s views,” it said.
Based on the Hotel Licensing List as at December 2025, FHTA said its accommodation members represented 70 per cent of licensed room inventories in Fiji and more than 80 per cent of the total tourism support and supply chain networks.
FHTA said it was not calling for the tax to be scrapped. Its request was to exempt bookings made and paid for before the tax was announced.
“Visitors who plan a holiday in good faith, under one set of rules, should not have those rules changed on them after the fact,” the association said.
“We support what Government is trying to do for Fiji Airways,” Lockington said. “We are simply asking Government to keep its word on how this would apply to people who had already booked their holiday. That is not too much to ask.”
