Tourism tax backlash grows as Whitton says industry warned Government weeks ago

Criticism of Fiji’s new 5 per cent Tourism Services Tax is growing, with prominent tourism operator Tony Whitton saying the industry had been raising concerns with Government and tax authorities for weeks before its September 1 implementation.

The controversy intensified following Australian media reports warning that travellers with holidays already booked and paid for could face additional charges once the tax takes effect.

Commenting on the reports, Charlie Charters questioned the handling of the new tax, saying Fiji was now being accused of breaking promises to consumers and failing to understand how the international travel booking industry operates.

“FIJI, WHO CAN BEAT YOU??!” Charters wrote, before highlighting criticism that travellers and travel businesses could ultimately bear the cost.

He also questioned the wisdom of creating uncertainty around tourism, describing the sector as a centrepiece of Fiji’s economy and ending his criticism with: “If own goals were an Olympic sport ...”

Rosie Travel Group and Ahura Resorts Managing Director Tony Whitton then revealed that tourism operators had already been discussing the issue with Government.

“The tourism industry (hotels, tour operators, activity companies, marine) have been in discussion with our line Ministry and the tax office for over 6 weeks to either repeal or at least apply the new tax to only new bookings made after 01 September 2026,” Whitton said.

He said the industry had warned that retrospectively applying the tax to existing contracts that had already been agreed and paid for could amount to a breach and lead to pushback.

Whitton heads one of Fiji’s best-known tourism groups, with Rosie Travel Group recently securing major honours at the Fiji Excellence in Tourism Awards.

McDonald’s Fiji Managing Director Marc McElrath also entered the discussion, responding to Whitton: “The people who negotiated this tax in the first place should answer!”

Opposition MP Semi Koroilavesau questioned the policy from a political perspective, saying he could not understand how a Minister responsible for protecting the tourism industry could introduce measures that increased costs and potentially hindered the sector.

The backlash comes just days before the 5 per cent Tourism Services Tax takes effect on September 1.

The Fiji Revenue and Customs Service says the tax will apply to qualifying tourism services supplied or consumed from that date by businesses exceeding the $2 million turnover threshold.

However, the treatment of existing bookings has become a major point of contention.

Some tourism operators have advised guests that the tax will apply even where accommodation was booked, confirmed or fully paid for before the legislation was introduced, provided the service is delivered after September 1.

Australian Travel Industry Association CEO Dean Long has described retrospective application as an “absolute no-go”, arguing that once a customer has paid, the agreed price should be considered fixed.

The new tax will operate for 12 months and is expected to raise around $70 million, with the revenue directed towards supporting Fiji Airways.

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