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The five per cent tourism levy introduced in the National Budget will be absorbed by the industry and is not expected to be passed on to visitors.
Permanent Secretary for Finance Shiri Goundar said hotels, tour operators, and cruise operators will shoulder the cost through internal adjustments rather than increasing prices for tourists.
He said the levy will support Fiji Airways during a period of rising operational costs, particularly fuel expenses.
Goundar said industry stakeholders have agreed that the additional cost will be absorbed within existing pricing structures rather than added to room rates or service charges.
He said this means tourists are not expected to directly face higher costs as a result of the measure.
According to Goundar, the decision was reached following discussions with the tourism industry, including key private sector operators and aviation stakeholders.
He said the aim is to prevent additional costs from being transferred to visitors, which could impact travel demand and overall visitor arrivals.
Goundar said passing on the costs could increase airfares and tourism expenses, creating a risk of reduced visitor numbers.
He said Fiji Airways remains central to the tourism sector and must be supported to maintain flight connectivity.
Goundar said the levy is designed as a coordinated industry contribution to help sustain the national carrier’s operations.
Government has also supported the arrangement through financial backing and coordination with relevant state agencies.
He said the approach reflects a shared effort between Government and industry to manage external pressures, particularly rising global fuel prices.
Goundar said the measure is temporary and driven by current global conditions rather than a permanent tax change.
He said the focus remains on maintaining Fiji’s tourism competitiveness while preventing disruptions to air services and visitor flows.
