Govt weighs departure tax cuts in low tourism season

Government is exploring ways to reduce departure tax during Fiji's low tourism season to help grow the transit market and make the destination more competitive.

Director of Tourism Jacinta Lal told Parliament’s Standing Committee on Foreign Affairs and Defence yesterday that discussions were ongoing with the Ministry of Finance about making the tax more flexible.

“These discussions we do hope to continue with the Ministry of Finance as we go forward, to make sure the tax is flexible enough while not impacting the overall fiscal space that the Fiji economy is in,” Ms Lal said.

“At least looking at seasonal travels when Fiji is very low, reducing some of the taxes to ensure that the transit market can grow.”

Her comments came as the committee reviewed the Ministry of Commerce, Trade, Tourism and Transport’s 2019–2021 annual reports.

Opposition Member of Parliament Rinesh Sharma questioned how the Government planned to reduce the tax and explore alternatives to make Fiji more affordable for international visitors.

The departure tax has risen sharply in recent years — from $125 in August 2023 to $200 since August last year.

Ms Lal said there had been strong industry calls not to return to pre‑COVID tax levels despite the economic recovery.

“There was a big plea… it doesn’t mean the tax regime has to return to that, and the status quo was no longer pre‑COVID,” she said.

The Ministry of Finance negotiated to stagger the increases rather than implement them all at once.

The Civil Aviation Authority of Fiji has also called for further increases, though Ms Lal noted it is one of the biggest beneficiaries of departure tax revenue.

The departure tax is paid by all passengers leaving Fiji and is included in ticket prices.

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