Departure tax too high — Parliamentary committee demands reduction

A Parliamentary committee has recommended that the Government review and reduce the departure tax, warning that the current rate is hurting Fiji’s tourism industry and undermining Fiji Airways’ competitiveness.

The Standing Committee on Social Affairs made the call after reviewing Fiji Airways’ 2023 Annual Report, which was tabled in Parliament this month.

“The committee recommends that the Government must review and decrease the departure tax which is currently affecting the tourism industry,” the report stated.

Fiji Airways chief executive officer Andre Viljoen raised similar concerns during the committee’s September hearing, describing the tax as a heavy burden on travellers.

“We fully understand the need for revenue collection, but departure tax significantly affects airline tickets. For a family of four or five, the added cost makes Fiji and Fiji Airways less competitive compared to other destinations,” Mr Viljoen told the committee.

The departure tax is paid by all passengers departing Fiji and is included in the ticket price.

Mr Viljoen said reducing the tax—and exploring alternative revenue measures—could deliver major benefits to both the national airline and the broader tourism sector.

Despite Fiji Airways recording a historic $1.8 billion in revenue in 2023, the airline continues to face stiff competition from regional destinations with lower departure-related costs.

The committee also cautioned that any increase in the departure tax would further impact tourism arrivals and airline operations.