Departure tax too high — Parliamentary committee recommends 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's departure tax has been increasing during the 2023-2025 period: it was $125 from August 1, 2023, and then raised to $140 from January 1, 2024. The tax further increased to $170 on August 1, 2024, and is set to rise again to $200 on August 1, 2025. 

Here is a timeline of the departure tax changes:

• August 1, 2023 - December 31, 2023: The departure tax was $125.
• January 1, 2024 - July 31, 2024: The departure tax increased to $140.
• August 1, 2024 - July 31, 2025: The departure tax is $170.
• Effective August 1, 2025: The departure tax is scheduled to increase to $200. 

Former 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.