The Travel Agents’ Association of New Zealand has arranged urgent talks with the Fijian Government over the implementation of the new five per cent Tourism Services Tax, warning Kiwi travellers with existing bookings could face unexpected additional costs.
TAANZ says it is not opposing Fiji’s right to introduce the tax but wants bookings made before the September 1 commencement date to be exempt.
The new five per cent Tourism Services Tax will apply to tourism services, including hotels, restaurants and tour operators with annual turnover above $2 million. Revenue collected from the tax is to be ring-fenced to support Fiji Airways.
TAANZ chief executive officer Julie White said the association’s main concern was how the tax would affect holidays booked and, in many cases, fully paid for before the new tax was announced.
“Our concern is simple: travellers who booked and agreed a price before 1 September should not be hit with an additional tax simply because they are travelling after that date,” Ms White said.
“There is a significant volume of existing Fiji bookings where the price has already been agreed, and in many cases the customer has paid in full.”
She said those travellers had a reasonable expectation their holidays had already been paid for and should not suddenly face another cost.
The timing is also concerning for the New Zealand travel industry because the tax takes effect immediately before the busy September and October school holiday period.
“Families have planned and budgeted for these holidays months in advance,” Ms White said.
She said group, wedding and corporate bookings could also be affected where contracts and prices had already been finalised.
TAANZ also wants clarification on who is responsible for collecting the tax, its treatment of net rates and existing contracts, and the division of responsibilities between suppliers and travel agents.
The association wants the tax to apply according to when a booking or purchase was made rather than when the travel takes place.
“Grandfathering existing bookings is the fairest outcome,” Ms White said.
“It protects travellers who purchased in good faith, gives the travel industry certainty and allows the new tax to be implemented cleanly for new bookings from 1 September.”
TAANZ said more than 219,000 New Zealanders visited Fiji in 2025, accounting for 22.2 per cent of visitor arrivals and making New Zealand Fiji’s second-largest visitor market behind Australia.
Ms White said providing certainty would help maintain Kiwi confidence in Fiji as a destination.
TAANZ is working alongside the Australian Travel Industry Association, which has raised similar concerns.
The two organisations are expected to meet with the Fijian Government ahead of the September 1 implementation date to seek clarity and raise concerns over existing bookings.
