This Content Is Only For Subscribers
The Travel Agents’ Association of New Zealand (TAANZ) has arranged urgent talks with the Fijian Government over the implementation of Fiji’s new Tourism Services Tax (TST), amid concerns Kiwi travellers with existing bookings could face unexpected additional costs.
The new 5% Tourism Services Tax takes effect from September 1 2026 and applies to tourism services, including hotels, restaurants, and tour operators with annual turnover above FJ$2 million. The 5% tax collected is ring-fenced specifically to support Fiji Airways.
TAANZ recognises Fiji’s right to determine its own tax settings and is not opposing the introduction of the TST. Its concern is with the way the tax is being implemented, including the limited consultation, the short lead time and, most importantly, the impact on bookings made or paid for before 1 September.
TAANZ CEO Julie White says travel is routinely booked, contracted and paid for many months in advance.
“Our concern is simple: travellers who booked and agreed a price before September 1 should not be hit with an additional tax simply because they are travelling after that date.
“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. Those travellers have every reasonable expectation that their holiday is paid for.
“They should not suddenly be faced with an additional cost because a new tax has been introduced after they made their booking.”
The timing is particularly concerning as it comes immediately before the busy September and October school holiday travel period.
“Families have planned and budgeted for these holidays months in advance. There are also group, wedding, corporate and other large bookings where contracts and pricing have already been finalised,” Julie says.
“Reopening those arrangements creates uncertainty for travellers. Travel agents, wholesalers and tour operators are stuck in the middle. They are being asked to explain and potentially administer a cost they did not create, could not have anticipated and have no control over.
“At the same time, basic practicalities remain unclear, including who is responsible for collecting the tax, how it applies to net rates and existing contracts, and where a supplier ends and an agent begins. These questions need clarity not only for existing bookings, but for new bookings from September 1 as well.”
TAANZ says the issue is compounded by a lack of clarity around the practical implementation of the tax, including how it will be treated across different types of bookings and existing contractual arrangements.
TAANZ’s position is that the Tourism Services Tax should apply according to the date a booking or purchase is made, rather than simply the date the travel or service takes place. Bookings entered into before September 1 2026 should therefore be grandfathered and remain under the arrangements that applied when they were purchased.
Julie says this would provide a fair and practical transition for both travellers and the tourism industry.
“We are not asking Fiji to reconsider its right to introduce the tax. We are asking for a sensible implementation that recognises the way international travel is actually bought and sold.
“Grandfathering existing bookings is the fairest outcome. 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 September 1.”
New Zealand is one of Fiji’s most important visitor markets. In 2025, more than 219,000 New Zealanders travelled to Fiji, accounting for 22.2% of all visitor arrivals and making New Zealand Fiji’s second-largest source market behind Australia. New Zealand remained the second-largest source market in the first half of 2026.
“New Zealanders have an incredibly strong relationship with Fiji. It is one of our most popular international holiday destinations and there is a substantial volume of forward bookings already sitting with New Zealand travel agents, wholesalers, and tour operators,” Julie says.
“Providing certainty for those existing bookings will help maintain Kiwi traveller confidence in Fiji and enable our travel industry to continue strongly supporting and selling the destination.”
TAANZ is working alongside the Australian Travel Industry Association (ATIA), which has raised similar concerns regarding the retrospective impact of the tax on existing bookings.
TAANZ and ATIA are meeting with the Fijian Government ahead of the September 1 commencement date to raise these concerns and seek greater certainty for travellers and the travel industry.
