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The Travel Agents' Association of New Zealand has welcomed Fiji's decision to apply its new 5% Tourism Services Tax only to new bookings made from 1 September. Existing bookings will not be subject to the tax.
Under the approach confirmed by the Fijian Government, bookings made before 1 September will not attract the new charge, even if the travel or tourism service takes place later. For bookings made from 1 September, the tax will apply to qualifying tourism services and operators under Fiji's Tourism Services Tax Act 2026 and is scheduled to remain in place until 31 August 2027.
The clarification removes uncertainty for travellers who had already paid for holidays to one of New Zealand's most popular overseas destinations. It also resolves concerns in parts of the travel sector that the tax might be imposed on existing reservations at short notice.
Julie White, Chief Executive of the Travel Agents' Association of New Zealand, said the association's focus had been on how the tax would be introduced, rather than Fiji's decision to create it.
"This gives Kiwi travellers the certainty they needed. Those who made their bookings before 1 September can now travel knowing they will not face an unexpected additional tax on an existing booking," White said.
She said the industry's concerns centred on the earlier implementation timetable and how bookings already in the system would be treated.
"TAANZ has been very clear that our concern was never about Fiji's right to introduce the tax. Our concern was the way it would apply to existing bookings, the short implementation timeframe and the uncertainty this was creating for travellers and the travel industry.
"We are therefore very pleased the Fijian Government has listened to the concerns raised by the tourism and travel sectors and adopted a practical transition approach," White said.
Popular route
Fiji has long been a leading holiday market for New Zealand travellers, helped by frequent air links and close family and cultural ties between the two countries. The destination is a regular feature of trans-Tasman and Pacific travel demand, so agents and consumers closely watch policy changes affecting holiday costs.
White said price certainty matters for travellers who book in advance and expect to know the total cost of their trip.
"New Zealanders love travelling to Fiji. It is a destination people return to time and again for its people, hospitality, beaches and the ease of getting there from New Zealand," White said.
"Providing certainty around existing bookings is important for maintaining that confidence. It allows travellers to look forward to their holiday rather than worrying about whether the cost may change after they have already booked and paid," she said.
Industry response
The association also pointed to discussions between the Fijian authorities, tourism representatives and travel industry groups as the issue was worked through. That engagement appears to have shaped a transition arrangement that preserves the tax for new sales while exempting earlier bookings.
For travel sellers, the distinction is significant because many holidays are packaged and paid for well before departure. Applying a new tax to already confirmed bookings can create pricing disputes, repayment questions and administrative work across agencies, wholesalers and suppliers.
White said the outcome showed the value of consultation between governments and industry participants when policy changes affect bookings already made.
"This is a good example of what can be achieved when government and industry listen to each other and work through the practical impacts of a policy," White said.
"We appreciate the engagement from our industry colleagues in Fiji and Australia, and the willingness of the Fijian Government to respond to the concerns that were being raised," she said.
The tax will now apply only to bookings created from 1 September, giving travel advisers a clearer basis for discussing costs with clients considering Fiji holidays after that point. The association said travellers planning future trips should check how the new charge applies when making bookings.
White said the clarification had resolved a key issue for the market.
"Today's announcement removes a significant area of uncertainty and is a positive outcome for travellers, travel businesses and Fiji's tourism industry," White said.
"Fiji remains very much open for business, and we expect it will continue to be a firm favourite with New Zealand travellers," she said.