It’s been a challenging week for Fiji tourism as both stakeholders and the Fiji tourism plant grapple with the implications of the new 5% Tourism Services Tax (TST) effective from 01 Sep and applying to existing bookings.
TAANZ has today advised it has arranged urgent talks with the Fijian Government over the implementation of the tax, citing concerns that travellers with existing bookings could face unexpected extra costs. The agent body 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.
“We’re 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,” says TAANZ ceo Julie White. “[Our] 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 [01 Sep],” she adds.
Clients who booked and agreed a price before 01 Sep should not be hit with an additional tax simply because they are travelling after that date, asserts TAANZ. The agent body also says the timing is ‘particularly concerning’ as it is just before the busy Sep/Oct 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.”
. . . In The Middle
Kiwi travel agents, wholesalers and tour operators are stuck in the middle, says White.
“They are being asked to explain and potentially administer a cost they did not create, could not have anticipated and have no control over,” she says.
“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 [01 Sep] as well.”
. . . Position
TAANZ believes the TST should apply according to the date a booking was made, rather than the date the travel or service takes place. White says this would provide a fair and practical transition for both travellers and the tour ism industry. TAANZ is working with the Australian Travel Industry Association, which has raised similar concerns regarding the implementation of the tax, and the pair are meeting with the Fijian Government ahead of 01 Sep.
The new tax, which is ring-fenced to support Fiji Airways, applies to tourism services, including hotels, restaurants, tour operators and cruise companies with annual turnover above FJD2 million.
. . . High Kiwi Demand
In 2025, more than 219,000 Kiwis visited Fiji, accounting for 22.2% of all visitor arrivals.
Travel Today also understands that there were record Kiwi arrivals to Fiji in Jul.
White says providing certainty for existing bookings will help maintain Kiwi traveller confidence in Fiji ‘and enable our travel industry to continue strongly supporting and selling the destination’.
