New Zealand agents have a week to work out who pays for a Fijian tax that lands on holidays sold months ago,
Fiji’s Tourism Services Tax takes effect on 1 September, applying five per cent to licensed hotels, tour operators and cruise businesses with annual gross turnover above FJ$2 million. It was introduced under the Tourism Services Tax Act 2026 as part of the 2026/27 national budget, gazetted on 21 July, and sits separately from VAT and must be itemised on invoices. Revenue is expected to reach around FJ$70 million over the initial twelve month period and is directed entirely to Fiji Airways, which the Fijian government part owns and which continues to carry pressure from fuel costs and pandemic era losses.
The trade objection is not the tax. It is the trigger. Liability attaches to the date the service is delivered, not the date the booking was made, so travel contracted, invoiced and paid in full months ago now falls inside the net. Resorts have begun issuing revised invoices to guests holding confirmed reservations.
The Travel Agents’ Association of New Zealand has sought urgent talks with the Fijian government and wants bookings made before 1 September carved out. TAANZ has been explicit that it is not disputing Fiji’s right to set its own tax settings, and has pointed to limited consultation, a short lead time and unresolved questions about how the tax applies across net rates and existing contracts. TAANZ is working alongside the Australian Travel Industry Association who said the design and rollout reflect a complete lack of understanding” of how travel is bought and sold. Both bodies are meeting Fijian officials before commencement.
The exposure for this market is material. More than 219,000 New Zealanders visited Fiji in 2025, or 22.2 per cent of all arrivals, making New Zealand Fiji’s second largest source market behind Australia, a position it held through the first half of 2026.
Fiji’s Permanent Secretary for Finance, Shiri Goundar, has said operators would absorb the levy rather than lift prices. The Fiji Hotel and Tourism Association disputes that, saying member feedback indicates most affected operators intend to pass the cost to customers because absorbing a levy struck on gross turnover is not commercially sustainable. Local operators have made the same point publicly, noting that five per cent of turnover can consume a substantial share of margin.