Travellers who already booked Fiji holidays could pay more, travel groups warn

International travel associations are warning that Fiji's new Tourism Services Tax (TST) could lead to higher costs for travelers who have already booked their trips. The Australian Travel Industry Association (ATIA) and the Travel Agents Association of New Zealand (TAANZ) have called on the Fijian government to delay implementing the new tax, which is set to take effect on September 1st.

The tax, designed to apply to tourism operators with an annual turnover above FJ$2 million (NZ$1.4m), has raised concerns among travel businesses and consumers alike.

ATIA chief executive Dean Long criticized the tax, stating that it would make Fiji holidays more expensive for Australian travelers. Long emphasized that a retrospective application is not acceptable, as once a customer has paid, the price should be locked in. TAANZ chief executive Julie White echoed these concerns, stating that travellers who booked and agreed a price before September 1st should not be hit with an additional tax.

She warned that the timing is particularly concerning as it comes before the busy September and October school holiday travel period.

The tax applies to large-scale tourism operators, including hotels, tour operators, and cruise businesses. Fiji's tourism industry remains a popular destination for Australians and New Zealanders, but the new tax could threaten this trend. Travel agents, wholesalers, and tour operators are caught in the middle, having to explain and potentially administer a cost they did not create or foresee.

Business leaders are questioning the government's decision, arguing that it shows a lack of understanding of the international tourism industry and its pricing mechanisms.