New Zealand tourism drives car rental growth and tax certainty in Fiji

New Zealand’s car rental industry is experiencing sustained growth, with the passenger car rental and hiring sector reaching NZ$2.3 billion in 2025. The market has seen a compound annual growth rate of 7.6% over the last five years, driven by rising international tourism and domestic travel.

There is increasing demand for specialized vehicle categories, including large passenger vans and minibuses for group travel, as well as luxury and classic cars for scenic touring. Seasonal shifts are also influencing the market, with a surge in demand for winter-ready vehicles suited for alpine and ski regions.

Separately, the Travel Agents’ Association of New Zealand (TAANZ) has welcomed a decision by the Fijian Government regarding a new 5% Tourism Services Tax (TST). The tax will only apply to new bookings made on or after 1 September 2026, providing certainty for New Zealand travelers who have already booked and paid for holidays prior to that date.