Kiwi agents and travellers to be reimbursed under new government scheme

A mixture of New Zealand Bank notes and coins with a Piggy Bank.

The New Zealand government has announced a scheme to support the recovery of refunds and credits owed to New Zealand consumers by overseas travel suppliers.

Under the Consumer Travel Reimbursement Scheme, the government will pay Kiwi travel agencies 7.5 per cent of all refunds and five per cent of credits successfully secured on behalf of consumers. The scheme will be funded to a maximum cap of NZ$47.6 million ($43.8 million).

“This will mean, for example, that if an agent recoups NZ$10,000 in a cash refund on cancelled travel, the customer gets that money back and the agent will receive NZ$750,” New Zealand Commerce and Consumer Affairs Minister Kris Faafoi said in a statement.

“If it’s a credit for the NZ$10,000 cancelled travel, the customer gets the credit and the agent receives NZ$500.”

Minister Faafoi said the scheme will be established as soon as practicable, with the NZ government working through details such as eligibility over the coming weeks.

“We want to get that money back for Kiwi customers and into the local economy as quickly as possible,” he said.

“I know that travel agents and wholesalers have been working hard to recover refunds and credits owed to New Zealand consumers, but are under severe financial pressure, with many facing the prospect of insolvency.”

New Zealand’s Ministry of Business, Innovation and Employment and the travel sector estimate around NZ$690 million ($634.6 million) of Kiwi consumers’ money is locked up because of COVID-19-related travel cancellations.


Featured image source: iStock/LazingBee

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]