Mr Goff said Fiji had to be sent a strong message that its international relationships would not continue as normal while the democratically elected Government remained hostage.
But rugby administrators in Suva lashed out at the decision, asking how stopping the national side and under-21 team from travelling to New Zealand would affect the situation.
"How is this going to have any impact, how will it bring about a resolution?" said the chief executive of the Fijian Rugby Football Union, Bob Challenor.
"We are sick of New Zealand operating as a colonial power, telling us how to deal with this situation. It absolutely reeks of selective discrimination."
The under-21 side were due to gather in Suva today to prepare for a tournament in New Zealand. "We will have a lot of very disappointed boys here."
Mr Challenor said his union would retaliate by reviewing contracts with New Zealand companies which supplied goods such as apparel, boots and footballs.
The New Zealand Rugby Football Union chairman, Murray McCaw, said last night that he understood the Government's decision but did not necessarily support it.
"We were hoping that the Government was going to take other measures to express New Zealand's disappointment," he said.
The union would have preferred the tours to go ahead. "[But] at the end of the day it's a political decision."
Mr Goff said New Zealand wanted to send a very clear message.
"We cannot pretend that things are normal and allow normal contacts to go ahead," he said.
"Symbolically, this is very important because every Fijian will know that the games have been cancelled and the reasons for that.
"That may not provoke a happy reaction ... but it will back up the military's comments that if you destroy your democracy and give way to the gun then there will be consequences for your international relationships."
The blacklisting of those allegedly associated with the coup was a more direct "smart sanction" to affect Speight and his supporters, said Mr Goff.
Speight was banned several weeks ago from entering New Zealand.
"We have now been able to collect a list of 85 names consisting of military leaders, politicians, people known to have criminal backgrounds and others who have participated in, and directly supported the taking of, the hostages.
"These people, some of whom will include Fijian citizens with family in New Zealand, will now have a watch against their name."
Mr Goff said he would not release the names until he had evidence to support claims they were involved in the coup.
Meanwhile, the Ministry of Foreign Affairs and Trade has urged New Zealanders living in or around Suva to leave. In its Fijian travel advisory, the ministry also said those in Fiji should seriously consider whether they needed to stay. Anyone still there should prepare emergency plans to evacuate.
George Speight talks to IRN's Barry Soper
(10 min).
