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The Maldives is Raising Tourist Taxes: What Will Change?

The Maldives is Raising Tourist Taxes: What Will Change?

November 27, 2024,4 min. to read

From December 1, 2024, the Maldives, a popular destination for tourists, will introduce new fees, making a vacation on these exotic islands even more expensive. This decision is part of the government's efforts to increase the budget and is aimed at developing infrastructure, improving service quality, and protecting the unique ecosystem of the archipelago.

Exit Taxes: Significant Increases

The main change will affect airport fees, which will now be significantly higher. Specifically, for economy class passengers, the exit fee will rise from $30 to $50, for business class from $60 to $120, and for first-class travelers from $90 to $240. The most significant increase will affect private plane owners, for whom the fee will increase from $120 to $480. These fees apply to all foreign tourists, regardless of age or nationality, and are included in the price of airline tickets, so travelers won’t have to pay them separately when departing.

Green Tax: Double Increase Starting 2025

Additionally, starting January 1, 2025, the Maldives will increase the green tax (Green Tax), which is charged to tourists for each day of their stay in hotels. For small accommodations (fewer than 50 rooms), the tax will increase from $3 to $6 per night, and for large resorts, from $6 to $12. This tax is included in the booking price and is allocated for environmental protection efforts in the archipelago, maintaining the cleanliness of coastal areas, and preserving the unique flora and fauna.

Other Tax Changes: Higher Rates

In addition to the environmental tax increase, starting July 1, 2025, the tax on tourist goods and services (TGST) will also rise from 16% to 17%. Resorts and hotels in the Maldives will continue to charge a 10% service fee, which will be added to the cost of additional services.

What Does This Mean for Tourists?

The tax increases will lead to higher costs for trips to the Maldives. Tour operators are already warning clients about potential price hikes for packages, as the new taxes will be automatically included in the tour prices. At the same time, the government hopes that the increased taxes will generate additional funds for infrastructure improvements and the preservation of natural resources, which will also positively impact the archipelago’s attractiveness to tourists. In 2023, the Maldives welcomed around 1.8 million foreign tourists, and tourism revenue reached $3.6 billion. It is expected that the new measures will help raise an additional $175 million, which will be used for further tourism development and nature conservation. Although the tax increases may slightly affect the cost of a vacation, the Maldives remains one of the most popular tourist destinations due to its unique natural beauty, high service levels, and opportunities for active leisure.

Conclusion: How Will the Tax Increases Affect Vacation Costs?

From December 1, 2024, and January 1, 2025, significant changes in trip costs are expected for tourists visiting the Maldives. The tax hikes are part of efforts to improve the tourist infrastructure and preserve the environment. For those planning to visit the Maldives soon, it’s important to factor in the increased fees, which may impact tour prices. Nevertheless, the exotic appeal of the Maldives will continue to attract travelers from around the world, thanks to its unique natural resources and top-tier resorts.

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