The Parliament of Maldives has passed key legislation to increase the Tourism Goods and Services Tax (TGST), Green Tax, and departure fees, with an aim to boost national revenue and support environmental sustainability initiatives. As one of the world’s premier travel destinations, known for its pristine beaches and rich marine biodiversity, the Maldives seeks to balance economic growth with its commitment to environmental preservation.
The approved bills propose a rise in TGST, which applies to accommodations, excursions, and other tourism-related services. This tax increase is expected to support critical public services and infrastructure improvements across the nation, providing long-term benefits to both residents and visitors. However, stakeholders in the tourism industry are carefully assessing the potential impact on travel demand, particularly among cost-sensitive segments, as this increase could raise overall travel expenses for tourists.
In addition to the TGST adjustments, the Parliament has endorsed increases in the Green Tax and departure fees. The Green Tax is a significant contributor to funding Maldives’ sustainability projects, especially those focused on protecting marine ecosystems and minimizing the carbon footprint associated with tourism. With the increase, the Maldives government aims to strengthen environmental conservation efforts while enhancing its appeal to eco-conscious travelers.
The revised departure fees will apply to both international and domestic departures, helping the Maldives address its evolving economic needs amid growing tourism numbers. Industry experts are optimistic that these measures will contribute to sustainable tourism practices without diminishing the Maldives’ standing as a premier, luxury travel destination.
