Maldives ‘set to postpone’ 17% tax on foreign travel companies

The Maldives appears to have delayed a controversial tourism tax after intense lobbying against the plans by the UK travel trade.

Industry bodies feared the 17% Tourism Goods and Services Tax (TGST) from October 1 would hit the peak winter sun travel period for the Indian Ocean island nation and led to Abta writing to the Maldives president as it escalated appeals over the tax applying to companies selling the destination.

However, local media in the archipelago reported on Saturday that the Maldives government had delayed implementation of the tax on foreign travel agencies, tour operators and offshore booking platforms until April 1, 2027.

Tourism and civil aviation minister Mohamed Ameen was understood to have made the announcement during a national tourism day event attended by senior government officials and tourism industry stakeholders on the islands.

But no mention of the tax was made in an earlier official statement issued by the tourism and civil aviation ministry to mark World Tourism Day and the country’s 54th national tourism day on Saturday (October 3).

The statement, dated September 27, pointed to a tourism masterplan to embrace digital and AI technology as a driver of innovation and new business in the tourism sector as the government prepares for Visit Maldives Year 2027.

Abta is now seeking formal confirmation of the postponement of the tax being imposed.

Industry relation director Susan Deer said: “We understand the Maldives tourism minister has said that implementation of the new tax on overseas travel businesses will be postponed. 

“It was reported in Maldives media that implementation of the tax will be postponed until April 2027. Abta is seeking formal confirmation of the postponement and next steps, given the law came into force on 1 October, and we will update members once we have heard more.”

She added: “Abta has been working hard behind the scenes, including with the UK’s High Commissioner, and international associations, to put members’ concerns to the Maldives government about the new tax.

“This has included calling for postponement, given that it was brought in without any prior warning or consultation with the international industry, as well as raising a number of other points, including seeking clarification on how this applies to agents. 

“It appears from the local media reports that the government has listened and is acting on our calls, which sounds like a positive development.

“However, we recognise that until there is official confirmation and proper engagement between the government and industry, the situation remains difficult for members. We are continuing to address this issue through all of the avenues available to us.”

The Maldives attracted a record 2.25 million visitors in 2025 and reached its one millionth visitor target on schedule earlier this year, despite serious disruption to international air travel, according to Ameen. 

He said: “As we prepare for Visit Maldives Year 2027, our aim is to give every guest the finest service and an experience that brings them back. Just as importantly, we want the benefits of tourism to be felt in every community across the Maldives.     

“Our tourism masterplan sets a clear path to bring the entire industry into the digital age."