Maldives Tax Hikes: What’s New and How It Impacts You

Writer

November 6, 2024

On 5 November 2024, the Maldives government established important changes to three key tax acts that will impact the tourism industry and travelers. These amendments are part of the government’s economic strategy to reduce the budget deficit and increase foreign currency inflows. The updated rates for Tourism Goods and Services Tax (TGST), Green Tax (GRT), and Airport Taxes and Fees were outlined in the amendments, and the changes are expected to affect both businesses and travelers. The information below is sourced from the Maldives Inland Revenue Authority (MIRA).

Tourism Goods and Services Tax (TGST)

Starting 1 July 2025, the TGST rate for tourism sector goods and services will increase from 16% to 17%. This increase will be effective after a transitional period from 1 January 2023 to 30 June 2025, when the rate will remain at 16%.

This change impacts tourism businesses, particularly those who need to prepare for the rate increase. Additionally, the Seventh Amendment to the Goods and Services Tax Act introduces a key update: staff cafes in tourism establishments and shops can now register for the general GST at 8%. Previously, only staff shops had this option, giving businesses more flexibility when catering to their employees.

Green Tax (GRT) Changes

Effective 1 January 2025, the Green Tax (GRT) rates will change. The Fourteenth Amendment to the Maldives Tourism Act sets the following new rates:

Tourist resorts, integrated resorts, resort hotels, and tourist vessels: USD 12 per tourist per day.
Hotels and guesthouses on uninhabited islands: USD 12 per tourist per day.
Hotels and guesthouses on inhabited islands:
For more than 50 rooms: USD 12 per tourist per day.
For 50 rooms or fewer: USD 6 per tourist per day.

Additionally, from 1 January 2025, infants under the age of 2 years will be exempt from the Green Tax, offering relief for families traveling to the Maldives.

Airport Taxes and Fees

The amendments to Departure Tax and Airport Development Fees (ADF) will take effect on 1 December 2024. These changes will affect both Maldivian and foreign passengers departing from the Maldives. The updated rates are as follows:

Departure Tax:

Authority),Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 480

As specified in the Second Amendment to the Airport Taxes and Fees Act

Airport Development Fee (ADF):

Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 480

As specified in the Second Amendment to the Airport Taxes and Fees Act

However, the ADF and Departure Tax rates for Maldivian economy class passengers will remain unchanged.

These changes are part of the Second Amendment to the Airport Taxes and Fees Act and will affect all passengers departing from Velana International Airport.

Refund Policy for Excess Taxes

Passengers who have been charged incorrectly or have overpaid the Departure Tax or ADF will be able to request a refund from the Maldives Inland Revenue Authority (MIRA). This provision ensures that any excess taxes paid by passengers will be refunded.

Implementation Dates and Regulations

The effective date for the amendments is November 5, 2024, but the full implementation of these changes will happen on different dates:

TGST: The increase to 17% will take effect from 1 July 2025.
Green Tax: The new rates will apply starting on 1 January 2025.
Airport Taxes and Fees: The updated rates will be enforced on 1 December 2024.

The Maldives Inland Revenue Authority (MIRA) will publish regulatory amendments within 30 days to ensure smooth enforcement of these changes.

Tourists planning to visit the Maldives should be prepared for higher taxes, especially on accommodation, airport services, and departure fees. Businesses in the tourism sector will also need to adjust to the new rates and ensure that they comply with the updated regulations.

Stay informed and prepared for your next visit to the Maldives!

This article’s information is sourced from MIRA and reflects the latest updates to the Maldives’ tax policies.

Airport Tax, Departure Tax, Green Tax (GRT), Maldives Inland Revenue Authority (MIRA), Maldives Tax Policy, Tourism Goods and Services Tax (TGST)

November 6, 2024

The Future of Travel: Social Commerce Insights from Jeremy Jauncey, Sarah Kopit & Seth Borko

In today’s rapidly evolving digital landscape, social commerce is redefining the way travelers discover, plan, and book their trips. On a recent episode of the Skift Podcast, Jeremy Jauncey, CEO of Beautiful Destinations,joined Sarah Kopit and Seth Borko to discuss the growing influence of social media platforms like TikTok and Instagram on travel. Their insights highlight how brands and destinations can leverage these changes to engage modern travelers more effectively.

“We are in the most exciting time in the history of travel marketing,” said Jauncey, whose company Beautiful Destinations has pioneered high-quality digital storytelling to inspire wanderlust worldwide. “The way people discover travel is fundamentally different now. The traditional model of searching for a destination, visiting a travel agent, and booking through a website is rapidly being replaced by social commerce.”

Social commerce merges social media influence with direct consumer purchases, allowing users to discover destinations through organic content and seamlessly book their next trip without leaving the app. Platforms like TikTok, Instagram, and YouTube have become virtual travel agencies, where users find inspiration and make real-time booking decisions based on what they see.

According to Seth Borko, a senior research analyst at Skift, younger generations are driving this shift, placing greater trust in influencers and user-generated content over traditional advertisements.

“Millennials and Gen Z are scrolling through their feeds and seeing firsthand experiences from people they follow and admire. That authenticity is what makes them act,” Borko explained. “This isn’t just advertising; this is experiential storytelling with a call to action.”

Why Is Short-Form Video the Future of Travel Marketing?

One of the key drivers behind this transformation is short-form video content.

“Instagram Reels and TikTok have changed the game,” Jauncey noted. “A 15-second video can transport a user to a remote island in the Maldives or a street market in Bangkok. And with a simple tap, they can book a flight, hotel, or experience right there on the platform.”

Unlike traditional marketing strategies, which often require multiple steps from inspiration to booking, social commerce streamlines the process. Integrated ‘Book Now’ buttons and social-first travel agencies enable travelers to go from watching a video to confirming a reservation within minutes.

Sarah Kopit, Editor-in-Chief at Skift, emphasized the importance of adapting to these changing consumer behaviors.

“Travel companies that are still relying on static images and generic ads are falling behind,” Kopit stressed. “You need to be in the spaces where your audience spends time – and right now, that’s TikTok, Instagram, and even emerging platforms like BeReal.”

How Are Influencers and Community Engagement Driving Travel Bookings?

The conversation also highlighted the crucial role of content creators and travel influencers in driving bookings. Unlike traditional advertising, influencer marketing fosters trust through authenticity and relatability.

“Travelers want to see real people experiencing real moments,” Jauncey explained. “It’s no longer about polished, overproduced ads. It’s about storytelling through a lens that feels personal and attainable.”

This shift has led to the rise of micro-influencers—travel creators with smaller yet highly engaged audiences. These influencers often provide in-depth guides, real-time experiences, and unfiltered reviews, making their recommendations more credible.

“We’re seeing a shift away from big celebrity endorsements toward niche, passionate creators who actually visit and experience the places they promote,” Borko added. “They drive more conversions because their followers see them as trustworthy sources.”

What Does the Future of Travel Marketing Look Like?

As social commerce continues to expand, industry experts agree that travel brands must adapt or risk being left behind. Key takeaways from this discussion include:

• Short-form video is the future of travel marketing. Brands should invest in compelling, mobile-friendly content that captures users’ attention within seconds.

• Seamless booking experiences drive conversions. The fewer steps between inspiration and purchase, the higher the likelihood of bookings.

• Authenticity is key. Travelers engage more with real, relatable experiences from influencers and user-generated content.

• Community engagement matters. Travel brands that foster relationships with their audiences rather than solely pushing sales will see greater long-term success.

“The brands that will succeed in this new era of travel are the ones that recognize the power of social discovery and immediate action,” Jauncey concluded. “This is no longer the future – it’s happening right now.”

As the travel industry shifts toward experience-driven, mobile-first marketing, companies that embrace social commerce will be at the forefront of the next travel boom. For travel brands and destinations, the message is clear: adapt now, or risk being left behind in a world where the next viral destination is just one scroll away.

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