Tourism tax to see changes as the Maldives government intends to propose an amendment that would double the green tax from $6 to $12 per person per night and increase the Tourism Goods and Services Tax (TGST) for visitors to 17%. One of the suggested modifications is an increase in the TGST, which is anticipated to take effect in June 2025, and a hike in the green tax, which will start in January 2025.
The proposed revisions would raise the green tax from $3 to $6 per person per night for guesthouses and tourist operators with less than 50 rooms, and raise the fee from $6 to $12 per person per night for resorts. Additionally, the administration wants to remove the green tax that is presently imposed on children under the age of two.
With these tourism tax adjustments, the government hopes to capitalise on the growing tourist industry and bring in more money for economic expansion. This comes after the TGST increased from 12% to 16% in January 2023.
In an effort to modernise and diversify the economy, tourism was introduced to Maldives in 1972. The Maldives was visited by a United Nations development team in the 1960s, but they were deemed unsuitable for tourism. However, Maldivian tourism has been booming since the opening of the first resort there in 1972. It is thought that the first group of tourists arrived in February 1972. With just two resorts that could accommodate around 280 beds at first, the Maldives’ tourism industry has grown to unprecedented heights, with more than 100 resorts currently operating.
