Preparing for a trip to the Maldives? Brace yourself for increased costs ahead.

Preparing for a trip to the Maldives? Brace yourself for increased costs ahead.

The Maldives, a popular tourist destination known for its stunning beaches and luxury resorts, has announced a series of tax increases effective from December 1, 2022, and July 1, 2025. These changes will affect foreign travelers, particularly those in premium classes, and the local tourism industry.

From December 1, 2022, foreign economy class passengers departing from the Maldives will be charged a new departure tax of USD 30. This replaces the earlier Airport Service Charge that was in effect until December 31, 2021. Business class passengers will pay USD 60, first class passengers USD 90, and those traveling in private charter jets USD 120. Exemptions will be made for children under two years and passengers with diplomatic immunity.

In addition, an airport development fee will also be charged at the same rates for both foreign and local passengers flying internationally from Velana International Airport (MLE). Unlike the departure tax, only diplomats and passengers on direct transit flights are exempt from the airport development fee.

Transit passengers, other than those on direct transit flights and children younger than 2, will also be subject to the airport development fee. Everyone departing from any of the Maldives' airports must pay the departure tax, including locals.

The cumulative departure tax and airport development fees for foreign passengers departing from MLE will be USD 100 (economy class), USD 240 (business class), USD 480 (first class), and USD 960 (private charters) effective Dec. 1, 2022.

Looking ahead to July 1, 2025, the Goods and Services Tax rate in the Maldives will increase to 17% from 16%, affecting goods sold and services supplied by spas, shops, diving schools, water sports facilities, and other such facilities. This increase is expected to impact the local tourism industry and the cost of services for foreign travelers.

The Maldives Inland Revenue Authority (MIRA) announced these increases in early November. Notably, the Green Tax rates for hotels and resorts in the Maldives will double to $12 per person, per night for most hotels and resorts on Jan. 1, 2025. Hotels and guesthouses with fewer than 50 rooms will be charged $6 per person, per night.

These tax increases are part of the Maldives' efforts to diversify its economy and reduce its reliance on tourism. However, they may deter some foreign travelers, particularly those in premium classes, from visiting the Maldives.

Travel agencies such as Etihad Airlines and Beond are encouraging passengers and agents to book tickets before November 30 to avoid the increased taxes and fees. Booking flights before Dec. 1 could potentially help passengers save on the increased taxes and fees associated with the new departure tax and the upcoming Goods and Services Tax increase.

[1] Source: Maldives Inland Revenue Authority (MIRA) [3] Source: Beond and Etihad Airlines

1. Foreign travelers visiting the Maldives may want to consider booking flights before December 1, 2022, as increased taxes and fees will be implemented on that date.
2. The Maldives Inland Revenue Authority (MIRA) announced that foreign economy class passengers departing from the Maldives will be charged a new departure tax of USD 30, while business, first class, and private charter passengers will pay significantly more.
3. In addition to the departure tax, an airport development fee will also be charged at the same rates for both foreign and local passengers flying internationally from Velana International Airport (MLE). This fee will affect all travelers, with exemptions only for diplomats and passengers on direct transit flights.
4. Looking forward to July 1, 2025, the Goods and Services Tax rate in the Maldives will increase to 17%, impacting the cost of services for foreign travelers, particularly those in premium classes.
5. Hotels and resorts in the Maldives will also face increased taxes, as the Green Tax rates will double to $12 per person, per night for most hotels and resorts on January 1, 2025.
6. Travel guides and reviews can provide valuable insights for foreign travelers considering a trip to the Maldives, as they may want to factor in the increased taxes and fees when budgeting for their trip.
7. The tax increases are part of the Maldives' efforts to diversify its economy and reduce its reliance on tourism, but they may discourage some foreign travelers from visiting the popular tourist destination. Stay informed about flight deals, travel news, and lifestyle changes related to finance and general-news to make the most informed decisions about your travels.

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