The Maldivian government has announced significant tax reforms aimed at addressing fiscal stability and supporting environmental conservation efforts. These changes, which include adjustments to the Green Tax, airport departure fees, and other tourism-related charges, are part of a broader strategy to enhance the country’s economic sustainability while safeguarding its natural assets.
Effective from January 2025, the Green Tax levied on tourists will double, with larger resorts increasing the nightly fee from $6 to $12 per guest. Accommodations with fewer than 50 rooms will see the rate rise from $3 to $6 per person. The government has justified the hike as necessary to mitigate the impacts of climate change and to preserve the Maldives’ fragile marine ecosystems, which play a critical role in its tourism appeal.
In addition to the Green Tax adjustments, airport departure fees have also been revised. From December 2024, international travelers in economy class are required to pay $50, up from the previous $30. For business class and first-class passengers, the fees are now $120 and $240, respectively, while private jet travelers face a charge of $480. These increases accompany the existing Airport Development Fee, which ranges from $50 to $480 depending on the travel class.
The proposed measures are anticipated to generate significant revenue, which will be directed toward enhancing airport infrastructure and addressing public debt concerns. The government has emphasized the importance of these reforms in ensuring the Maldives remains competitive in the global tourism market while maintaining high standards for visitors.
Bookings made before January 1, 2025, will not be subject to the increased Green Tax rates, offering some reprieve for early planners. However, the tax hike may affect future booking patterns, particularly among families and long-term holidaymakers who are likely to bear the brunt of the additional costs.
Since its introduction in 2016, the Green Tax has been a vital source of revenue for the Maldives, contributing to both environmental conservation projects and the country’s economic framework. The upcoming adjustments reflect the government’s commitment to addressing fiscal challenges while continuing to prioritize sustainable tourism practices.
These initiatives form part of a larger economic agenda that includes increasing the Tourism Goods and Services Tax (TGST) from 16% to 17% by July 2025. Collectively, these changes aim to fortify the nation’s financial structure and enhance its ability to address mounting economic pressures while sustaining its reputation as a premier travel destination.
