Tourists face higher fees as Maldives raises departure levy and green tax

As of December 1, 2024, the Maldives has implemented significant increases in departure and green taxes for tourists. The Maldives Inland Revenue Authority (MIRA) announced that the Departure Tax (DPT) has risen for passengers flying out of the country, impacting travelers of various classes differently. Economy class passengers will now pay $50 for DPT, double the previous amount, while business class fees have surged from $60 to $120. First class passengers face an even steeper increase, from $90 to $240, and those on private jets will now pay $480, a fourfold increase. These changes also apply to foreign tourists; for Maldivian citizens, however, the economy class rate remains at $12. Exemptions are granted to children under two years of age, transit passengers, and those with diplomatic immunity. In addition to the increased departure tax, the Maldives has also raised its Green Tax, a levy on tourists based on their length of stay. Previously, foreign tourists paid $6 per day for accommodations in larger resorts and $3 in guesthouses. With the new regulations, tourists staying at resorts, hotels, or tourist boats with over 50 rooms will see their Green Tax increase to $12 per day, while those at smaller guesthouses will pay $6 per day. This adjustment has significant implications for both the tourism sector and the overall economy of the Maldives, which heavily relies on international visitors. These tax hikes are likely a response to economic pressures faced by the Maldives, as the government seeks new revenue streams to fund infrastructure and service improvements, particularly at Velana International Airport, the country's major airport. MIRA clarified that the revenue generated from both the DPT and the Green Tax will support the upkeep of this crucial facility amid growing international travel demand and the need for modernization. This move is also understood as part of a broader trend of rising travel costs globally, as many tourism-dependent nations explore ways to maintain sustainable economic practices while managing increased visitor numbers. As the Maldives positions itself as a luxury travel destination, the rising costs could deter budget travelers but may be less impactful on high-end tourism, which is less price sensitive. Nonetheless, the hikes in both departure and green taxes imply that tourism in the Maldives is becoming increasingly expensive, prompting visitors to reconsider their travel budgets and overall itineraries. These tax changes have triggered discussions about affordability and accessibility to one of the world's most desirable vacation spots, reflecting a challenge for the tourism industry moving forward.