Maldives Delays 17% Tourism Tax on Foreign Travel Agents to 2027

The Maldives government has officially delayed the implementation of a new 17% Goods and Services Tax (GST) that was originally set to target foreign travel agents and tour operators. The tax, which was intended to apply to margins and commissions earned on tourism products—including accommodation and excursions—was initially scheduled to come into force on October 1, 2026. Following significant pressure and lobbying from international trade bodies, including ABTA, the Tourism and Civil Aviation Minister Mohamed Ameen announced the postponement during the Maldives National Tourism Day celebrations on October 3, 2026.

This delay provides a critical reprieve for the global travel industry, which had expressed concerns regarding the administrative burden of registering with local tax authorities and the potential for increased costs to be passed down to consumers. While the law technically came into effect on October 1, the government has signaled a grace period, with the new enforcement date now set for April 1, 2027. This move reflects the government's attempt to balance revenue generation with the need to maintain the Maldives' competitiveness as a premier luxury destination.

International travel agents, tour operators, and travel management companies that sell Maldives-based tourism products are the primary groups affected by this policy shift. Additionally, travellers who were concerned about potential last-minute price hikes on their existing or upcoming bookings are directly impacted by this reprieve.

Makutet expects that the Maldives will use this six-month extension to refine the tax collection mechanism and potentially simplify the registration process for foreign entities. While the postponement is a win for the travel trade, the government's fiscal requirements remain high, suggesting that the tax will likely proceed in April 2027 without further delay. Travellers should anticipate that the cost of booking through third-party intermediaries may eventually rise once the tax is fully integrated into the local pricing structure.