The Maldives has delayed its planned 17 percent tax on foreign tour operators and digital booking platforms until April 1 next year. The levy was scheduled to take effect on October 1.

Tourism and Civil Aviation Minister Mohamed Amin announced the deferral during National Tourism Day celebrations. The decision followed pushback from international travel agencies and tour operators. The tax applies to overseas suppliers and digital aggregators that sell resort stays and packages without maintaining a physical office in the country.

Under the revised Tourism Goods and Services Tax framework, offshore booking channels and outbound wholesalers must register directly with Maldivian tax authorities. The government expects the broadened net to generate MVR1.6 billion ($104 million) in additional revenue ahead of its Visit Maldives 2027 promotional campaign.

Foreign distributors warned that adding a 17 percent assessment onto wholesale margins would force immediate retail price hikes across key feeder markets. Travel sellers in Europe and Asia raised concerns. The sudden rollout left no time to reprice contracted resort inventory or update customer billing systems.

For online travel platforms and regional wholesalers, the Maldives represents one of the highest average-order-value destinations in Asia-Pacific. Direct registration and local tax remittance mirror digital services taxes introduced across Southeast Asia. Still, applying the full 17 percent rate directly to foreign intermediaries creates immediate friction for packaged holiday sellers.

India remains one of the largest source markets for Maldivian resorts. That makes Indian travel operators particularly sensitive to the fiscal shift. The Outbound Tour Operators Association of India warned that the additional tax burden and registration compliance would make vacations uncompetitive against alternative island destinations in the region.

Source link