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Maldives tourism sector regulatory and tax changes

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-10 07:33 UTC → 2026-09-11 02:09 UTC · added removed

The Maldives is implementing new measures to regulate and increase revenue from its tourism sector. Initially, a bill was submitted to the People’s Majlis to impose a Goods and Services Tax (GST) on foreign tourism-related businesses, including offshore booking platforms, foreign tour operators, and overseas travel agents. This proposed amendment aims to apply the “destination principle” to the national tax framework, with projections suggesting an annual revenue increase of approximately MVR 1.6 billion. Following this, the government announced it would pursue tourism leaseholders for unpaid rent, fines, and penalties under the Tourism Act. On August 31, 2026, President Mohamed Muizzu ratified several legislative amendments to formalize these fiscal and regulatory shifts. Under new amendments to the Foreign Currency Act, resort operators must now exchange 40 percent of their foreign currency earnings through local banks to boost the Maldives Monetary Authority’s foreign reserves. The ratified GST Act amendments, which apply to foreign tour operators, travel agents, and offshore booking platforms, are scheduled to begin collection in October. Furthermore, an amendment to the Income Tax Act doubles the withholding tax on non-resident contractors from 5 percent to 10 percent. On September 8, 2026, industry concerns intensified regarding the implementation of these reforms. European organizations, such as ECTAA, have expressed alarm over the short timeframe and potential administrative burdens, calling for delays and clearer transition rules. Locally, the Maldives Association of Tourism Industry (MATI) has requested government discussions. MATI Chairman Hussain Afeef noted that resort operators have offered to open financial records to demonstrate how the 40 percent currency conversion requirement might impact operational costs and imports. On September 10, 2026, Tourism Minister Mohamed Ameen confirmed that unpaid resort rent and fines owed to the state have exceeded $90 million, with some debts dating back to 2013.

Versions

  1. 2026-09-11 02:09 UTC Maldives tourism sector regulatory and tax changes
  2. 2026-09-10 07:33 UTC Maldives tourism sector regulatory and tax changes
  3. 2026-09-09 04:36 UTC Maldives tourism sector regulatory and tax changes
  4. 2026-08-31 10:06 UTC Maldives tourism sector regulatory and tax changes
  5. 2026-08-23 21:53 UTC Maldives tourism sector regulatory and tax changes

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