Departure tax, development fees to be hiked from today

Dec 1, 2024, 1:45 PM

Flight prepares to land at Velana International Airport -- Photo: Adhadhu

Departure tax and airport development fees have been increased from today under the amendments to the Airport Taxes and Fees Act.

The law was amended to increase the state's dollar revenue and ease the foreign exchange deficit. The change will also increase the state's total revenue.

With the changes in taxes and fees for outbound passengers, tickets for all but economy-class Maldivian passengers will be more expensive.

Amount added to ticket prices

Economy class passengers: USD 50 for departure tax, USD 50 for airport development fee
Business class passengers: USD 120 for departure tax, USD 120 for airport development fee
First class passengers: USD 240 for departure tax, USD 240 for airport development fee
Private jet passengers: USD 480 for departure tax, USD 480 for airport development fee

According to the budget estimates, MVR 2 billion (USD 131 million) can be raised next year with the increase in airport development fee rates. The increase in the departure tax rate would bring in MVR 1.9 billion (USD 120 million).

Despite the predicted increase in state revenue, the tourism industry is concerned about the hikes in airport fees and taxes. Other taxes related to the industry will also be higher next year and this could reduce the number of tourists.

Local guesthouses and the Maldives Association for Travel Agents and Tour Operators (MATATO) have expressed concern over the changes.

This has also grabbed the attention of global media with international news agencies reporting that the Maldives' will be more expensive in 2025.

Tourism MATATO Tax hike Guesthouse Tourism Velana International Airport

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