MALDIVIAN tour operators have expressed concern following the return of a bed tax that was meant to have been laid to rest in 2013.
The US$8 tax per bed per night, which was allowed to lapse in December, was restored last month and will be discontinued only in November 2014, when national GST rates rise from eight to 12 per cent (TTG Asia e-Daily, June 13, 2013).
Shafraz Fazley, managing director of Viluxor Holidays, said ad hoc tax changes cause a lot of operational issues, as brochures have been printed at considerable cost, particularly for UK and China clients.
Mohamed Ali, secretary general of the Maldives Association of Yacht Agents, said operators with two- or three-year contracts have been put in a spot, as they had planned rates sans bed tax.
But Maldives Association of Tourism Industry’s secretary general, Ahmed Nazeer, said hoteliers were in agreement with restoration of the taxes, pointing out that they were required to continue social welfare schemes in the Maldives.
David Kevan, of UK-based Chic Locations, noted that the four percentage point increase in GST in November will add about 125 pounds (US$210) to a seven-night holiday, which most clients will find easy to absorb, particularly in the winter season.
