Tourists to Maldives now to pay a Green Tax to fund conservation

DESPITE earlier resistance from tourism operators, the Maldivian authorities have begun implementing a new Green Tax at US$6 per tourist bed from November 1.

The Green Tax, imposed through an amendment to the Maldives Tourism Act, is payable by tourists who stay in resorts, hotels and tourist vessels. Maldivians and resident permit holders who stay in such properties are exempted, clarified the Maldives Inland Revenue Authority.

Guesthouses are exempted too.

Earlier in January, tourism minister Ahmed Adheeb said the new tax is aimed at protecting the Maldives’ fragile environment. “Revenue generated from the tax will go into managing the waste from local resorts and other islands,” he told local media.

Tourism operators, who declined to be named, have in the past complained of an over-tax regime since 2014. An airport exit tax of US$25 per person came into effect in July last year. While the Maldives discontinued a US$8 tax per bed per night in November last year, Goods and Services Tax rose from eight to 12 per cent that same month.

In related news, official data has shown a rising demand for mid- and lower-end rooms in the high-end destination. Resort occupancy fell by 3.5 per cent in September 2015 while guesthouse occupancy had risen by 7.2 per cent.

Mohamed Ali, vice president of the Association of Travel Agents, said while arrivals are on track this year, many visitors are opting for new mid- and low-end accommodation like guesthouses.

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