The Maldivian government plans to implement significant tax hikes starting from january 2025 that will directly affect the tourism sector, including an increase in the Tourism Goods and Services Tax (TGST) from 16% to 17%. Additionally, the Green Tax will double for certain accommodations, which could lead to higher costs for tourists staying in resorts. The Maldives’ 2025 tax hikes will have a ripple effect on prices for travelers across the tourism sector.

• For guesthouses with fewer than 50 rooms, the Green Tax will increase from USD 3 to USD 6 per night per person.
• For resorts, city hotels, and larger establishments (with more than 50 rooms), the Green Tax will rise from USD 6 to USD 12 per night per person.

These proposed tax hikes are intended to generate more revenue for public finances, but they could lead to higher travel costs for families and other tourists. To better understand the financial impact on visitors, you can read about how tourism taxes affect holiday costs globally.

Airport Departure Tax Increases in 2025

The airport departure taxes for travelers leaving the Maldives are also set to increase by 2025. Here’s a detailed breakdown of the changes:

• Economy class (foreign passengers): from USD 30 to USD 50.
• Economy class (Maldivian passengers): no change.
• Business class passengers: from USD 60 to USD 120.
• First class passengers: from USD 90 to USD 240.
• Passengers on private jets: from USD 120 to USD 480.

These increases, particularly for first-class passengers and those flying privately, could make luxury travel to and from the Maldives more costly. CNN Travel discusses similar travel tax trends in other high-end destinations, noting the possible effects on tourism.

How the 2025 Tax Hikes Will Affect Tourists

The TGST applies to many services that tourists use, such as accommodations, food, and activities. With the rate increasing from 16% to 17%, travelers will feel the extra costs. Even a 1% rise adds up (but note that from 2022 to 2024 the TGST has already been rised from 6% to 12% to 16%), especially for families staying for several nights.
This mirrors trends seen in other tourist-heavy regions, such as Hawaii, which has implemented similar tax increases.

For tourists staying at resorts or larger establishments, the Green Tax will rise significantly, from USD 6 to USD 12 per night per person. A family of four staying for one week will experience a substantial increase in costs:

• Before:
  USD 6 per night x 4 people x 7 nights = USD 168
• After:
  USD 12 per night x 4 people x 7 nights = USD 336

This extra USD 168 just for the Green Tax, combined with the TGST increase and higher departure taxes, could make a trip to the Maldives considerably more expensive for families. For more budget-friendly travel options, families may look into alternative destinations which offer lower taxes and competitive pricing.

Will Higher Costs Push Tourists Toward Other Destinations?

The Maldives’ position as a luxury destination has always attracted high-end travelers, but the increase in taxes could shift attention to more affordable alternatives. Destinations like Thailand and Bali already offer comparable tropical experiences at a lower overall cost, which could be more attractive to mid-range tourists and families facing tighter budgets due to these new taxes. This mirrors trends seen across Southeast Asia, where affordable luxury destinations thrive.

How Resorts and Tourism Operators May Adapt

With rising costs, resorts and tourism operators in the Maldives will need to adjust their pricing strategies to stay competitive. Some may opt to increase rates for accommodations and services, passing the extra costs directly onto customers. Others may offer all-inclusive packages that provide more transparency in pricing, making it easier for travelers to understand the total cost of their stay.

To attract price-conscious travelers, resorts may offer seasonal discounts or promotions. Additionally, resorts may push the Maldivian government for greater transparency about how the Green Tax revenue is spent. Tourists, especially eco-conscious ones, will want to know that their money is going toward real sustainability efforts, such as protecting coral reefs and improving waste management systems. For more insights into sustainable tourism practices, check out the Sustainable Travel International site.

Green Tax: Will It Truly Support Sustainability?

The Green Tax was introduced to support sustainability efforts, but with the proposed 2025 increase, many travelers will be looking for clear evidence that their contributions are making a difference. Projects aimed at reef restoration, waste management, and marine conservation are critical to maintaining the Maldives’ reputation as a sustainable destination.

However, with the tax doubling for both resorts and guesthouses, there are concerns about whether this additional revenue will truly go toward environmental projects or if it will be used to address other financial needs. Without transparency and clear reporting, tourists may question the purpose of the tax, especially as climate change and rising sea levels continue to threaten the islands. For more on these environmental concerns, see this article on climate change impacts on small island nations on National Geographic.

Conclusion: How Will the 2025 Tax Hikes Reshape Tourism in the Maldives?

The Maldives 2025 tax hikes, particularly the increase in TGST from 16% to 17% and the doubling of the Green Tax for resorts from USD 6 to USD 12, are expected to raise the cost of visiting this iconic destination. For families in particular, the increased costs could push them to look at alternative, more affordable tropical locations.

At the same time, the Maldives must ensure that the Green Tax revenue is used effectively to fund sustainability initiatives. Tourists will be more accepting of the higher costs if they see that their contributions are protecting the Maldives’ unique environment and supporting critical environmental projects.

For the Maldives to maintain its position as a top luxury destination, the balance between rising costs and environmental stewardship will be essential to retaining its appeal to travelers.

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