Visitors to the Maldives will find they are being charged more their trip from 1 December, after authorities in the Indian Ocean destination upped the cost of airport exit fees.
What is the Departure Tax?
The island nation introduced its “Departure Tax” two years ago, in January 2022. It is applicable to all aircraft passengers, except those with diplomatic immunity, transit passengers and children below the age of 2 years old.
Applied per passenger, the charge is dependent on the service class flyers choose to travel in, rather than the length or duration of their journey. It is the responsibility of airlines to levy and collect the fee on behalf of the government for scheduled flights, and of airport operators to collect it for chartered flights and private jets.
Does everyone have to pay?
Passengers wishing to avoid the increase are already being advised to book travel to the Maldives quickly, before 1 December, in order to duck the price increase, which comes into force just in time for peak season from January to March. However the tax may well go unnoticed by many lucky travellers to the republic, as it is usually bundled into other costs associated with their trip.
Still, the increase is not insignificant. Passengers in economy class are now set to pay $50 (instead of the former $30); business class passengers will have to cough up $120 (a doubling from the previous $60); first class ticket holders will pay $240 (instead of $90) and private jet flyers will see a four-fold hike, taking their fee to $480 per person (up from $120). Only Maldivian passport holders travelling in economy class will not see an increase, paying just $12.
Why is a Departure Tax needed?
Though tourism is the nation’s biggest sector, “contributing close to 30% of GDP and generating more than 60% of foreign currency earnings” according to the US State Department, average yearly earnings for Maldivians sit at around $12,000 – the price of some of the country’s accommodation per night.
What’s more, Maldivians do not always see the benefits brought by their homeland’s worldwide reputation for luxury holidaymaking, since many of the country’s resorts are essentially private shoreline property developments dotted around the 1,190-island, 20-atoll land and seascape.
Announced on the 5 November 2024, the Maldives Inland Revenue Authority (MIRA) has explained that the increased Departure Tax will generate vital funding for the maintenance of Velana International, the Republic’s main airport.
