Tourism Minister Ibrahim Faisal has emphasized the importance of reducing tourism taxes and land rent in remote atolls to promote tourism development in these less-traveled areas.

Speaking at Parliament on Wednesday, the Minister outlined ongoing efforts to achieve these reductions.

Minister Faisal noted that the majority of tourism activity in the Maldives is concentrated in the Kaafu, Raa, Baa, Vaavu, Alifu Dhaalu, and Alifu Alifu atolls, where foreign investors frequently express interest.

In response to this disparity, he stated, 

He stressed that lowering acquisition costs for these locations, along with reductions in land rent and other tax incentives, is essential.

The Minister emphasized that without these changes, introducing tourism to currently undeveloped atolls would be challenging.

Faisal further mentioned that the Ministry would submit the necessary amendments to Parliament to enforce these adjustments, which will be processed through Attorney General Ahmed Usham upon completion.

The Minister's comments come in light of the government’s recent decision to increase several tourism-related taxes, including the Tourism Goods and Services Tax (TGST), Green Tax, and Airport Development Fee.

The TGST will rise from 16% to 17%, while the Green Tax will double from 3% to 6% for guesthouses and from 6% to 12% for resorts and city hotels.

Additionally, the Airport Development Fee will see significant increases: from USD 30 to USD 50 for foreign economy class passengers, from USD 90 to USD 120 for both local and foreign business class passengers, and from USD 90 to USD 240 for first-class travelers.

Passengers departing on private jets will see their fees increase from USD 120 to USD 480.

Finance Ministry estimates approximately MVR 3 billion in revenue with these changes.