Matato Seeks Talks With Ministry Over Airport Tax Hike

The Maldives Association of Travel Agents and Tour Operators (MATATO) has called on the Ministry of Transport to engage in discussions regarding the recent increase in airport taxes and development fees.

 In a letter addressed to Transport Minister Mohammed Amin, MATATO highlighted concerns raised by two airlines, which have expressed unease about the tax hikes.

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MATATO emphasised that budget airlines play a crucial role in the country’s tourism industry, particularly for mid and low-end resorts and guesthouses. According to MATATO, these carriers account for 40 per cent of the passengers visiting guesthouses, with the remaining 60 per cent travelling to medium and low-end resorts. 

The doubling of airport taxes and fees has already led some tourist airlines to suspend flights to the Maldives. MATATO warned that this could negatively affect guesthouses and mid-range resorts, ultimately impacting the broader tourism sector. 

The tax increases, which were passed by Parliament and signed into law by President Mohammed Muiz in early November, include hikes to the Green Tax, Tourism Goods and Services Tax (TGST), and airport fees. Starting from January, the Green Tax will rise from $6 to $12, with an increase in fees for smaller properties. Additionally, the TGST will increase from 16% to 17%, and airport taxes will see a general rise from December.

In its statement, MATATO urged the Ministry of Transport to come to the negotiating table to assess the potential long-term consequences of these hikes on the tourism industry. “While recognising the importance of infrastructure development and increasing revenue, it is equally important to consider the long-term impact on tourism,” MATATO stated.