by Lacey Pfalz
Last updated: 8:35 AM ET, Tue October 13, 2026
The Maldives announced it has suspended a controversial 17% tax on foreign tour operators, travel agencies and overseas booking platforms until April 1.
According to sister publication Travel Weekly, the popular luxury travel destination, which just welcomed its millionth annual visitor for the first time back in June, would have begun taxing tourism products and booking services that aren’t located in the Maldives beginning October 1, with overseas travel sellers required to register with the government’s Inland Revenue Authority.
That plan sparked controversy and confusion as travel agencies wondered whether they would be affected by the 17% tax, with tour operators calling for a delay or withdrawal of the measure, citing the additional cost that could be passed on to travelers.
Susan Deer, the director of industry relations for The Association of British Travel Agents, said, “Until there is official confirmation and proper engagement between the government and industry, the situation remains difficult for members.”
According to the Maldivian government, the tax could generate around US$104 million in revenue.
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