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The Maldives has hiked its departure tax for the maintenance of its primary tourist hub amid a slew of economic challenges.
The archipelago nation of Maldives is already one of the world’s most expensive tourist destinations. Now it will become more expensive to leave the country as the government is set to hike exit fees as much as four times from December 1.
The departure tax in Maldives is broken down per passenger based on the class of service they are using to fly out of the country, CNN reported. Passengers in economy class will pay $50, up from $30, while fees for those travelling in business class have been doubled from $60 to $120.
- Economy Class: $50 (from $30)
- Business Class: $120 (from $60)
- First-Class: $240 (from $90)
- Private Jet: $480 (from $120)
First-class travel exit fees have been boosted from $90 to $240 and private jet travellers will have to pay $480 per person, from $120. This tax will be applicable for all non-Maldivian visitors regardless of age or passport, and it also doesn’t take the length or duration of the flight into account, which means a tourist will have to pay the same whether they are travelling from Delhi or London.
The Maldivian Inland Revenue Authority (MIRA) announced the tax increases in November to generate revenue towards the maintenance of the Velana International Airport, the country’s primary transit hub.
Will This Impact Tourism In Maldives?
According to CNN, some tourists may not even notice the new charges. These fees are added to the price of airline tickets, so travellers won’t have to pay upfront when they go through passport control.
Moreover, Beond, a startup all-business-class airline that flies to the Maldives, has advised customers to buy their tickets before November 30 to avoid the new departure tax. The fee hike comes as the Maldives, which is most reliant on tourism, has struggled to balance the money with the needs of its population.
Maldives is also facing a number of economic challenges. The International Monetary Fund said the country is at a high risk of external and overall debt distress. Former President Abdulla Yameen had previously borrowed heavily from China for construction projects, adding to the burden. Current Maldives President Mohamed Muizzu also said he would be unable to launch any new projects due to high debt.
The Maldives is a lucrative destination for high-end hotel and resort brands The Ritz Carlton, Six Senses, and St Regis are among the international hotel chains present there, with many rooms and villas costing thousands of dollars per night. On the other hand, the average Maldivian earns about $12,000 a year, as per the US State Department.