The Maldives has been one of the important destinations for Indian outbound travellers, with the Indian travel trade playing a significant role in building this market over the years.
OTOAI is concerned about the new 17% Tourism GST applicable from 1 October 2026 to overseas tour operators, travel agents and booking platforms. The additional tax and compliance requirements could increase the cost of Maldives holidays and place further pressure on an industry already facing geopolitical uncertainty, rising costs and challenging market conditions.
Many Maldives holidays are contracted and sold months in advance at agreed prices. Introducing an additional tax at this stage could create challenges for existing bookings, margins and consumer pricing.
Himanshu Patil, President, OTOAI, said:
“We fully understand the importance of tourism revenues for the Maldives. However, at a time when the global travel industry is facing significant challenges, we believe an additional 17% tax on overseas travel trade could unintentionally make the Maldives less competitive.
“We therefore sincerely request the Maldives Government to reconsider and withdraw this provision. India and the Maldives share a strong tourism relationship, and we would like to see this partnership grow further without adding additional pressure on travellers or the international travel trade.
“We urge the Maldives Government to work closely with international travel trade associations, including OTOAI, as well as leading Maldivian industry bodies such as the MATATO and MATI . A collaborative approach can help find a practical solution that supports tourism growth while keeping the Maldives competitive.
“We remain committed to working together with the Maldives Government and the Maldivian tourism industry to strengthen the long-standing partnership between our two countries.”
