ATOR warns Maldives of falling tourist traffic due to new taxes

The Association of Tour Operators of Russia (ATOR) has asked the Maldives government to exclude Russian companies from the new tax rules. From October 1, 2026, the Maldives introduces a new tax on tourist services, which will oblige foreign tour operators, including Russian ones, to register with the local tax service and pay a 17% TGST (Tourism Goods and Services Tax).

Such measures will lead to virtually double taxation, ATOR believes. This, according to the association, will reduce the flow of tourists from Russia to the Maldives.

“ATOR considers such a design unacceptable. Russian companies purchase Maldivian hotel services at a cost that already includes local taxes, and the tour operator’s margin is formed in Russia, the association’s press service said in a statement.

ATOR also emphasizes that providing Maldivian tax authorities with access to financial documents of Russian companies is impossible due to their regulation exclusively by Russian legislation.

ATOR sent an official appeal to the Ministry of Tourism and Aviation of the Republic of Maldives and informed the Ministry of Economic Development of Russia about these risks.

Male expects that the changes in the tax legislation will annually bring additional revenues to the state in the amount of about 1.61 billion Maldivian rufiy (more than $104 million). Of these, about 299.3 million Maldivian Rufi (over $19 million) are expected to come from foreign travel agents, another 1.31 billion (almost $85 million) from foreign tour operators.

Last summer, the Maldives raised the TGST rate from 16 to 17 percent.

RBC sent a request to the Maldives government.