In Brief: ABTA has formally expressed serious concerns to the President of the Maldives regarding proposed increases to tourism taxes, warning that such measures could negatively affect visitor demand and the competitiveness of Maldivian hotels and resorts in the global travel market.
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ABTA Writes to Maldives President Expressing Serious Concerns over Proposed Tourism Tax – Image Credit ABTA
ABTA has written to the Maldives President asking for official confirmation that any enforcement of an amendment to the Goods and Services tax will be postponed for at least six months, to allow for a full consultation with the international travel industry.
ABTA has also asked for confirmation that overseas travel agents, acting as a disclosed agent on behalf of an overseas tour operator will not be required to register and be exempt from the tax.
ABTA has reiterated a request for a meeting with industry association representatives from ABTA, ECTAA and WTAAA to discuss fundamental issues with the legislation which, it believes, makes the tax unworkable in certain scenarios.
Susan Deer, ABTA Director of Industry Relations said:
“We understand that legislation to amend the Maldives Goods and Services Tax Act had been under consideration for some time, but it was introduced without any consultation with international travel businesses. This failure to consult has resulted in legislation and guidance which is not fit for purpose.
“We have written to the Maldives Tourism minister on two separate occasions, which is why we are now escalating our concerns direct to the President of the Maldives.”
Erik Drésin, Secretary General of ECTAA, added:
“European travel agents and tour operators have been long-standing partners in building the Maldives into a world-leading destination.
“However, extending domestic tax obligations extraterritorially with virtually no consultation or lead time severely disrupts established commercial operations.
“A suspension of enforcement and immediate, constructive dialogue are essential to ensure the rules are workable, legally robust, and fair to all partners involved.”
ABTA is a trade association for UK travel agents, tour operators and the wider travel industry.