The Maldives' Tourism Goods and Services Tax (TGST) Increases to 16% from 12%, effective January 1, 2023. That means for those who have an upcoming stay at Cheval Blanc Randheli, Velaa, the Four Seasons at Landaa Giraavaru, or other Maldivian luxury resorts, now is a good time to prepay the stay to lock in the current 12% tax, which applies to both the villa rate and the usual 10% service charge, before the tax increases on 1/1/23.
The tax increase was approved by the parliament and ratified by President Ibrahim Mohamed Solih on November 22, 2022, even though the move was opposed by hotels and the hospitality industry. The move is expected to raise USD $195 million.
While 4% doesn't sound like much, on a $20,000 stay it amounts to $800, which even with high prices (virtually all food in the Maldives is imported) should buy an excellent dinner for two, a dive excursion, or indulgent spa experience.
As always, we recommend paying with a card that includes travel insurance, such the Chase Sapphire Reserve, Sapphire Preferred, or Ink Business Preferred, or purchasing travel insurance, to protect you against prepaid non-refundable trip costs.
We're heading into the best season weather-wise to visit the Maldives, January-April, so get ahead of the tax increase and look forward to one of our favorite warm weather luxury destinations in the world. Unable to get away? Take a mini virtual vacation with our Velaa video review:
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