Indian travel consultants are preparing for higher costs on Maldives packages after the government extended its 17 per cent Tourism GST to overseas sellers. The move has led agents to review their pricing structures, with warnings that even a moderate increase could pressure demand in the price-sensitive mid-market and family segments.
The Outbound Tour Operators Association of India has urged the Maldivian government to withdraw the levy. Industry executives note that the full 17 per cent may not be passed directly to customers, as the impact depends on package structure, resort rates, and agent margins. Some agents booking resorts directly could face the Maldives Tourism GST on their earnings while also being liable for 18 per cent GST in India, raising concerns about double taxation.
Travel agents say they cannot absorb the additional cost, and price-conscious travellers may look at alternative destinations such as Bali, Vietnam, Sri Lanka, and Thailand. However, some agents plan to review each package individually, using promotional resort rates and negotiated deals to offset part of the increase. Others suggest that Indian travellers may still choose the Maldives if resorts offer discounts or added benefits like complimentary spa treatments or transfers.
For travellers, this could mean slightly higher prices on some Maldives packages, but the actual increase will vary. The key factor will be whether travellers feel they are getting value for the total amount they pay, as agents work to keep final prices competitive.
