International airlines operating in the Maldives are adjusting ticket prices upwards in response to the government’s recent airport tax hike.
Ace Aviation Service Maldives, the local representative of SriLankan Airlines, announced fare increases effective from 1 December. Passengers departing from Velana International Airport and Gan International Airport will see higher costs. Economy-class tickets for tourists leaving Gan International Airport will carry a USD 50 tax, while business-class tickets for both locals and tourists will incur a USD 120 tax.
Budget airlines operating routes between the Maldives and India have also raised ticket prices, reflecting the added costs.
The Maldivian government estimates that the revised taxes will generate an additional MVR 1.6 billion in revenue, bolstering the country’s finances. However, industry experts warn that the higher costs could make the Maldives less competitive as a travel destination, particularly in the price-sensitive tourism sector.
Critics argue that while the move may help address fiscal challenges, it risks dampening demand in a key industry that accounts for a significant portion of the nation’s economy. As airfares climb, the potential impact on visitor numbers remains a pressing concern for stakeholders in the tourism sector.
