New GST Rules Impact Cruise Ship Arrivals

The Maldives Association of Yacht Agents (MAYA) has announced a decline in the number of cruise ships visiting the Maldives, attributed to the tax regulation changes implemented in September.

The updated regulations impose a 16% Goods and Services Tax (GST) on the daily room rate for each passenger aboard cruise ships. This modification has greatly influenced the choices of cruise lines, leading many to choose different destinations.

A senior MAYA official emphasized the difficulty and weight of the new tax requirements, stating that every charter is now required to pay taxes, which is not a simple task.

The shift resulted in the cancellation of the MS Bolette, a Fred. Olsen Cruise Lines vessel that was supposed to dock in Maldives with 800 passengers. This cancellation, along with potential cancellations of other cruise ship visits, highlights the increasing hesitancy of operators to incorporate Maldives in their travel routes.

The official from MAYA stressed that if these regulations are not changed, Maldives stands to lose a large share of its cruise ship visitors. The method of taxing separate rooms instead of imposing a unified fee is especially controversial and may result in major industry leaders boycotting the destination.