MATATO begins survey to identify impacts of new TGST regulations

Maldives Association of Travel Agents and Tour Operators (MATATO) has launched the ‘TGST Destination Principal Impact Survey’ to evaluate the commercial and operational impacts of new tax regulations scheduled to come into effect next month affecting overseas sellers of Maldives tourism products.

The changes relate to tourism products, associated bookings, and agency services entering the Maldives, in line with directives issued by the Maldives Inland Revenue Authority (MIRA).

MATATO has invited participation in the survey from local and international travel agents, tour operators, resorts, hotels, guesthouses, Online Travel Agencies (OTAs), bed banks, airlines, and other stakeholders operating within the tourism industry.

According to MATATO, the main purpose of the survey is to assess the effects of the new regulations on pricing structures, existing agreements, bookings, profit margins, compliance expenses, and the overall competitiveness of the Maldives as a tourism destination.

The survey will also seek to estimate potential annual revenue losses and determine whether businesses have been provided adequate time to prepare for the upcoming regulatory changes.

MATATO stated that the initiative forms part of its evidence-based advocacy efforts, building on previous industry surveys and stakeholder consultations carried out by the association.

The findings gathered through the survey will be used to develop formal recommendations for the government and industry stakeholders, proposing practical solutions to address challenges and support the tourism sector.

MATATO highlighted the importance of assessing the impact of the changes throughout the entire tourism supply chain and ensuring that concerns raised by both Maldivian businesses and international partners are reflected in discussions concerning the future of the destination.

The association has therefore urged all tourism stakeholders to complete the survey at the earliest opportunity. MATATO also clarified that providing contact details when participating in the survey is optional.

Meanwhile, several associations representing European tour operators and travel agents called on the Maldivian government and MIRA on Tuesday to postpone the implementation of the GST Act amendment, which requires tax collection from foreign travel agents from next month.

The bill proposing the eighth amendment to the GST Act was ratified by the President Dr. Mohamed Muizzu on August 31^st.

Concerns over the financial and administrative burdens associated with the amendment were raised by 'Les Entreprises du Voyage' (EDV), which represents French travel agencies and tour operators; the trade union 'Syndicat des Entreprises du Tour Operating' (SETO); and 'ASTOI Confindustria Viaggi,' representing Italian tour operators.

In a letter addressed to the President and the Tourism, signed by ASTOI President Pier Ezhaya, the association highlighted that the Italian market, which contributes 153,000 tourist arrivals to the Maldives annually, remains a significant source market for the country’s tourism industry.

The letter further noted that while the Maldives has the sovereign authority to establish its fiscal policies, the timeline provided for implementing the amendment is inadequate and impractical.