Maldives Sees Significant Rise in Green Tax Revenue from Guest Houses

The Maldives Inland Revenue Authority (MIRA) has reported a significant increase in green tax revenue from guest houses for the year 2023, highlighting the growing contributions from these establishments to the nation's environmental initiatives.
According to MIRA's annual report for 2023, the green tax collected from guest houses amounted to USD 408,650, representing a 66.1% increase from the USD 246,433 collected in 2022. Guest houses now contribute 4% of the total green tax revenue, reflecting their expanding role in supporting the Maldives' sustainability efforts.
The green tax, which is levied on tourists to fund eco-friendly projects, is collected from various types of accommodation, including resorts, guest houses, hotels, and safaris. The increase in green tax revenue from guest houses is indicative of the sector's growth and its potential to significantly impact the country's environmental conservation programs.
Since January 1, 2023, the green tax rates have been adjusted to better reflect the accommodation types and their capacities. Hotels and guest houses located in residential areas and having more than 50 rooms are charged USD 6 per day. In contrast, those with 50 rooms or fewer pay a green tax of USD 3 per day. These adjustments have helped streamline the tax collection process and ensure that larger establishments contribute proportionately more to environmental initiatives.
Despite the impressive increase from guest houses, the bulk of the green tax revenue still comes from resorts. In 2023, resorts generated USD 3 million, accounting for 91.5% of the total green tax revenue. This substantial contribution underscores the significant role that resorts play in the Maldives' tourism and environmental sectors.
MIRA's report underscores the importance of the green tax in funding critical environmental projects aimed at preserving the Maldives' natural beauty and biodiversity. The steady increase in green tax revenue is a positive indicator of the tourism sector's recovery and growth post-pandemic, as well as the increasing awareness and participation of smaller accommodation providers in sustainable practices.
As the Maldives continues to attract tourists from around the globe, the government's focus on green initiatives ensures that the impact of tourism on the environment is managed responsibly. The rising contributions from guest houses are a testament to the collective effort required to maintain the ecological balance while promoting economic growth.
The Maldives' commitment to sustainability is further highlighted by the ongoing efforts to enhance green tax policies and ensure that all stakeholders in the tourism industry contribute to the nation's environmental goals. The significant rise in green tax revenue from guest houses is a step in the right direction, paving the way for more comprehensive and inclusive environmental conservation strategies.
In conclusion, the substantial increase in green tax revenue from guest houses in 2023 reflects the growing role of smaller accommodation providers in supporting the Maldives' environmental initiatives. This trend is expected to continue as the government and industry stakeholders work together to promote sustainable tourism practices across the archipelago.