Indian travel consultants are reassessing Maldives holiday packages following the government’s decision to extend its 17 per cent Tourism GST to overseas sellers from October 1, 2026. The move is expected to increase costs for some bookings, raising concerns about demand among price-conscious Indian families and mid-market travellers.
The Outbound Tour Operators Association of India (OTOAI) has urged the Maldivian government to withdraw the levy, while travel agents warn that the additional tax could put pressure on their margins and package competitiveness.
Industry representatives point out that the full 17 per cent increase may not necessarily be passed on to customers. The actual impact will depend on resort rates, package structures, negotiated deals and agent margins. Some operators are reviewing bookings individually, with promotional offers expected to offset part of the additional cost.
Another concern is the possibility of double taxation. Agents booking resorts directly may face the 17 per cent Tourism GST on their Maldives earnings, alongside India’s 18 per cent GST on the same income.
Travel consultants believe higher prices could encourage some Indian holidaymakers to consider alternatives such as Bali, Vietnam, Sri Lanka and Thailand. However, the Maldives is unlikely to lose its appeal entirely, particularly if resorts offer discounts, complimentary transfers, spa treatments and other added benefits. Ultimately, travellers will weigh the overall value of their holiday against the revised cost.
