An impressive 88 percent rise in Green Tax revenue has been recorded in the Maldives during the first 21 weeks of 2025, with collections amounting to over USD 63.3 million. The data, released by the Ministry of Finance and Planning, highlight a clear indicator of the country’s strengthening tourism sector, which remains a vital pillar of the national economy.
Between January 1 and June 12, 2025, Green Tax collections totaled USD 63,320,363.16, a substantial increase from the USD 33.58 million collected during the same period in 2024. The tax, which directly supports environmental protection and sustainable development initiatives, is levied on foreign tourists staying in various types of accommodation across the country, including resorts, hotels, guesthouses, and liveaboard vessels.
Under the current tax structure, visitors staying at resorts, hotels, and safari vessels are charged USD 12 per person per night, while those staying in guesthouses are taxed at USD 6 per person per night. Children under two years of age are exempt. The revenue generated is directly tied to the number of arrivals and the duration of stays, making Green Tax collections a key barometer of tourism sector performance. Tourism establishments are required to file monthly returns and remit the tax by the 28th of the following month.
The rise in tax collections closely corresponds with a steady growth in visitor arrivals. According to the Ministry of Tourism and Environment, the country welcomed 1,074,703 tourists by mid-June 2025, reflecting a 9.1 percent increase compared to the same period last year. This builds on the milestone achieved in 2024, when the Maldives recorded two million tourist arrivals, underscoring its position as a preferred destination for international travelers.
Encouraged by the positive trends in both fiscal returns and visitor numbers, the government has set an ambitious target of attracting 2.3 million tourists by the end of 2025. This objective aligns with ongoing national efforts to bolster tourism-driven economic growth while ensuring the sustainability of the country’s fragile island ecosystems.
Since its introduction in October 2016, the Green Tax has become a reliable fiscal instrument for funding environmental initiatives. The latest surge in collections not only reflects the rising popularity of the Maldives as a travel destination but also signals continued investor confidence in the sector’s resilience and long-term potential.
