Green Tax Revenue Hits USD 68 Million Amid Shifting Tourist Trends

The Maldives has collected USD 68.11 million in green tax revenue during the first five months of this year, marking a 10 percent increase over the USD 62.19 million recorded during the same period last year, according to the Maldives Inland Revenue Authority (MIRA). Despite the overall growth, May saw a significant downturn. Collections dropped 32 percent to USD 8.95 million, down from USD 13.23 million in May of the previous year. Officials attributed this sharp decline to a decrease in tourist arrivals, specifically linking the trend to regional unrest in Western Asia. The May contraction followed a period of strong performance in the first quarter. Revenue started the year at USD 14.38 million in January and USD 12.99 million in February, before hitting a peak of USD 20.26 million in March. Collections then began to soften, falling to USD 12.01 million in April before the low in May. Introduced in October 2016, the green tax is a critical funding mechanism for the Maldives' environmental preservation. The tax is levied daily on tourists staying in various accommodations, with the exception of children under two. Visitors staying at resorts, hotels, and liveaboard vessels are charged USD 12 per day, while those opting for local guesthouses pay USD 6. These funds are earmarked for essential infrastructure and ecological projects across the islands. The government utilizes the revenue to finance water and sewerage developments, coastal protection measures, and various clean environment initiatives aimed at safeguarding the archipelago's fragile ecosystem.