Maldives Collects $133 Million in May Revenue as Tourism Slump Hits Targets

Maldives Collects $133 Million in May Revenue as Tourism Slump Hits Targets

Politics ·
The Maldives collected USD 132.99 million in total revenue during May, failing to meet official projections as tourism-linked income declined. According to data released by the Maldives Inland Revenue Authority (MIRA), this total—which includes USD 88.54 million in foreign currency—marks a 5.8 percent decrease compared to the same period last year. Officials attributed the shortfall primarily to a 19.5 percent drop in tourist arrivals, driven by geopolitical instability and conflict in Western Asia. This downturn directly impacted several key revenue streams, including Goods and Services Tax (GST), tourism land rent, and quota fees for migrant workers. While May projections had anticipated a slight 0.3 percent dip, the actual figures fell further behind, though totals were partially supported by lease extension fees that yielded no income in the previous year. To counter these constraints, MIRA implemented proactive enforcement measures to recover outstanding funds. These efforts reclaimed USD 24.78 million, with proactive campaigns securing 21.9 percent of the total revenue. Formal notices were the most effective tool, recovering USD 15.71 million, followed by USD 4.42 million from dues clearance and USD 3.83 million through structured installments. Late payments accounted for 13.8 percent of the month's total revenue. Tax collections remained the primary driver of state income. The Goods and Services Tax dominated the portfolio, generating USD 74.61 million and accounting for 56.3 percent of total revenue. Other significant contributors included income tax at USD 15.18 million and the airport development fee, which brought in USD 10.25 million. Departure taxes contributed USD 10.12 million, while the green tax generated USD 9.02 million, representing a 6.8 percent share of the total. Work permit fees provided a smaller contribution of USD 460,442, rounding out the month's fiscal performance as the state navigates the volatility of its tourism-dependent economy.