Maldives Collects USD 164 Million in Airport Fees and Taxes by August

The Maldives government collected USD 164.72 million in airport taxes and fees by August 27, marking a steady increase in revenue compared to the same period last year. The data, released in the latest 'Weekly Fiscal Development' report by the Ministry of Finance and Public Enterprises, highlights a growth trend in the nation's aviation-linked income. Departure tax receipts accounted for USD 81.06 million of the total, reflecting a 7.7 percent rise from the USD 75.23 million recorded during the corresponding timeframe last year. This levy, which was implemented on January 1, 2022, applies to most travelers, with exemptions granted to children under two, transit passengers, and individuals holding diplomatic immunity. Simultaneously, the airport development fee—levied on passengers departing Velana International Airport since May 2017—generated USD 83.01 million. This represents an 8.4 percent increase over the USD 76.52 million collected previously. Combined, the departure tax and development fee yielded an overall increase of 8.5 percent over the USD 151.75 million gathered last year. While the departure tax serves general state revenue, the proceeds from the airport development fee are directed into the Sovereign Development Fund. This strategic move is designed to reinforce long-term national reserves and ensure future financial stability. The fund is further bolstered by dividend payments from the Maldives Airport Company Limited (MACL), the state-owned operator of Velana International Airport, as well as revenues from periodic increases in specific airport service fees. Exemptions for the airport development fee remain strict, limited only to direct transit passengers and those with diplomatic status. The continued growth in these figures underscores the increasing volume of travelers visiting the archipelago and the state's ability to leverage its primary gateway for national development.