MATATO backs TGST framework review following tourism industry concerns
The Maldives Association of Travel Agents and Tour Operators (MATATO) has welcomed the government’s decision to review the implementation framework relating to the destination principle for Tourism Goods and Services Tax (TGST).
Minister of Tourism Mohamed Ameen confirmed that President Dr Mohamed Muizzu had decided to introduce changes to the framework following concerns raised by tourism stakeholders and travel agents over its implementation.
MATATO said it welcomed the government’s willingness to consider concerns raised by the tourism industry, describing consultation between the public and private sectors as important to maintaining the competitiveness of the Maldives as a destination.
The association has in recent weeks been engaging with local and international stakeholders while conducting an industry-wide impact survey to assess the commercial and operational implications of the changes.
“We see this as a positive and important step. Tourism has always succeeded when government and industry work together through consultation and dialogue,” MATATO Secretary General Abdulla Suood said.
“MATATO remains ready to support the Government in developing a balanced framework that protects state revenue while ensuring the Maldives remains competitive and easy to sell across our global markets.”
The destination principle and its application to tourism transactions have been a subject of concern among travel agents and other industry stakeholders, particularly over the potential implications for contracting, pricing and the sale of Maldives tourism products through international markets.
MATATO said it now expects further consultations to take place with the government, Maldives Inland Revenue Authority (MIRA), local tourism stakeholders and international travel partners as the proposed amendments to the framework are developed.
The association said it would continue contributing to the process with the aim of supporting a framework that addresses revenue considerations while taking into account the commercial and operational realities of the tourism sector.
