The Maldives generated USD 68.11 million in Green Tax revenue during the first five months of 2026, reflecting a 10 percent increase compared to the USD 62.19 million collected during the same period last year, according to the latest figures released by the Maldives Inland Revenue Authority (MIRA).
The increase comes despite a significant slowdown in May, when Green Tax collections fell by 32 percent to USD 8.95 million, compared to USD 13.23 million recorded in May 2025. Authorities attributed the decline largely to a reduction in tourist arrivals linked to geopolitical tensions and unrest in parts of the Middle East and Western Asia, which affected travel demand across several destinations, including the Maldives.
Green Tax revenue recorded strong performance during the early months of the year, beginning with USD 14.39 million in January and USD 12.99 million in February before peaking at USD 20.26 million in March. Collections then eased to USD 12.02 million in April and further declined to USD 8.99 million in May.
Introduced in October 2016, the Green Tax is imposed on tourists staying in accommodation facilities across the Maldives and is used to fund environmental protection and sustainability initiatives. Guests at resorts, hotels and liveaboards pay USD 12 per day, while those staying in guesthouses are charged USD 6. The revenue supports major projects including coastal protection, water and sewerage systems, environmental conservation programmes and clean island initiatives.
Despite recent challenges, the tourism industry continued to record growth during the first quarter of 2026, according to the Maldives Monetary Authority's Quarterly Business Survey. The survey found that tourism businesses experienced continued expansion, although at a slower pace than in previous quarters.
The index measuring total tourism revenue declined by 40 points but remained positive at 60 points, indicating that businesses continued to earn higher revenues compared to the previous quarter. Resort bookings also remained in growth territory, with the bookings index standing at 56 points despite a 34-point decline.
Employment across the sector continued to increase, with the employment index remaining positive at 20 points. Businesses also reported higher wage and labour-related costs, while input prices and average room rates stayed elevated despite moderating from previous levels.
The MMA noted that ongoing geopolitical conflicts in the Middle East had weighed on global travel demand and affected tourism destinations worldwide. However, the survey indicated that the Maldivian tourism industry is gradually returning to more normal operating conditions and remains on a recovery path.
Latest figures from the Ministry of Tourism and Civil Aviation show that tourist arrivals reached 981,976 as of 10 June. While this represents a 5 percent decline compared to the same period last year, arrivals were still 4 percent higher than those recorded during the corresponding period in 2024, highlighting the sector's underlying resilience.
China continues to be the Maldives' largest tourism source market in 2026, contributing more than 150,000 visitors so far this year.
Industry observers note that continued investment in tourism infrastructure, the opening of new resorts, and the sector's ability to withstand external shocks are helping sustain economic activity, with Green Tax revenue growth providing further evidence of the industry's enduring contribution to the national economy.
