Budget airline, Wizz Air, to halt operations to Maldives

Budget airline, Wizz Air, has decided to halt operations to the Maldives.

The airline decided to halt operations to the Maldives due to the hike in tourism-related taxes. Wizz Air’s last flight to the Maldives is scheduled for April 10^th.

Mohamed Firaq, the CEO of local tour operator Inner Maldives, has expressed concern about this, citing cease of operations by any airlines currently traveling to the Maldives would amount to huge loss. According to Firaq, the biggest obstruction presently faced by low-cost airlines such as Wizz Air, is the high tax rates in the Maldives.

He underscored that there were measures that can be implemented to ensure the continued operations of such low-cost airlines in spite of the tax hike.  Firaq also emphasized that Maldives Airports Company Limited (MACL)

“The reason behind the stoppage should be identified. What kind of schemes could support the continued operations should also be identified. There aren’t many targeted offers for low-cost [airlines] in the Maldives. The same policy for normal airlines applies to them as well,” he added.

Firaq, noting a couple of low-cost airlines operate to the Maldives, underscored the need to introduce specific discounts for them.

He detailed that the halt of operations by low-cost airlines would mostly impact guesthouses as these airlines are usually opted by budget travelers.

“Although some of the passengers go to resorts, most passengers from these airlines stay at guesthouses,” he said.

Referring to the impending peak season, Firaq warned of a possible dip in tourists traveling to resorts as well if there are no stable airlines in operation to the Maldives.

The government raised the Airport Development Fee (ADF) and Departure Tax on December 1, 2024.

This saw ADF and Departure Tax raised from USD 30 to USD 50 for foreign ‘Economy Class’ passengers, from USD 90 to USD 120 for both local and foreign ‘Business Class’ passengers, from USD 90 to USD 240 for ‘First Class’ passengers, and from USD 120 to USD 480 for passengers who travel in private jets.

The government has also doubled Green Tax from USD 3 to USD 6 for guesthouses and from USD 6 to USD 12 for resorts and city hotels. The change came into effect on January 1^st.

Meanwhile, Tourism Goods and Services Tax (TGST) will be raised from 16 percent to 17 percent starting from July 1^st.

Maldives has welcomed nearly half a million tourists so far this year.