Tourism Goods and Services Tax collections are lower than a year ago, and tourist arrivals are down, according to the Finance Ministry's fiscal report and Tourism Ministry data.
TGST collections stood at MVR 8,061 million by the end of September, about MVR 110 million below the same period last year. Arrivals as of 6 October were 1,637,890, which is 58,940 fewer than at the same point in 2025.
The 2026 budget assumes 2.4 million arrivals and TGST revenue of MVR 11.4 billion. Reaching the arrivals target would need about 800,000 visitors in the last three months, against a monthly record of 254,556 set in February.
Arrivals were at record levels in the first quarter, but growth slowed from the second quarter after the conflict involving Iran disrupted flights through the UAE and Qatar. Services have resumed, but the expected recovery has not come. Green Tax, airport departure tax and other non-tax revenues are also affected, and the projected MVR 40.3 billion in total government revenue for the year may not be met.
