Economy.
Under the eighth amendment brought to the Maldives Goods and Services Tax Act, foreign tour operators and online booking platforms without a permanent business in the Maldives have been required to register with MIRA and pay 17 percent TGST effective from October 1, 2026. Housing Development Corporation (HDC) Managing Director Ali Zuhair announced on October 3, 2026, that work is currently underway to build over 3,100 apartments in Hulhumalé, including 1,763 semi-luxury and 1,400 luxury units, and that land has been allocated to carry out affordable housing projects in collaboration with the Bank of Maldives. In addition, HDC has been tasked with constructing 5,000 housing units in the atolls, with physical work on 400 housing units in HDh. Kulhudhuffushi already underway.
Amid significant concerns arising in the tourism industry over the government's policy to collect TGST from foreign tour operators and online booking platforms serving tourists visiting the Maldives, the government has begun work to amend the law. Following the start of tax collection from foreign agents, some popular European tour operators temporarily suspended bookings to the Maldives, and following complaints voiced by senior tourism industry figures, the government decided to review this decision. Therefore, in order to resolve the issue and minimize potential losses to the sector, work is currently underway to draft the necessary amendments to the relevant legislation and submit them to the People's Majlis.
To celebrate the 54th anniversary of the Maldivian tourism industry, special activities were carried out at a national level on Saturday, October 3, 2026. While it has been more than half a century since tourism began in the Maldives, senior tourism figures and stakeholders took part in marking this occasion. In connection with this day, those who worked to develop the tourism industry—the backbone of the Maldivian economy—were appreciated, and efforts to sustainably advance this industry were highlighted. Furthermore, the day's activities emphasized everyone working together in the future to maintain the Maldives as the world's most popular destination.
On October 3, 2026, the Housing Development Corporation (HDC) disclosed important information regarding its ongoing projects and the housing units developed and being developed in Hulhumalé. This information includes the progress of Hulhumalé's housing projects and the provision of important details needed by the public regarding these works. In addition, HDC's aim is to carry out Hulhumalé's housing projects in a sustainable manner and to provide the public with clear and updated information regarding housing matters.
On October 3, 2026, an important new proposal was submitted to reduce rent and general living costs. The main objective of this proposal is to ease the financial burden borne by the general public and to introduce new policies that will regulate and control household rents and other essential expenses. Furthermore, it was noted that these measures would improve the quality of life and provide an effective solution to economic hardships.
