Starting 1 October, overseas travel businesses selling or facilitating the sale of Maldives tourism products may be required to register for and pay the Goods and Services Tax (GST) in the country.

The Advantage Travel Partnership said the new tax rules could have "a significant impact" on agents and operators, while The Travel Network Group (TTNG) questioned whether businesses that "sell only a small number of Maldives holidays each year" could make the destination commercially unviable.

"The Maldives has long benefited from the support of the UK travel trade, but some businesses may now begin weighing up whether it is easier to focus their efforts on alternative destinations such as Mauritius, the Seychelles, Zanzibar or the Caribbean," said Travel Network Group Chief Executive Gary Lewis.

He added, stressing: "That would not reflect any reduction in the appeal of the Maldives. Rather, it would be a consequence of the additional complexity and cost involved in selling it." Both Advantage and TTNG called for time for their members to understand the changes.

Advantage Chief Executive Julia Lo Bue-Said, who is also Founder of the UK Outbound Travel lobby group, said: “We are deeply concerned about the aggressive new tax rules announced by the Maldives government.

"We have been liaising closely with colleagues across the UK Outbound Travel Group and join the wider industry in calling for the implementation of these measures to be delayed while the Maldives government provides greater clarity on how the new rules will work in practice."

Lewis added: "We are urging the Maldives authorities to work closely with overseas trade partners and consider a transition period that gives businesses adequate time to familiarise themselves with the registration and compliance requirements before enforcement begins."

Lo Bue-Said noted how an international tourism industry meeting with the country's government failed to provide the clarity the sector's bodies are seeking. TTNG said it was currently working with specialist tax advisers to understand the implications of the new regime.

Until the mechanics are understood, uncertainty around the new policy will cause businesses "significant anxiety" when selling and promoting the Maldives, Lo Bue-Said argued. She added: “As the Maldives’ third-largest source market, the UK is a vital contributor to its tourism economy.

"Penalising British businesses risks biting the hand that feeds them. With Russia and China currently their two largest source markets, it would be interesting to see whether the same approach would be taken with them. The strength and value of the UK market should not be underestimated.”