Starting Thursday (1 October), the Maldives is extending its Goods and Services Tax (GST) to foreign businesses selling inbound tourism products or providing booking or agency services.

This includes accommodation, meals, transport and other tourist activities, and could apply to agents, tour operators, OTAs, DMC, wholesalers and any other businesses or platforms selling Maldivian travel and tourism products.

Abta and travel's major consortia have been lobbying for time to process the proposed changes, which Abta said was "introduced without any consultation with international travel businesses".

Last month, the Advantage Travel Partnership said the new rules could have a "significant impact" on agents and operators, while The Travel Network Group said it was concerned selling the Maldives could become commercially unviable for businesses that sell the destination infrequently.

The Maldivian Inland Revenue Authority on Thursday said: "Pursuant to the 8th Amendment to the GST Act, GST will apply to inbound tourism products supplied by overseas suppliers from today. Businesses are encouraged to ensure compliance with the new requirements."

It comes after Abta last week wrote directly to the President of the Maldives calling for implementation to be postponed for "at least six months" to allow for full consultation.

Susan Deer, Abta's Director of Industry Relations, this week said: "While we have received acknowledgement from within the Maldives authorities to our earlier letters, we are disappointed not to have received a full response to the issues raised, including our recommendation to officially postpone implementation and enforcement."

Deer added: "We’re still doing a lot of work behind the scenes, which includes working with other international travel trade associations, but the lack of clarity and tight deadline makes this very challenging for members."

Julia Lo Bue-Said, Chief Executive of the Advantage Travel Partnership, said: "We are continuing our efforts on the issues relating to the Maldives but have nothing new to report at this time.

"We remain disappointed and dissatisfied with the Maldives government's approach, and we stand together as an industry to keep its newly announced tax rules firmly on the agenda."