THE DETAIL is very simple.
Nasheed’s Government concealed information from the pubic for over two years about the impending ADC that GMR was permitted to levy on departing passengers since the contract was signed on 24th July 2010.
I wonder how many of us know that all departing passengers from Maldives are already taxed. Here’s what we pay now.
a.Every Maldivian Passenger pays an Airport Service Charge of US$12.00 and in addition he pays an Insurance Surcharge of US$2.00 a total of US$ 14.00
b.The Airport Service Charge for Foreigners is a bit higher, its US$ 16.00 coupled with the Insurance Surcharge of US$ 2.00 a total of US$ 18.00.
This Tax is collected by the Airlines that sell the outward journey from Male. The absolute mess-up of the economy and the rise of the US Dollar from 12.85 to 15.42 with the introduction of the “floating exchange rate band” the US Dollar is now available in the Black Market for Rf 17.50. Effectively, the actual Airport Service Charge for the locals translates to Rf. 245.00 per passenger.
GMR in their quest for more money is planning to levy an additional Airport Service Charge of US$25.00, rebranded as “Airport Development Charge”, this bring the toll for Locals to US$ 39.00 (Rf. 682.50) and for foreigners to a staggering US$ 43.00
What does this mean? The GMR has the airport until 2032. To see into the future and the kind of money this government has allowed the GMR to make from Maldives for only the cosmetic changes that has been implemented thus far, we developed a trend forecast of only the income of $ 43.00 based on actual data published by the Ministry of Tourism actuals from 2005 to 2010.
The Total revenue from Tourist Arrivals/Departures only that GMR will collect during their contract period is forecasted at US$ 805,319,550.00. (Rf. 12,418,027,461.00)
International Passenger traffic forecast published by GMR indicate a total passenger movement increase from 1,000,000 in 2005 to an amazing 2,000,000 in 2010 with a phenomenal growth projected at 2,750,000 in 2015. These figures projected to year 2032 shows a staggering 5,416,666 passengers using the Ibrahim Nasir International Airport only that year. The total revenue that would be generated from figures forecasted by GMR totals to a figure US$ 881,562,500.00 Rf. (13,593,693,750.00) by the year 2030.
Airport Development Charges and Taxes are not an alien concept in the Aviation industry. However, such taxes are levied to fund ongoing development projects or part cost of facility development costs. The Service Charges are usually levied as a recurring charge, the proceeds of which go for the maintenance of the Airport facilities. The Development charge has clear cut corners.
1. Airport Development Charge/Tax is levied to secure part or percentage of the cost of an ongoing Airport Development Project to be secured within a specified period for time.
2. It cannot be taxed for an indefinite period of time, like an Airport Service Charge.
This new ADC the GMR plans to introduce in 2012 is a blatant disregard for Principles of Airport Management and Good Practices.