Tourism in the Maldives has come a long way since its inception in 1972. Celebrating over five decades of drawing travellers with its scenic beauty and luxurious resorts, the Maldives continues to be a top destination for both high-end and budget travellers. This article delves into the current state of tourist arrivals and the operational tourist facilities across the archipelago.
Historical Context and Tourism Development
The Maldives’ journey as a tourism hub began in the early 1970s. Initially, tourism was restricted to a few uninhabited islands developed as resorts. For nearly three decades, only a select few companies had the rights to lease these islands, creating a significant disparity in wealth and limiting the government’s resources to provide public services. However, a policy shift in 2009 allowed for the establishment of hotels and guesthouses on inhabited islands, broadening the scope for local businesses to benefit from the booming tourism industry.
Luxurious Resorts and Expanding Guesthouses
Maldivian resorts are synonymous with luxury, featuring iconic water villas, personal butler services, and world-class amenities such as award-winning spas and internationally acclaimed restaurants. These resorts, often situated on private islands, cater to both families and honeymooners, offering unparalleled privacy and breathtaking views.
In contrast, the guesthouse industry has flourished following the relaxation of tourism restrictions. Guesthouses, now a staple in inhabited islands, provide a more affordable alternative to the lavish resorts while still offering access to activities like snorkelling, diving, and watersports. This diversification has allowed tourists to experience the rich local culture and hospitality firsthand.
Current Operational Tourist Facilities
As of July 23, 2024, the Maldives boasts 1,207 operational tourist facilities. These include 152 safari vessels, 867 guesthouses, 14 hotels, and 182 resorts, though eight resorts have yet to resume operations. These facilities offer a total of 62,481 tourist beds distributed as follows:
Resorts: 42,955 beds
Guesthouses: 14,615 beds
Hotels: 1,956 beds
Live-aboard vessels: 2,955 beds
The distribution of these facilities across various atolls highlights the central region’s advantage due to its proximity to Velana International Airport (VIA). This centralization has led to slower development in the northern and southern regions, exacerbated by expensive domestic air travel.
Breakdown of Tourist Arrivals
Tourist arrivals have seen a steady increase, with 1,142,222 visitors recorded by July 24, 2024. This marks a 9.7 percent increase compared to the same period last year. The daily average for 2024 is 5,545 tourists, with an average stay of eight days. Notably, February saw the highest number of arrivals, with over 10,000 tourists recorded on February 10.
Leading Source Markets
China currently tops the list of tourist source markets, contributing 13 percent of the market share with 148,839 arrivals. Russia follows with 121,125 arrivals, and the United Kingdom ranks third with 101,787 arrivals. Other significant markets include Italy, Germany, India, the United States, France, Switzerland, and Spain.
Homestay and Split Stay Options
A recent amendment to the guesthouse regulations now allows for homestay tourist guesthouses in residential units. Published in the gazette on December 30th, 2021, as the 4th Amendment to the Tourist Guesthouse Regulation (2021 / R-176), these homestay tourism guidelines enable tourists to share a home with the locals at their travel destination. This initiative has provided new opportunities for local small businesses to benefit from tourism. Additionally, tourists can opt for split stays, combining accommodations in resorts, guesthouses, and live-aboard vessels.
Future Prospects and Growth
The Maldives continues to evolve as a premier tourist destination, balancing luxury with accessibility. The economy has recovered strongly from the COVID-19 pandemic, showing resilience to subsequent shocks. In 2023, the Maldives surpassed its pre-pandemic record for tourist arrivals with 1.88 million visitors. This strong economic recovery led to a faster normalisation of growth than previously estimated. Real GDP growth moderated to 4.4 percent in 2023, but with the anticipated growth in tourist arrivals for 2024, growth is expected to accelerate to 5.2 percent.
Authorities are prioritising the completion of the Velana International Airport upgrade project, which has the potential to significantly enhance the production capacity of the economy. The main bottleneck facing the expansion of the tourism sector has been the capacity constraints at Velana International Airport, the primary gateway into the Maldives. Fast-tracking the much-delayed airport upgrading project is a major priority of the new administration. The government aims to open the new airport terminal in phases, with the goal of operationalizing the first phase in time for the 2024 tourism peak season in the fourth quarter of the year. The full operationalization of the new terminal will alleviate bottlenecks, allow more flights and passengers, and help raise the occupancy of tourism properties.
Authorities forecast that tourist arrivals will increase to 3-5 million per year with the completion of the project. With bed occupancy at 58 percent in 2023 and more beds in the pipeline, they note that the tourism sector has the capacity to absorb the additional arrivals. Current projections indicate that growth will accelerate to 6.5 percent in 2025 with the terminal opening, and authorities are confident this will support robust growth in the medium term.
With a robust tourism infrastructure and ongoing efforts to promote sustainable and inclusive growth, the Maldives is well on its way to achieving its goal of welcoming two million tourists in 2024. The blend of luxurious resorts, affordable guesthouses, and diverse activities ensures that the Maldives remains a captivating destination for travellers worldwide.
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