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Tourism: The Lifeblood of Maldives’ Economy and Its Path to a Sustainable Future

Photo---Baros Maldives

Photo---Baros Maldives

Mariyam Milzam MasoodMariyam Milzam Masood

03 October 2024 - 07:44

Introduction to Maldivian Tourism

Tourism has been the cornerstone of the Maldivian economy for over five decades, with its origins in 1972 when Kurumba Island Resort welcomed the first batch of tourists. From just a handful of visitors, the Maldives has transformed into one of the world’s most sought-after destinations, attracting millions every year. Tourism plays an essential role in the country’s economic development, contributing around 28% of the Maldives' GDP and creating a substantial portion of employment for its population. What began as a small luxury offering has since evolved into a dynamic, multi-faceted industry that caters to a wide range of tourists, from high-end resort visitors to budget-conscious travelers staying in guesthouses.

undefined The first Kurumba tourists were primarily Italians--- Photo/Kurumba Maldives

The Expansion and Diversification of Tourism

Over the past decades, the Maldivian tourism sector has diversified significantly. Initially, the country catered almost exclusively to the luxury market, with resorts built on private islands offering secluded getaways. However, in the early 2000s, the government began promoting guesthouse tourism, allowing local communities to benefit more directly from the influx of international visitors. These guesthouses now operate on inhabited islands, providing affordable accommodations and allowing visitors to engage more intimately with local culture and traditions. Furthermore, the tourism offering has expanded beyond sun, sand, and sea. New experiences such as eco-tourism, cultural tourism, and adventure tourism (e.g., diving with whale sharks or exploring biosphere reserves) have been introduced to appeal to a broader range of travelers. This diversification aligns with the Maldivian government’s strategy of making tourism more sustainable and inclusive.

undefinedGuest house in Maldives in the early 2000's--- Photo/MER.mv

Sustainable Tourism and the Fifth Tourism Master Plan

The Maldives has made significant strides toward sustainable tourism, underpinned by the Fifth Tourism Master Plan (5TMP) for 2023-2027. This plan aims to balance the economic benefits of tourism with environmental preservation and social development. Key goals of the 5TMP include increasing climate resilience, reducing the sector’s carbon footprint, and integrating local communities into the tourism value chain. One major initiative is the promotion of renewable energy, with the goal of transitioning resorts from diesel to solar power. The Maldives is particularly vulnerable to climate change, with rising sea levels threatening its very existence. As a result, the 5TMP also emphasizes the importance of sustainable infrastructure and practices, including proper waste and water management, safeguarding coral reefs, and preserving marine biodiversity.

undefinedMaldivian Resort--- Photo/Forbes Magazine

Current State of Tourism in the Maldives

The tourism industry in 2024 is poised for continued growth, with projections indicating that over 2 million tourists will visit by the end of the year. China and India remain key source markets, with China expected to account for 14.6% of total visitors. To meet this growing demand, the Maldives has embarked on numerous development projects, including new airports, resorts, and seaplane hubs. Notably, the expansion of Addu City’s tourism infrastructure is expected to position the southern atolls as a new tourism hub. Furthermore, the diversification of tourism products is gaining momentum, with new efforts to promote MICE tourism (meetings, incentives, conferences, and exhibitions), culinary tourism, and eco-tourism. These initiatives aim to broaden the Maldives' appeal and mitigate the risks associated with seasonality and reliance on traditional markets.

undefinedSea plane terminal at Maldivian main airport---- Photo/Maldives Insider

undefinedVelana International Airport---- Photo/Avas

The Lifeblood of the Maldivian Economy Tourism is the lifeblood of the Maldives' economy, driving growth, employment, and development across the archipelago. With its ambitious Fifth Tourism Master Plan, the Maldives aims to lead the world in sustainable tourism, ensuring that future generations can continue to benefit from the nation’s natural beauty. On this World Tourism Day, it is important to recognize the profound impact tourism has had on the Maldives and the role it will continue to play in shaping the nation’s future.


References:

- Eurasia Review, "Maldivian Tourism Recovers from Setbacks – Analysis," 2024

- Maldives Insider, "Maldives tourism poised for strong growth in 2024," 2023

- Maldives Financial Review, "The Fifth Tourism Master Plan - A primer," 2023

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