According to Ahmed Nazeer, Secretary General of the Maldives Association of Tourist Industry (MATI), the Maldives’ tourism industry brought in $5.6 billion last year, with resorts accounting for 83.6% of the total.
Speaking on 9th February 2025, at Kurumba Maldives for MATI’s 35th Annual General Meeting, Nazeer emphasized the evolution of the tourist industry over the previous 50 years and its effects on the country’s economy. He pointed out that the sector was vital to economic growth and government revenue.
Nazeer said that last year’s difficulties were caused by changes in taxation related to tourism and urged industry collaboration to guarantee growth in 2025.
Nazeer listed the following important metrics from the previous year’s performance of the industry:
- For the first time, two million tourists arrived, representing a 9% increase from the previous year
- There were 11 million tourist bed nights, a 3% increase
- The occupancy rate was 71.2% overall
- While peak season occupancy averaged 95%, off-peak season occupancy was 50%
These numbers, according to Nazeer, demonstrate the Maldives’ standing as a major international vacation destination, and he gave credit to the industry’s staff for helping to achieve these outcomes.
With MVR 23.1 billion ($1.5 billion) of the MVR 43.2 billion ($2.8 billion) the government earned in 2024, the tourism sector contributed significantly to state revenue.
The breakdown of tourism-related revenue includes:
- MVR 9.5 billion ($620 million) from Tourism Goods and Services Tax (TGST)
- MVR 1.9 billion ($123.6 million) from tourism land rent
- MVR 1.1 billion ($70.5 million) from green tax
- MVR 1.1 billion ($73 million) from airport development fees
- MVR 1.1 billion ($72 million) from departure taxes
- MVR 308 million ($20 million) from lease period extension fees
The distribution of revenue within the tourism sector in 2024 was as follows:
- Resorts: MVR 69.3 billion ($4.5 billion), representing 83.6% of total tourism revenue
- Domestic travel: MVR 5.3 billion ($347.9 million), accounting for 6.5%
- Maldives Airports Company Ltd. (MACL) duty-free revenue, airport development fees, and departure taxes: MVR 3.4 billion ($222.4 million), making up 4%
- Travel agents and tour operators: MVR 2.1 billion ($141.4 million), representing 2.6%
- Guesthouses: MVR 1.5 billion ($95.4 million), contributing 1.77%
Nazeer pointed out that the Maldives imports MVR 15.4 billion ($1 billion) worth of oil a year, making fuel prices a problem. He said that the tourism industry needs to try to lower energy prices because its reliance on imported fuel is unsustainable.
MATI will assist resorts in obtaining incentives for investments in sustainable energy, he said, noting that more and more resorts are implementing renewable energy solutions.
