rfc logo transparent

Country Highlights

Maldives Tourism and its Economic Impact

The Maldives’ economy is heavily dependent on tourism, with the sector directly contributing to 40% of the country’s GDP, 80% of its exports, and half of its total revenues. The COVID-19 pandemic brought global tourism and travel to a standstill, leading to a 67.4% drop in tourist arrivals and a 32.9% contraction in the economy, the deepest recession on record. The sudden stop in tourism, the main driver of growth, jobs, and revenues, had devastating economic consequences for the tourism-dependent economy. The country’s heavy reliance on tourism and fisheries for livelihoods makes it vulnerable to any impact on tourism, with disruptions from the pandemic and new shocks from the war in Ukraine highlighting the sector’s fragility.

However, the Maldives has seen a steady rebound in tourism, with over two-thirds of the country’s population fully vaccinated and tourist numbers steadily increasing since late 2020. After an 18-year record low of 555,494 visitors in 2020, the country attracted 1.3 million visitors in 2021, and it has successfully attracted tourists from new and emerging markets to supplement traditional ones like India and Russia. The Maldives is also working to diversify its economy beyond tourism, with a focus on expanding the fisheries and establishing a decentralized network to provide public services. The country is also working on initiatives that factor in its nature and health and wellness tourism, as well as promoting sustainable and nature-friendly tourism. The Maldives’ dependence on tourism and limited sectoral diversification remain key structural challenges, and the country faces risks from commodity price volatility, high debt levels, and external financing needs. While the global tourism sector outlook is robust, reforms are needed to improve the fiscal outlook and ensure debt sustainability. The Maldives’ heavy reliance on tourism and limited sectoral diversification remain key structural challenges, and the country faces risks from commodity price volatility, high debt levels, and external financing needs. While the global tourism sector outlook is robust, reforms are needed to improve the fiscal outlook and ensure debt sustainability.

Wish to build solutions and build strategies? Let's get on a Call to discuss your Business

Scroll to Top
rfc logo transparent
Search

About Ruskin Felix Consulting LLC

Industries

Understand multiple industries at a glance, which encompasses change as its core attribute.

Services

RFC helps clients generate long-term value for all stakeholders. We help clients transform, grow, and operate while fostering trust through assurance with our services and solutions, which are made possible by data and technology.

Sustainability

We balance ESG and risk mitigation in our professional services. Our consulting experts make sustainability a business priority with vision and pragmatism.

Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

Receive the latest news

Subscribe To Our Newsletter

Get notified about new articles and business opportunities

Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

About Ruskin Felix Consulting LLC

Stay In Touch

Get in touch with our team for customizable services!

rfc logo transparent

Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.