The Business End

DESPITE ITS REPUTATION as a luxury travel destination, Maldives is one of the world’s economically poorest nations, its developing economy based around fishing and boat building.

Tourism will be vital in the ongoing development of the nation. It is a fastgrowing sector of the economy and is able to attract visitors all-year round, especially in hubs like Male which is home to an increasing number of modern hotels.

A look into February 2019’s statistics is cause for promise, with figures showing a 16.8 percent increase in visitor arrivals compared to the same month last year. In total, 168,583 visitors were recorded, China accounting for 17.8 percent of the total and European markets some 55 percent.

As of February 2019, 137 resorts,

151 safari vessels, 12 hotels and 526 guesthouses of local islands were in operation, creating a capacity of

45,642 beds. Occupancy rate averaged 76 percent with an average stay of just over six days.

A key area of focus will now be on extracting more revenue per arrival. Despite an increase in visitor numbers, tax revenue from tourism goods and services actually fell slightly when compared to the beginning of 2018.

However, the fact that 20 new resorts are due to open this year should help to bring in more income.