Navigating economic challenges and tourism: Insights for Maldives’ tourism future

The Hotelier Maldives GM Forum 2024, held at CROSSROADS Maldives on September 19, featured a thought-provoking panel discussion titled, ‘Shaping the Future: Strategic Insights from Maldives.’ This session aimed to address key issues concerning the Maldivian economy, with a particular focus on the tourism sector, foreign investment, fiscal policies, and aviation infrastructure.

Moderated by TV presenter Fathimath Sarah, the discussion highlighted insights from four distinguished panelists: Moosa Zameer, Minister of Foreign Affairs; Mohamed Saeed, Minister of Economic Development and Trade; Ibrahim Shareef Mohamed, CEO & Managing Director of Maldives Airports Company Limited (MACL); and Mohamed Khaleel, Advisor to the President on Tourism Development.

The panel covered critical thematic areas, discussing foreign investment strategies, fiscal management, tourism growth, and the importance of sustainable development. Each panelist brought unique perspectives from their respective areas of expertise.

Foreign Affairs and Investment

The discussion began with Foreign Minister Moosa Zameer, who outlined the critical role of foreign relations in shaping the economic landscape of the Maldives, particularly within the tourism industry. Zameer emphasised that geopolitical shifts create both opportunities and challenges for the Maldives.

“In attracting sustainable foreign direct investments (FDIs), the Maldives is focusing on building stronger bilateral agreements, particularly with emerging markets,” Zameer explained. He highlighted that the Ministry of Foreign Affairs is actively exploring partnerships that can contribute to the development of high-end and sustainable tourism infrastructure.

Zameer also discussed the Ministry’s initiatives to diversify tourism source markets. “While Europe remains a key source, we are looking towards expanding our reach into markets such as China, the Middle East, and Southeast Asia,” he stated. This diversification is seen as crucial to maintaining the resilience of the tourism industry amid global uncertainties.

When asked about the role of diplomacy in promoting tourism, Zameer noted, “International diplomacy is pivotal. Our partnerships with international organisations are focused on enhancing tourism, whether it be through promoting tourism or securing foreign investments that align with our development goals.”

Fiscal Policy and Economic Stability

Minister of Economic Development and Trade Mohamed Saeed addressed the government’s fiscal strategies, focusing on the challenges posed by public debt and the need for continued investment in key sectors such as tourism and infrastructure. Saeed spoke candidly about the difficulties in managing debt while stimulating economic growth.

“We recognise the importance of balancing public debt with investment in tourism infrastructure. This sector is the lifeblood of our economy,” Saeed noted. He mentioned that fiscal reforms are being implemented to encourage private sector investment, particularly in the hospitality industry.

Saeed also highlighted the importance of economic diversification. “While tourism will continue to be our leading industry, there are ongoing efforts to promote other sectors, such as fisheries and manufacturing, to ensure broader economic resilience,” he explained.

In terms of trade partnerships, Saeed shared that several agreements have been signed to boost tourism-related imports, especially in sustainable technologies. “Our goal is to incentivise the adoption of green technologies within the hospitality sector, ensuring that our growth remains aligned with environmental sustainability.”

Airport Developments

The discussion then shifted to aviation infrastructure, with MACL CEO Ibrahim Shareef Mohamed offering insights on the future of Velana International Airport and its role in supporting tourism growth. With the Maldives expected to welcome increasing numbers of international tourists, Shareef emphasised the importance of expanding airport capacity.

“Velana International Airport is at the heart of our tourism industry. We are currently working on infrastructure upgrades that will increase the airport’s capacity and enhance the overall travel experience for visitors,” Shareef said. He highlighted MACL’s ongoing collaboration with international airlines to ensure seamless connectivity between the Maldives and major tourism markets.

In terms of domestic connectivity, Shareef discussed efforts to improve air travel between the capital and remote islands. “We are investing in new domestic airports and upgrading existing facilities to make it easier for tourists to reach remote resorts and guesthouses, thereby encouraging tourism development across the country,” he added.

Tourism Development

Mohamed Khaleel, Advisor to the President on Tourism Development, discussed the government’s long-term vision for tourism development. Khaleel stressed that while luxury tourism remains a cornerstone of the Maldivian economy, there is a growing focus on sustainability and diversification.

“Our high-end tourism model has been incredibly successful, but we are now looking to diversify beyond resorts to include more experiential and community-based tourism,” Khaleel explained. This approach, he said, would allow the Maldives to offer a broader range of experiences to international travellers while also promoting sustainable practices.

Khaleel also outlined several government initiatives aimed at ensuring the Maldives remains competitive in the global tourism market. “We are working on new tourism products that can attract high-end travellers while ensuring that our resources are protected for future generations,” he stated.

The session wrapped up with a brief Q&A, allowing attendees to ask questions and seek further insights from the panelists. Key topics discussed included the Maldives’ macroeconomic challenges, the role of public-private partnerships in infrastructure development, and how the Maldives plans to navigate the evolving global economic landscape.

The panel discussion, ‘Shaping the Future: Strategic Insights from Maldives,’ provided a comprehensive overview of the challenges and opportunities facing the Maldivian economy, with particular focus on tourism. With a blend of overcoming macroeconomic challenges, foreign investment strategies, fiscal reforms, and infrastructure upgrades, the session highlighted the importance of a coordinated, forward-looking approach to ensure long-term economic growth.

This year’s GM Forum, now in its eighth edition, focused on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders discussed the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. The forum featured diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aimed to foster active participation and share innovative case studies from the luxury travel industry.

Sponsors and partners of GM Forum 2024, the largest gathering of hospitality leaders, include:

• Ooredoo Maldives: Digital Partner (Title Sponsor)
• Bestbuy Maldives (BBM): Silver Sponsor
• Dhivehi Insurance: Silver Sponsor
• Fuel Supplies Maldives: Silver Sponsor
• Maldives Airports Company Limited (MACL): Silver Sponsor
• Manta Air: Aviation Partner
• Male’ Aerated Water Company: Beverage Partner
• Atmosphere Wellness: Wellness Partner
• Souvenir Marine: Transport Partner
• Printlab: Printing Partner
• CROSSROADS Maldives: Venue Partner
• Lights Out: Coverage Partner
• Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives