Hotelier Maldives GM Forum 2025 panel urges policy stability, investor confidence in tourism

At the General Managers (GM) Forum 2025 organised by Hotelier Maldives at Kurumba Maldives on Monday, a panel discussion titled “Aligning Investor Appetite with the Maldives’ Long-Term Tourism Strategy” examined challenges in the tourism sector, including revenue performance, investment returns, and confidence in the business environment.

Diversifying Tourism Beyond the Traditional Model

During the panel, moderated by Aminath Zaady, Chief Operating Officer at Brennia Maldives, Pulse Hotels & Resorts Chief Executive Officer, Mohamed Khaleel, said the future of tourism required new approaches and innovation. He noted that the sector must move beyond the traditional honeymoon segment and develop new types of real estate and experiential tourism.

Khaleel stated that return on investment and occupancy rates had declined, with over 40 per cent of available beds currently unused. Although tourist arrivals have increased, he said the growth had not translated into proportional revenue gains.

“Investors will look at earnings, profitability, and return on investment,” Khaleel said.

He also highlighted concerns over investor confidence, stating that trust in the judiciary and consistency in legal processes were essential. “Many companies in the tourism sector are tied up in court. Without certainty and confidence in the system, investors will not come here,” he said.

Khaleel further urged greater consultation between the government and industry stakeholders when shaping tourism policies. He added that younger generations were reluctant to join the sector due to challenges in achieving work-life balance.

Need for Gradual Policy Implementation

Atmosphere Core Deputy Managing Director and Head of Investment Strategy, Shrikant Dash, supported the call for predictability in government policies. He said that in Dubai, tax changes were announced well in advance, allowing businesses time to prepare.

“New policies should be introduced gradually to reduce disruption to the industry,” he said.

Shrikant also noted limited access to funding from local banks and said that most tourism investments over the past decade had relied on foreign financing. He suggested maintaining a long-term target of three million visitors annually, focusing on key markets such as China and India, and introducing specialised tourism segments, including medical and wellness travel.

Strengthening the Resort Offer

Sun Siyam Resorts Vice President of Operations, Abdulla Thamheed, said the Maldives needed to develop larger integrated resorts with more facilities and entertainment options to attract wider market segments. He referred to international examples where diverse offerings had driven higher visitor engagement.

All panellists agreed that consistent policies, improved legal frameworks, and joint efforts between government, businesses, and stakeholders were essential to strengthen investor confidence and sustain long-term growth in the tourism sector.