Tourism industry generated $5.6 billion in 2024, resorts accounted for 83.6%

The Maldives’ tourism industry generated $5.6 billion in revenue last year, with resorts contributing 83.6% of the total, according to Ahmed Nazeer, Secretary General of the Maldives Association of Tourism Industry (MATI).

Speaking at the 35th Annual General Meeting of MATI at Kurumba Maldives on Sunday, Nazeer highlighted the changes in the tourism sector over the past 50 years and its impact on the national economy. He noted that the industry played a key role in government revenue and economic development.

Nazeer stated that changes in tourism-related taxes created challenges last year and called for industry-wide cooperation to ensure growth in 2025.

Nazeer outlined key figures from the industry’s performance last year:

• Tourist arrivals reached two million for the first time, reflecting a 9% year-on-year increase.
• Total tourist bed nights increased by 3% to 11 million.
• Overall occupancy stood at 71.2%.
• Resort occupancy during the off-peak season was 50%, while peak season occupancy averaged 95%.

Nazeer stated that these figures reflect the Maldives’ position as a key global travel destination and credited the industry’s workforce for its role in achieving these results.

The tourism industry accounted for a significant portion of state revenue, contributing MVR 23.1 billion ($1.5 billion) of the total MVR 43.2 billion ($2.8 billion) received by the government in 2024.

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 highlighted the cost of fuel as a challenge, noting that the Maldives imports MVR 15.4 billion ($1 billion) worth of oil annually. He stated that the reliance on imported fuel is not sustainable and that the tourism sector must work towards reducing energy costs.

He noted that an increasing number of resorts are adopting renewable energy solutions and stated that MATI will support resorts in securing incentives for investments in sustainable energy.