A recent report by the Mastercard Economics Institute has revealed a significant transformation in the Maldives’ tourism landscape, marked by a sharp rise in budget-conscious travellers. In 2023, tourist arrivals to the Maldives exceeded 1.88 million, the highest figure on record, as the country shifts from being an exclusive, luxury destination to one more accessible to a wider range of visitors.
According to the report, since 2019, the number of budget-friendly hotels has outpaced the growth of high-end luxury resorts. This shift reflects a growing demand for more economical travel options. In the first half of 2024, 35% of travellers sought out more affordable accommodation, particularly in guesthouses. These establishments have maintained high occupancy rates, with 40% of guesthouses fully booked for much of the year, underscoring the popularity of this sector.
The report also noted that many tourists are now opting to visit quieter, less crowded islands, moving away from traditional hotspots such as Malé. This shift not only provides travellers with a more tranquil experience but also supports the economies of smaller, less developed islands.
Budget travellers are making a tangible economic impact beyond the resort sector. These tourists tend to spend more in local restaurants and retail outlets, providing a boost to businesses outside the luxury resort market. As a result, tourism’s economic benefits are becoming more widespread, reaching communities and smaller businesses that have previously seen less of the sector’s wealth.
The Mastercard Economics Institute, which provided the data for this report, used aggregated and anonymised transaction data to analyse consumption patterns in the Maldives. Their findings highlights the Maldives’ growing appeal as a destination that is now not only a luxury playground but also an accessible haven for more cost-conscious travellers.
