The Maldives Monetary Authority’s (MMA) Quarterly Economic Bulletin for the second quarter of 2025 highlights a steady acceleration in real economic activity, underpinned by strong tourism performance and growth in construction, real estate, and fisheries.
According to the report, total tourist arrivals reached 475,708 during the quarter, representing an annual growth of 16% compared with the same period last year. By the end of June, the country had already welcomed one million visitors, marking the fastest pace ever recorded. The expansion of international flight movements, which grew by 6%, helped sustain this momentum despite the onset of the off-peak season.
Europe remained the leading regional source market, accounting for 55% of arrivals, up from 52% in Q2 2024. Asia and the Pacific contributed 34%, maintaining its share from the previous year. China consolidated its position as the top individual market, representing 14% of total arrivals, followed by Russia at 13%, the United Kingdom at 9%, Germany at 8%, India at 7%, and Italy at 6%. Arrivals from India reversed earlier declines, showing a significant recovery after consecutive downturns since 2023.
Tourist bednights increased by 5% year-on-year, supported by higher occupancy in guesthouses and resorts. Guesthouse bednights rose sharply by 28%, while resort bednights increased by 2%. The average stay length stood at 6.8 days, slightly lower than the 7.4 days recorded in Q2 2024, reflecting a modest shift in visitor patterns during the off-peak period.
The tourism sector’s strong performance continued to stimulate related industries. Construction and real estate both recorded notable expansion during the quarter. The MMA reported an 11% increase in imports of construction-related materials and a 2% annual growth in commercial bank credit to the sector. The increase in lending was largely linked to resort renovation projects, property development, and commercial building construction. Real estate activity also remained positive, with its gross value added rising by 3.7% in the first quarter, and high-frequency indicators suggesting continued strength in Q2.
Fisheries, which had experienced a decline earlier in the year, saw a sharp rebound. Fish purchases by processing companies totalled 20,832 metric tonnes in Q2, up by 101% from the same period last year. This was primarily driven by a 133% surge in skipjack tuna purchases. Although the average purchase price of skipjack tuna declined to MVR 14 per kilogram due to the move toward market-based pricing, yellowfin tuna prices rose to MVR 64.6 per kilogram, reflecting stronger export demand.
The wholesale and retail trade sector showed mixed outcomes. Imports recorded a marginal annual decline of 1%, while credit to the sector grew by 17%. The mixed performance suggests that while domestic demand remained steady, tighter financial conditions and reduced import volumes tempered overall growth in trade activity.
Overall, the MMA report indicates that the Maldives’ real economy benefited from tourism-led expansion and complementary growth in key productive sectors during the second quarter of 2025. The consistent rise in visitor numbers, coupled with renewed construction activity and recovery in fisheries, contributed to a solid foundation for the country’s medium-term growth outlook. However, the report also notes that continued diversification efforts will be essential to sustain economic resilience beyond the tourism cycle.
