The Maldives will need to expand economic activity beyond tourism to achieve stronger long-term growth, Minister of Economic Development and Trade Mohamed Saeed has said, as the government moves to increase the contribution of the digital sector.
Speaking on Tuesday, Minister Saeed said tourism remained the country’s main source of income and continued to play a central role in the economy. However, he said dependence on the sector alone would not be sufficient to take the economy to a higher level.
The government aims for the digital sector to account for 15 per cent of gross domestic product by 2030 as part of its broader diversification agenda.
Minister Saeed said additional digital tools would be introduced for young people, while a modern creator hub is also expected to be established before the administration completes three years in office.
His remarks followed the launch of PayPal services in the Maldives on Monday through a partnership with Ooredoo Fintech.
PayPal enables individuals and businesses to send, receive and manage payments online by linking bank accounts or payment cards. The service is widely used for international transactions, e-commerce and freelance work.
The introduction of the platform is expected to improve access to international payment services for local businesses, freelancers and digital creators.
Minister Saeed also linked the need for economic diversification to recent pressures facing the tourism industry. He said the conflict in the Middle East had contributed to a five per cent decline in tourist arrivals, affecting both the industry and the country’s foreign currency earnings.
Tourism Ministry statistics released on Monday showed that 994,901 tourists had visited the Maldives so far this year, leaving the country 5,099 arrivals short of the one million mark. Tourist arrivals had already exceeded one million during the corresponding period last year.
The decline highlights the risks associated with heavy dependence on tourism, even as the sector remains the country’s largest source of income.
