The Maldivian hospitality industry remains one of the largest employers in the country, yet systemic biases continue to limit the representation of Maldivians in senior management roles. Despite regulatory changes aimed at increasing local employment, data from the latest census and industry reports indicate that these efforts have fallen short. With a growing reliance on expatriate workers, particularly in managerial positions, concerns about unconscious bias and structural barriers persist.
Current Employment Trends and Regulatory Challenges
According to the latest resort census, expatriate workers continue to dominate the industry. While some progress has been made in ensuring Maldivians are given opportunities in key roles, the percentage of Maldivians in senior management remains below the mandated 60% threshold in many resorts. HR compliance data collected from various resorts in early 2025 shows that a significant number still fall short of meeting this requirement, raising questions about enforcement and accountability.
The Eighth Amendment to the Employment Act introduced several provisions aimed at improving local workforce participation, including mandatory skill development programmes, structured career progression plans, and revised regulations on expatriate hiring. However, implementation gaps remain. The requirement that the most senior HR official be Maldivian in workplaces with over 50 employees is frequently circumvented, either through role reclassification or the hiring of foreign consultants who effectively oversee HR functions.
The Reality of Systemic Bias
Industry specialists acknowledge that systemic implicit bias continues to shape hiring decisions. While companies publicly commit to localisation efforts, internal hiring practices often favour foreign candidates. This is attributed to several factors, including a long-standing preference for expatriate expertise, entrenched hiring networks, and perceptions about the capabilities of local employees.
Moreover, data indicates that Maldivians seeking employment in the hospitality sector face structural disadvantages. Many report difficulty in securing managerial positions despite relevant qualifications, while others highlight disparities in pay and promotion opportunities compared to expatriate colleagues. The perception that foreign professionals are more capable or more suited to leadership roles continues to influence hiring and workplace dynamics.
Economic Implications of the Expatriate Workforce
The Maldivian economy relies heavily on foreign labour. Census data reveals that for every four members of the local population, there is one expatriate worker. While expatriate workers play a key role in sustaining the industry, particularly in specialist roles where local expertise is lacking, their dominance in senior positions has implications for economic sustainability.
Excessive reliance on foreign labour contributes to capital outflow, with a significant portion of salaries remitted overseas. At the same time, low local workforce participation in certain segments of the industry leads to higher unemployment and underemployment among Maldivians. The situation is further exacerbated by an increasing number of young graduates entering the job market with limited access to meaningful career opportunities in tourism.
Moving Forward: Addressing the Gaps
To achieve meaningful localisation, policy enforcement must be strengthened. The Labour Relations Authority, which oversees compliance with employment regulations, has the power to impose fines for non-compliance with local workforce quotas. However, enforcement has been inconsistent, with many resorts continuing to operate without penalties despite clear breaches of employment law.
More structured vocational training and career development initiatives tailored to the industry are also needed. While the government has introduced training programmes, these efforts must be aligned with the specific needs of resorts to ensure a seamless transition from training to employment.
Additionally, changing industry perceptions requires a cultural shift. Hospitality leaders must be held accountable for fostering inclusive workplaces that prioritise Maldivian talent, not just as an obligation but as a strategic imperative. This involves mentorship, clear promotion pathways, and fair compensation structures to attract and retain local professionals.
The Maldivian hospitality industry stands at a crossroads. Without targeted reforms, the systemic biases that hinder local employment will persist, exacerbating inequality and limiting the sector’s potential for sustainable growth. The challenge now is not only to set regulations but to ensure they are enforced, creating an industry where Maldivians can compete on an equal footing.
