Resort revenue plummeted by a staggering USD 529 million compared to the previous year’s figures, according to a report released by the Maldives Association of Tourism Industry (MATI).
The report reveals that in 2023, resorts amassed a total revenue of USD 3.9 billion (MVR 60 billion), marking a notable decrease from the USD 4.4 billion (MVR 68 billion) reported in 2022. This downturn in revenue is part of a broader trend within the tourism sector, which saw a decrease of USD 406 million (MVR 6.3 million) in overall revenue compared to the previous year, culminating in a total tourism revenue of USD 5 billion for 2023.
Of significant concern is the fact that revenue generated by resorts accounts for a substantial portion of the government’s income from the tourism sector. In 2023, resorts contributed USD 481 million in Tourism Goods and Services Tax (TGST) alone, constituting 85 percent of total taxes collected from the tourism industry. Additionally, resorts contributed USD 61 million in other taxes, making up a significant portion of the government’s revenue stream.
The decline in resort revenue comes amidst global conflicts and a shift in tourist preferences from resorts to guesthouses. The World Bank attributes this shift in demand to various factors, including changing travel patterns and economic uncertainties.
In response to the challenging situation, the government has announced ambitious targets to attract tourists to the Maldives in 2024. With plans to welcome 2 million visitors, efforts are underway to enhance infrastructure, including the opening of a new terminal at Velana International Airport. The World Bank anticipates that these measures will help rejuvenate tourism revenue and bolster the country’s economy in the coming year.
