Prices in the restaurant and accommodation sector have risen by nearly 30 per cent over the past year, according to the latest Consumer Price Index (CPI) report published by the Maldives Bureau of Statistics.
While the month-on-month increase for February stood at a modest 0.17 per cent, the year-on-year rise reached a striking 29.55 per cent, making it one of the fastest-growing categories in the inflation index. The main contributor to the monthly increase was the rising cost of coffee, which went up by 1 per cent in February alone.
The sharp annual surge is likely to raise questions about affordability in the hospitality sector, particularly in a country where tourism is a primary economic driver and local residents also frequent restaurants, cafés, and guesthouses for daily needs.
Rising costs in this category could be linked to a combination of import prices, increased demand during peak tourist seasons, and broader operational challenges such as high utility rates and transportation expenses. Despite this, restaurant and hotel price growth appears to be outpacing the general CPI increase, which stood at 5.14 per cent year-on-year.
The figures may also reflect post-pandemic corrections and a shift in pricing strategies as businesses adjust to higher operational costs and tighter margins.
