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Maldives central bank posts strong growth forecast for ‘resilient’ tourism industry
Maldives central bank has posted a strong growth forecast for the country’s tourism industry as it hailed the resilience of the industry observed last year.
In its annual report for 2016 released Tuesday, Maldives Monetary Authority (MMA) said the strong growth observed in the tourism sector during the latter part of last year is expected to continue this year. The strong growth is attributed mainly to the increased number of tourists from the European market, which reflects better growth prospects for the region, it added.
Mirroring the positive outlook for the sector, MMA projected bed nights growth to be at five percent in 2017.
“These projections may be even higher if the remarkable performance seen in the tourism sector at the turn of the year continues,” the report read.
Recovery in second half of 2016
Maldives marked 2016 as ‘Visit Maldives Year’ in an effort to reach a target of 1.5 million tourists entering the country during the year. Several tourism promotion activities were carried out in Asia and Europe, and many competitions and events were also held within the Maldives to boost tourist arrivals. While the campaign was successful in attracting 1.3 million tourists — four percent more than the previous year — it fell short of reaching the 1.5 million target.
According to MMA, the trend in tourist arrivals to the Maldives during 2016 showed that arrivals picked up strongly in the second half of the year. This increase was underpinned by improving economic conditions in European countries, coupled with a rise in flight movements by international carriers over the period, the authority said adding that the strong growth in arrivals from the European markets more than offset the decline in arrivals from the Chinese market.
MMA noted that other key indicators such as bed nights growth also followed a similar trend, gaining momentum towards the latter part of the year and recording an overall growth of three percent for the year. Reflecting this, the average duration of stay, which has been on a downward trend, fell only slightly to 5.6 days in 2016 from 5.7 days in 2015, contributing to a six percent growth in estimated tourism receipts, it said.
The tourism sector witnessed a major expansion in terms of the number of resorts and bed capacity in 2016, the authority stressed. With the opening of 11 new resorts, the total number of resorts in the country increased to 126 at the end of the year, while the number of registered guesthouses, hotels and safari vessels reached 382, 16 and 144, respectively. With regard to bed capacity, the average operational bed capacity of the industry7 stood at 29,457 beds.
Tourist demographics: Europe regains market share
As for the market share of tourists, Europe accounted for 45 percent of total tourist arrivals, while Asia accounted for 46 percent. Reflecting the improving economic conditions in the European markets, market share for Europe increased; this was a reversal of the downward trend of previous years. However, the market share of Asia — the market leader since 2014 — dipped from the 49 percent in 2015 to 46 percent in 2016.
Arrivals from the European market grew significantly at seven percent during 2016 after recording a marginal growth rate of one percent in 2015. This was mainly supported by growth in arrivals from the UK, despite a marked depreciation in the pound sterling. On the other hand, Germany, the second largest market from the region registered a marginal growth owing to political tensions in their country. Other key markets such as Italy registered a remarkable positive growth, whereas growth in tourists from France dropped significantly during the year. Arrivals from Spain also registered a sizeable growth compared with previous years. In addition, arrivals from smaller source markets in Eastern, Central and East Mediterranean Europe also improved.
“This can be attributed to an increase in flight movements to these regions during the year,” the report read.
MMA noted that arrivals from Russia — the fourth largest European market — also showed a strong positive growth after recording two consecutive years of negative growth. This reflected the easing of the recent economic recession that was prevalent in the country, it said.
Total arrivals from the Asia and Pacific region registered a marginal decline in 2016 after posting a positive growth during the previous year. Growth was largely hampered by the 10 percent decline in Chinese arrivals.
However, other key markets from the Asian region — such as India, Sri Lanka and Malaysia — showed pronounced growth on the back of increased flight movements. Some operators introduced flights to new destinations in 2016, including new flights to New Delhi and Colombo, contributing to more arrivals from both India and Sri Lanka.
MMA attributed the increase in arrivals from Malaysia to the growth in flight movements of a regional low-cost carrier from South East Asia during the year.
Arrivals from the Middle East also posted a strong growth rate, owing to an increase in arrivals from Saudi Arabia. This may be due to a new the commencement of Saudi Arabia’s flagship carrier Saudia between Riyadh and the Maldives, according to MMA.
Arrivals from the Americas, which have doubled in the past five years, also increased due to considerable growth in arrivals from the US.
Similar trends in 2017?
Despite the strong growth forecast by the central bank, Maldives has experienced another slowdown in tourist arrivals in the first quarter of the year. January saw a significant increase in arrivals, but growth has slowed down since then with a 2.1 percent drop in arrivals in March.
Europe, the largest regional source market which has been recovering for the past couple of months after a year of falling growth, also posted a drop of three percent in March with important European markets such as the United Kingdom declining by nine percent.
Middle East, one of the most important emerging source markets, also observed a decline of 8.3 percent in March with arrivals from Saudi Arabia dropping by 31 percent.
Leading global market research and analysis firm STR has also said that the Maldives tourism industry observed a moderate performance in the first quarter of the year.
A report analysing Asia Pacific hotel industry performance shows that occupancy fell by one percent to 69 percent in the Maldives during the first quarter. Average Daily Rate (ADR), however, increased by 2.3 percent to MVR13,044.63 (USD846.5) and Revenue Per Available Room (RevPAR) was up 1.3 percent to reach MVR9,000.17 (USD584).
RevPAR growth was moderate in the Maldives throughout the quarter despite a 10.3 percent increase in January, which was due to a 32 percent rise in arrivals from China during the Spring Festival Golden Week holiday. RevPAR growth for the quarter, however, became muted with declines in both February (-3.8 percent) and March (-4.2 percent).
Over the past three years, dozens of uninhabited islands have been leased to local and foreign resort developers. Several international brands have entered into the market, increasing the number of resorts to 120. That number is set to increase as the government has announced the opening of some 20 new resorts by the end of this year.
Along with the new resort openings come the challenge of increasing demand from budget travellers who choose guesthouses over luxury resorts that the Maldives is known for. The guesthouse sector has rapidly expanded with over 300 guesthouses in operation today.
Government has come under fire from private organisations representing industry stakeholders such as the Maldives Association of Travel Agents and Tour Operators (MATATO) over the lack of effort and budget to promote the Maldives as a destination.
The government has recently announced new steps to maintain a structured growth in tourism, including a slowdown in leasing islands for resort development and increased marketing efforts in key markets such as China and the Middle East in order to reach an ambitious target of a record 1.5 million tourist arrivals this year.
Photo courtesy: Amilla Fushi
Baros Maldives will welcome guests for its festive season from 22 December 2026 to 7 January 2027, with a programme centred on the island’s natural surroundings, Maldivian heritage and a series of culinary, marine and cultural experiences.
The programme will combine Christmas and New Year traditions with activities inspired by island life, including ocean excursions, local cultural experiences, festive dining and wellbeing sessions.
The season will begin with a Christmas Tree Lighting ceremony, followed by a series of activities introducing guests to festive traditions and Maldivian culture. These will include a Christmas cookie workshop, an Ocean, Coconut & Spice cooking class, a Maldivian Heritage Evening and an Island Christmas Market.
Marine experiences will remain a central part of the festive programme. Guests will be able to join a Sunrise Nooma sailing experience, take part in fishing trips at sunrise or twilight, explore the house reef with the resort’s marine team or join a dolphin-watching cruise.
Private yacht excursions, visits to local islands and trips to Malé will also be available for guests wishing to explore beyond the resort.
Baros Maldives will also offer a series of culinary experiences throughout the festive period. These will include a Sake Pairing Dinner, a Great Gatsby-themed five-course dinner and a Champagne Dinner inspired by the Seven Seas.
Other dining experiences will include a Butcher’s Block buffet, an Omakase tasting lunch and a Master Chef Tuna Carving Show & Tasting. Guests will also be able to take part in wine discovery experiences, cocktail-making sessions and an Island Crafted Cocktails programme.
On Christmas Eve, guests will gather at The Lighthouse for a cocktail reception before continuing to Lime for the Christmas Eve Gala Dinner.
Christmas Day will feature breakfast, festive activities and time for guests to enjoy the beach, lagoon and other island experiences with family and friends.
New Year’s Eve celebrations will begin with a cocktail reception, followed by a Gala Dinner, live entertainment and the countdown to 2027.
New Year’s Day will start with a celebratory brunch, followed by a selection of wellbeing and dining experiences. These will include a beachfront degustation dinner accompanied by live violin and saxophone performances.
Younger guests will also have a dedicated programme of festive activities, including mocktail-making, Christmas cookie workshops and island-based activities designed for families and children.
Throughout the season, Baros Maldives will host live music, marine presentations, yoga and meditation sessions alongside its wider programme of dining, recreation and ocean experiences.
The festive programme is intended to reflect the character of Baros Maldives by combining Christmas and New Year celebrations with the island’s marine environment, culinary offering and Maldivian culture.
From 21 December 2026 to 1 January 2027, Niva Kuramathi will mark the festive season with “A Tropical Festive Season”, a programme of dining, entertainment, outdoor activities and family experiences shaped around the island setting.
The programme will make use of Kuramathi’s natural surroundings, including its house reef and sandbank, alongside its 12 restaurants and seven bars.
The festivities will begin on the evening of 21 December with a Christmas Tree Lighting ceremony on the sandbank. Guests will be welcomed with drinks and live music at sunset, followed later in the evening by a traditional Bodu Beru performance.
On 28 and 29 December, the resort will host a traditional Maldivian Market, featuring Bodu Beru drumming, a folklore parade and locally made artisanal crafts.
Christmas Eve festivities
Christmas Eve celebrations will begin on the sandbank at sunset, with welcome drinks and Christmas carols. Santa Claus and his elves will also make an appearance before guests gather for a gala buffet dinner.
The evening will conclude with an outdoor screening of a classic Christmas film under the stars.
Countdown to 2027
New Year’s Eve celebrations will begin at sunset with cocktails on the sandbank.
A gala dinner will then be served across Farivalhu, Malaafaiy and Haruge restaurants before the countdown to 2027. Fireworks will mark the arrival of the New Year, while live music and DJ performances will continue at Fung Bar and Sand Bar.
Festive activities
Throughout the festive period, Niva Kuramathi will offer a programme of recreational, culinary and entertainment activities.
Guests will be able to take part in moonlit yoga sessions on the sandbank, sand sculpting, Sip & Paint evenings for couples and fire dance performances.
Sporting activities will include beach volleyball, a football match between the Niva Kuramathi team and guests, as well as kayak, pedal boat and stand-up paddleboard races.
The entertainment programme will also include wine tastings, karaoke, music trivia, live music and DJ evenings.
Cooking classes will be held at Kobe, where guests will be able to take part in sessions centred around the restaurant’s open kitchen experience.
The festive programme is designed to allow guests to participate in scheduled activities while also having the option to spend time at leisure.
The season will conclude on 1 January 2027 with a late-morning brunch and the first house reef dive of the year.
Festive programme for children
Bageecha Kids Club will host a separate festive programme for younger guests, combining recreation, creative activities and environmental learning.
Activities will include treasure hunts, splash pad games, cookie-making, arts and crafts, eco workshops, nature exploration, holiday films, karaoke, bracelet-making and gardening in the resort’s hydroponic garden.
Children will also be able to take part in scavenger hunts, mini-Olympic games, yoga and disco dancing, as well as shared lunches and dinners with other young guests.
On Christmas Eve, the programme will begin with a family photograph session, followed by gingerbread house decorating, writing letters to Santa, a palm-leaf handicraft workshop and outdoor games.
Christmas morning will feature a pyjama party with musical games and pool activities. Later in the day, families will gather at Athiri Deck to welcome Santa Claus, who will distribute gifts to children.
New Year’s Eve activities for younger guests will take place during the afternoon, with music and games around the pool followed by a children’s disco as part of the resort’s final celebrations of 2026.
Nova Maldives will renew its partnership with PADI this September to co-host Project AWARE Week from 16 to 20 September 2026.
Organised by the resort’s marine team, the programme will give guests, from first-time snorkellers to experienced divers, opportunities to combine marine wildlife observation with practical conservation activities. The initiative is intended to turn time spent in the ocean into an educational experience while encouraging greater awareness of marine conservation.
This year’s AWARE Week coincides with PADI’s 60th anniversary and Nova Maldives’ fourth year of operation in South Ari Atoll. Now in its eighth global edition, PADI AWARE Week has developed into a citizen science movement within the diving community and has helped rescue more than 41,000 entangled marine animals to date.
Through its continued participation, Nova Maldives aims to encourage guests to become ocean advocates and remain engaged with marine conservation beyond their stay.
Guests staying at Nova during AWARE Week will be able to participate in a programme designed for different levels of ocean experience. Activities will include:
- Ocean immersion and storytelling: Sessions inspired by Blue Planet and other ocean documentaries, highlighting the diversity and vulnerability of marine life.
- Dive Against Debris: Underwater clean-up dives in the resort’s lagoon, during which participants will remove plastic and other waste before recording the findings in PADI AWARE’s global database.
- Whale shark snorkelling: Guided encounters that will allow guests to swim alongside whale sharks in the open waters of South Ari Atoll.
- Manta ray and turtle-spotting excursions: Guided boat trips to feeding and nesting areas where manta rays and turtles can be observed in their natural habitats.
- Coral restoration workshops: Practical sessions introducing guests to coral planting and the resort’s ongoing reef regeneration work.
“Some of the most meaningful work happens when you show up year after year. Four years into Nova’s story, we’ve learned that the health of the reef tells us a great deal about the impact we’re making, and that the guests who choose to return aren’t just here for the view,” said Abdulla Aboobakuru, General Manager of Nova Maldives.
“They’re here because Nova reflects something they already care about, including care for the ocean, a sense of community and a more thoughtful way of experiencing the places we visit. That’s what we hope Nova can inspire in new and returning guests alike: less a destination, more a calling.”
The resort’s marine conservation work continues throughout the year. Its coral nursery contains a growing collection of metal frames holding individually secured coral fragments, which are later transplanted onto the house reef. Guests are regularly invited to participate in the planting process, while the marine team monitors the young coral colonies as they develop.
Nova Maldives also maintains partnerships with the Maldives Whale Shark Research Programme and Manta Trust. The resort is accredited as a Responsible Manta Tourism Operator, with the partnerships supporting its year-round approach to marine conservation.
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