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New analysis says Maldives challenges short-term, will remain highest rate-yielding Asia Pacific market

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Despite increased pressure on the resort market due to a large influx of new supply, Maldives will remain as one of the highest rate-yielding markets in Asia Pacific, global hospitality consulting firm Horwath HTL has said.

In its market outlook for the Maldives, Horwath HTL said foreign tourist arrivals have grown at a 10-year compound average annual growth (CAAG) rate of 8.1 per cent from 2008 to 2018. Though 2018 recorded an increase in foreign arrivals to 1.48 million, YoY growth was at a slower pace of 6.8 per cent due to several factors, including a downturn in the Chinese market and increased political turmoil, it added.

Horwath HTL highlighted the slight shift in demographics in recent years following a decline in Chinese arrivals and an increase in key European arrivals. In 2018, Europe accounted for almost 49 per cent of total foreign arrivals due to a robust increase in arrivals YoY from Italy (18.5 per cent), Germany (4.8 percent), and the United Kingdom (10.2 per cent), it said.

“Placement of countries in the top ten have mostly remained the same compared to 2017, except that the USA overtook Japan to claim eighth place on the back of a larger leap in YoY arrivals. Additionally, Australia replaced South Korea in the tenth place after significant growth in tourist arrivals by about 36 per cent YoY,” the report read.

2018 saw highest supply increase

Horwarth HTL stressed that hotel bed capacity saw the greatest increase YoY in 208, growing by 21 per cent, with the number of registered beds for 2018 totalling to 43,025.

Kaafu Atoll, comprising both North and South Male Atolls, has consistently accounted for the largest share of beds in a single atoll in the Maldives (40 per cent in 2017). The second most concentrated single atoll by bed capacity in 2017 was Alif Atoll (Ari Atoll). Alifu Dhaalu (South Ari) Atoll accounted for about 12 per cent of beds whilst Alifu Alifu (North Ari) Atoll accounted for another eight per cent.

Whilst Baa atoll has become popular for resort development given its UNESCO Biosphere Reserve tag, other atolls that are fast developing include Raa atoll, Dhaalu atoll, and Haa Alifu Atoll. In 2017, bed capacity YoY increased by 99 per cent, 52 per cent, and 48 per cent, respectively.

“With the abundance of resorts in Baa atoll, developers are now looking at its neighbour to the north – Raa atoll. Due to its relatively untouched marine life, developers are now flocking to the atoll for its interesting underwater topography and marine life,” the report read.

Luxury resorts away from Male perform better

According to Howarth HTL, ultra-luxury resorts (above USD 1,000 per night) situated away from Male atoll have historically achieved higher rates than those within Male atoll, albeit at the expense of lower occupancy levels.

“Higher rate premiums are often justified by the more exclusive location of resorts further away from Male atoll, as well as the less polluted waters when situated further away from the capital city of Male,” the report read.

“Rate-wise, since 2015, other atoll resorts have achieved higher rate premiums over Male atoll resorts.”

Howarth HTL found that resorts in Male atoll within the USD 600-1,000 ADR category had experienced a large decline in their historically high occupancy levels over the last five years whilst occupancy of resorts in other atolls had been more stable. Rate-wise, Male atoll resorts had achieved a higher average ADR than resorts in the other atolls despite their overall ADR growth in the past five years being negative (-1.7 per cent) compared to the positive growth (1.2 per cent) of resorts in the other atolls, it said.

Howarth HTL noted that ADR of resorts in both Male and other atolls that are in the below USD 600 category has seen overall declines in the last five years (-2.4 per cent and -0.4 per cent YoY, respectively). This was attributed to the rising competition from cheaper guesthouses.

“In 2018, other atoll resorts with an ADR of above USD 1,000 achieved the highest RevPAR among all categories. This was largely on the back of higher overall ADR. Meanwhile, Male atoll resorts with an ADR of below USD 600 achieved the lowest RevPAR performance due to its low overall rate despite a higher average occupancy,” the report read.

Short-term challenges, market correction to occur 

This year will see a large influx of supply into the resort market, with 17 new openings (2,175 keys) overall. The luxury, upper upscale and upscale segments will see ten, six and one new additions, respectively.

Male atoll itself will contribute 581 more keys in 2019. Dhaalu atoll trails behind for 2019, with an anticipated 536 keys. Gaafu Alifu Atoll is third (331 keys), followed by Raa atoll (312 keys), then Baa atoll (226 keys). The remaining 37 per cent of new supply will be spread out over 2020 and 2021.

Howarth HTL stressed that the large influx of new supply is expected to put pressure on the resort market in the short to mid-term, with occupancy falling to 55 per cent in the above USD1,000 category, 70 per cent in the USD 600-1,000 category and 65 per cent in the below USD 600 category. Rate-wise, the market should not expect large bouts of growth given the stiffer competition compared to five years ago, it said.

“However, the market should remain as one of the highest rate-yielding markets in Asia Pacific. As supply growth tapers and demand continues to grow because of the destination’s unique geography, we should expect overall resort market occupancy to improve in the long run,” the report read.

This report comes amidst concerns by 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.

These concerns come as the world-famous holiday destination struggles to match an increased bed capacity.

Over the past few 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 more than 130. That number is set to increase as another 20 resorts are expected to open over the next two years.

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 500 guesthouses in operation today.

The previous government announced 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.

Meanwhile, the new government has pledged to ramp up tourism promotion.

Reflecting the new government’s pledge, the state budget for 2019 includes MVR 104,200,000 (USD 6.7 million) for tourism promotion, up from MVR 34,733,333 (USD 2.2 million) this year and the previous year.

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Ataraxis Grand & Spa hosts integrated work-and-dive corporate retreat in Fuvahmulah

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Ataraxis Grand & Spa recently hosted a week-long, closed corporate offsite in Fuvahmulah for a US-based artificial intelligence company, highlighting the island’s growing suitability for integrated work-and-experience retreats. The retreat brought a group of 36 international professionals to the property, which was reserved exclusively for the programme.

Designed as a private company offsite, the stay combined structured daily work sessions with guided diving and beginner-friendly surf experiences, creating a balanced format that blended focused collaboration with physical reset.

A notable component of the programme was dive training and certification. During the retreat, 17 participants completed their Open Water certification, while a further six undertook the Advanced Open Water course, with training and dives scheduled alongside work sessions as part of the integrated itinerary.

Throughout the week, participants worked on-site using dedicated shared spaces supported by reliable high-speed internet, allowing meetings, informal collaboration and scheduled activities to take place within a single, uninterrupted environment. This setup enabled teams to move seamlessly between work periods and organised ocean activities without leaving the property.

Fuvahmulah’s natural and operational advantages formed a key part of the retreat’s appeal. As one of the Maldives’ largest inhabited islands, it offers immediate access to pelagic dive sites, internationally recognised shark diving and surf breaks suitable for instruction, alongside the infrastructure required to support extended group stays.

The offsite reflects a growing preference among technology and knowledge-sector teams for small-scale retreats that prioritise concentrated work environments and team cohesion over traditional conference formats. Such programmes typically involve longer stays and higher per-capita spend, aligning with sustainable, quality-driven tourism models.

The retreat also demonstrates how locally operated properties such as Ataraxis Grand & Spa are supporting this shift by delivering unified environments where accommodation, workspaces, connectivity and curated experiences operate as a single programme rather than separate services.

As organisations continue to explore alternative formats for strategy sessions, team resets and creative offsites, Ataraxis Grand & Spa’s experience positions Fuvahmulah as an increasingly viable destination for integrated corporate retreats.

Ataraxis Grand & Spa offers work-and-dive retreat programmes in Fuvahmulah that combine accommodation, dedicated workspaces, high-speed connectivity and organised diving and surfing.

Further information on retreat formats and dive-inclusive stays is available via the Ataraxis Grand & Spa website.

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Bestbuy Maldives, Atmosphere Core elevate chef training with Michelin-star masterclass

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Bestbuy Maldives (BBM) brought together 100 chefs from leading resorts and restaurants across the country on 24 November for an exclusive culinary masterclass led by Italian One-Michelin-Star Chef Pasquale Palamaro. Held at Hulhule Island Hotel (HIH), the full-house session marked a key highlight of the ongoing “Mediterranean Soul, Maldivian Heart” culinary series presented by Atmosphere Hotels & Resorts in collaboration with BBM.

The masterclass formed the Malé City chapter of the broader programme, which features a lineup of events hosted at RAAYA by Atmosphere and VARU by Atmosphere throughout November 2025. The HIH masterclass served as a platform for professional development, skill exchange, and hands-on learning for chefs from some of the Maldives’ most distinguished culinary teams.

Chef Pasquale, celebrated for his work at Indaco Restaurant in Amalfi, guided participating chefs through a series of live demonstrations that reflected his signature philosophy—one that emphasises intuition, simplicity, and a deep respect for natural ingredients.

“Cooking, to me, is a dialogue with nature — an art of transforming simplicity into beauty. Bringing Indaco’s spirit to the Maldives is an opportunity to merge two coasts and two cultures through taste, technique, and emotion,” he shared during the programme.

Participants explored Mediterranean-inspired methods adapted to Maldivian produce, with Chef Pasquale showcasing dishes rooted in coastal heritage and contemporary craftsmanship. The session also encouraged discussion around ingredient integrity, sustainability-led cooking, and the evolving expectations of today’s luxury diners.

The fully subscribed masterclass reaffirmed BBM’s long-running commitment to cultivating professional excellence within the Maldives’ hospitality sector.

As the authorised distributor of globally renowned culinary and F&B brands, BBM has built a reputation for its Masterclass Series, which brings international expertise to local professionals through practical workshops and high-level training. This latest edition added a Michelin-starred perspective to the growing body of knowledge BBM continues to nurture across the industry.

Ali Afrah Hassan, Head – Human Resources, Administration & Corporate Affairs at BBM, highlighted the importance of consistent capacity building in the sector.

“This masterclass reflects our ongoing commitment to strengthening the skills of the Maldivian culinary community. By creating opportunities for chefs to learn directly from international experts, we help broaden professional exposure and support the industry’s growth. BBM will continue to invest in platforms that uplift local talent and contribute to raising the overall standard of hospitality in the Maldives,” he said.

The masterclass follows two immersive days at RAAYA by Atmosphere earlier in the month, where guests joined farm experiences, tasting sessions, and a hands-on workshop before a five-course dinner curated by Chef Pasquale. The series will continue with a 4-Hands Dinner at Kaagé on 27 November and a masterclass with a five-course dinner at NÜ on 28 November at VARU by Atmosphere.

Anupam Banerjee, Vice President, Food & Beverage at Atmosphere Core, emphasised how the collaboration bridges traditions and culinary ideologies.

“All our island resorts have long been recognised for their culinary offerings,” he noted. “Through Chef Pasquale’s artistry and our island-inspired ethos, we are crafting an evocative dialogue between Mediterranean and Maldivian gastronomies that not only captivates the palate but also champions environmental stewardship and celebrates the cultural richness of both regions.”

For attending chefs, the session offered more than demonstrations—it provided the rare opportunity to learn directly from a Michelin-starred figure whose approach blends innovation with a respect for locality. Many participants described the workshop as an opportunity to refine technique, discover new applications for familiar ingredients, and build valuable connections within the professional community.

With strong engagement and enthusiastic feedback from attendees, the masterclass stands as another milestone in BBM’s long-standing role in elevating culinary standards in the Maldives.

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2 decades of culinary excellence: BBM’s founding legacy with Hotel Asia continues in 2025

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Hotel Asia Exhibition and International Culinary Challenge is referred to be the hospitality industry event in the Maldives. In this year’s Culinary Challenge (19 to 22 October 2025) comprising competitions over 20 categories, most will take place at the Faculty of Hospitality and Tourism Studies, Maldives National University, and some at the Synthetic Track, Hulhumalé.

A Founding Partnership that Endures

Since the very first edition in 2001, Bestbuy Maldives (BBM) has played a central role in shaping the International Culinary Challenge into the Maldives’ most prestigious culinary platform. The event has become a cornerstone for professional development, bringing together chefs from across the Maldives to compete, learn, and showcase their craft.

BBM and their associated Principals sponsor an overwhelming majority of categories. “From the beginning, our goal has been to create opportunities for Maldivian chefs to rise to global standards. This partnership has grown with the industry itself,” said A.V.S. Subrahmanyam, Chief Operating Officer of BBM.

Nurturing Local Talent

BBM’s contribution extends beyond sponsorship. The company has built a long-term system for recognizing and developing local culinary talent.

  • BBM Chairman’s Trophy for the Best Maldivian Competitor.
  • Most Promising Young Chef Award for emerging talent.
  • Global exposure programs for Maldivian chefs through sponsored participation in international events.
  • Pro-bono Masterclasses with world-renowned chefs to encourage learning and innovation.

Investing in the Future of Hospitality

Through initiatives such as Building Young Talent, BBM continues to mentor aspiring professionals and support the next generation of chefs. The company also promotes inclusivity by sponsoring opportunities for female and young chefs to gain international exposure.

BBM’s industry partnerships include its role as Title Sponsor of the Hotelier Maldives Awards, celebrating excellence across the Maldivian hospitality sector.

Proud Sponsors of Culinary Excellence

In 2025, BBM and its partner brands proudly sponsor 14 competition categories and 8 Main Awards, further strengthening their role in the development of culinary arts in the Maldives. Categories include Decorated Cake, Artistic Showpiece, Bread and Pastry Display, Three Desserts (Display), Desserts, Rice Dish, Asian Noodles, Team Challenge, Maldivian Dish, Creative Sandwich, Young Chef, Tea Challenge, tapas/finger food, and Iced Mocktail.

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