Business

Owing to tourism, Fitch assigns Maldives B+ rating with stable outlook

Published

9 years ago

May 16, 2017

Fitch Ratings has assigned the Maldives a first time Long Term Foreign and Local Currency Issuer Default Ratings (IDRs) at B+ with a stable outlook, largely owing to the country’s resilient tourism industry.

In an statement, the leading global credit rating agency said Monday that the country ceiling for the Maldives is assigned at BB- and the Short Term Foreign and Local Currency IDRs at B.

Fitch said the ratings balance the Maldives’ advanced economic development, strong GDP growth and high government revenue generated by a prosperous tourism sector against a high government debt burden and low foreign reserve buffers.

The Maldives’ success as a prime luxury tourist destination has generated relatively high GDP per capita of USD 9,145 (B category median is USD 3,362), Fitch said, adding that real GDP growth is expected to pick up to four percent in 2017 and 4.5 percent in 2018 from 3.9 percent in 2016 due to continued tourism demand and construction. It noted the development of new resorts and the large infrastructure projects initiated by the government, including capacity expansion of the main airport, the construction of a bridge linking the capital to population centres, an advanced medical centre and new housing units.

“The government’s ability and propensity to tax the luxury tourism sector has led to a revenue ratio of 34.9 percent of GDP, significantly higher than the B median of 24.7 percent. There is still potential to further increase the amount of revenue raised from tourism if needed, given the likelihood of rather inelastic demand in the luxury segment to moderate price rises. Government revenue forms an important link between tourism and other sectors of the economy,” the statement read.

However, Fitch warned that high dependence on tourism makes the economy vulnerable to sudden events that harm the perception of Maldives as a safe and reliable tourist destination, including the emergence of political instability in an already-polarised environment or security issues.

“The country’s high dependence on a single sector causes volatility in economic metrics, such as GDP growth, and makes the country vulnerable to external shocks and domestic developments that undermine the Maldives’ attractiveness as a tourist destination; for example, changes in perceptions of safety,” the statement read.

The agency also cautioned that execution of many large infrastructure projects at the same time has posed serious fiscal challenges. Foreign debt financing of the large construction projects will increase the importance of foreign-reserve buffers in the years ahead, it said.

“The risks to external balances from the low reserve base are mitigated by the persistent current account deficits being fully financed by foreign direct investment and by the tourism sector both earning and spending in US dollars. This implies that tourism-related outflows should also fall in the case of a sudden drop in tourism-related inflows,” the statement read.

“In addition, the country has managed with similarly low levels of foreign-exchange reserves for a number of years without experiencing an exchange rate shock.”

Dredging of the satellite town of Hulhumale, a major project undertaken by the government. PHOTO/ HDC

Fitch highlighted the new measures included in this year’s state budget to increase revenue and to cut expenditure to make fiscal space for the projects underway, saying that the remedial action should significantly lower the deficit to 4.3 percent of GDP in 2017 and 3.8 percent in 2018. However, it said the official target of reducing the fiscal deficit from the government’s estimate of 7.4 percent of GDP in 2016 to 0.5 percent in 2017 is highly ambitious.

“On the basis of the government’s announced measures and Fitch’s nominal GDP forecast, the agency expects general government debt/GDP to fall gradually from 72.3 percent in 2017 to 70 percent in 2020. At the same time, risks to debt sustainability remain and the stabilisation of debt, assumed by Fitch, depends on the government’s willingness and ability to follow through on its fiscal consolidation plan,” the statement read.

Fitch highlighted a few main factors that could lead to negative rating action:

A significant rise in general government debt; for instance, caused by a failure of the government’s fiscal consolidation strategy.
Balance of payment pressures; for instance, a fall in foreign exchange reserves or a higher than Fitch expected increase in external debt.

Fitch also highlighted a few main factors that could lead to positive rating action:

Policy initiatives that lower general government debt to levels closer to the rating category median.
Strengthening of external buffers through accumulation of foreign-exchange reserves.
Diversification of the economy by developing sectors other than tourism; for example, facilitated by implementing structural reforms that enhance the business environment.

Fitch’s first ever credit rating for the Maldives is in line with a similar rating assigned by Moody’s Investors Service in September of B2 with a stable outlook. In the first ever sovereign credit rating of the Maldives, Moody’s also noted the Maldives’ healthy GDP growth prospects driven by the tourism sector, while raising concerns over relatively low institutional and fiscal strength and moderate susceptibility to event risk.

Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in accordance with the terms on which they invested.

Majority of foreign investments come into the tourism sector. Several foreign investors are developing resorts in the Maldives with many more expected to come this year as well.

With several foreign investments in tourism, Maldives has maintained its lead in performance of tourist properties amongst Indian Ocean destinations. A recent report by industry-leading global real estate services company Colliers International has shown that the Maldives has a significant lead on rival Indian Ocean destinations such as Mauritius, Seychelles and Zanzibar in almost every performance indicator, including occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR).

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Business

Feydhoo Hall opens at dusitD2 Feydhoo Maldives as new event space

Published

3 weeks ago

February 16, 2026

m@ldives

Dusit International, one of Thailand’s leading hotel and property development companies, has announced the opening of Feydhoo Hall, a landmark event venue at dusitD2 Feydhoo Maldives, redefining the possibilities for meetings, celebrations, and destination events in the Maldives.

Designed to bring scale, flexibility, and creativity to island gatherings, Feydhoo Hall represents a bold step forward in positioning the Maldives as a dynamic destination for conferences, weddings, and large-scale social occasions.

Feydhoo Hall offers a versatile event complex designed to accommodate a wide range of gatherings, from corporate meetings and conferences to weddings and social celebrations.

At its core is the 390 sqm Main Hall, capable of hosting:

Up to 300 guests in theatre-style setup
Up to 240 guests for dining and banquet-style events
Up to 200 guests for cocktail-style receptions
Up to 144 guests in cluster-round configuration

Enhancing the flexibility of the venue are additional dedicated spaces, including:

A 110 sqm Veranda Terrace, ideal for welcome receptions, breakout sessions, and pre-event gatherings, accommodating up to 100 guests for cocktail-style events.
A spacious 1,000 sqm Lawn Space, perfect for large-scale outdoor celebrations, destination weddings, and open-air events, accommodating up to 400 guests for cocktail receptions and up to 350 guests for dining setups.
The 55 sqm Ekugai Meeting Room, designed for smaller meetings and executive sessions, accommodating up to 30 guests in theatre or dining setup and 24 guests in cluster-round format.

Together, these integrated spaces create a seamless indoor-outdoor event experience, allowing planners to design dynamic and personalised event journeys.

True to the dusitD2 brand’s lifestyle-driven philosophy, Feydhoo Hall introduces a fresh approach to meetings and events — where productivity meets creativity in an inspiring island setting.

The venue offers flexible meeting formats designed to suit different event needs, including:

Half-Day Meeting Package (4 hours) — ideal for focused sessions, executive meetings, and creative workshops.
Full-Day Meeting Package (8 hours) — designed for immersive conferences, extended workshops, and large-scale corporate gatherings.

These thoughtfully structured packages provide planners with the flexibility to create impactful and seamless experiences, whether hosting intimate strategy sessions or dynamic full-day events.

Located just seven minutes by speedboat from Velana International Airport, dusitD2 Feydhoo Maldives combines accessibility with vibrant lifestyle energy, offering event planners and guests a rare balance between convenience and tropical escape.

With the introduction of Feydhoo Hall, the resort strengthens its position as a versatile destination — not only for leisure travellers but also for international conferences, creative retreats, luxury weddings, and large-scale social celebrations seeking something refreshingly different in the Maldives.

Business

BBM expands retail presence with new Hulhumalé outlet

Published

3 weeks ago

February 16, 2026

m@ldives

Bestbuy Maldives (BBM) opened a new wholesale store in Hulhumalé Phase 2 on Monday.

The outlet is located on the ground floor of Lot 20286, Nirolhu Magu, and is intended to improve access to BBM’s imported goods for residents of Hulhumalé Phase 2 and for businesses operating in the area.

According to the company, the opening forms part of its plan to expand services closer to customers in line with population growth in Hulhumalé.

With the opening of the new store, BBM’s full range of imported and distributed products will be available at the Hulhumalé Phase 2 location. These include consumer goods from international brands such as Lifebuoy, Vaseline and Unilever.

The store will also stock wholesale food products from brands including Daily, Cavin’s and Redman.

BBM has supplied goods to resorts, hotels and retail outlets across the Maldives for several years.

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

Published

1 month ago

January 29, 2026

m@ldives

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.