Tourism is the largest economic industry in the Maldives, as it plays an important role in earning foreign exchange revenues and employing 25,000 people in the tertiary sector of the country. The archipelago of the Maldives is the main source of attraction to many tourists visiting the island country. Chinese entrepreneurs have been swiftly amassing assets connected to the tourism sector in the Maldives. Given that tourism is the primary economic driver in the Maldives, this trend is affording the Chinese substantial influence over the nation's economy.[1]
The tourism industry is especially vulnerable to climate change: as one of the island nations expected to be most impacted by climate change, sea level rise and subsequent increased extreme weather, coastal flooding, and coral bleaching damage the natural attractions that bring many of the tourists to the country.
President Ibrahim Nasir is credited for having started tourism in the Maldives in 1972 in order to diversify the economy and help in his vision of modernizing the Maldives.[2] A United Nations mission on development which visited the Maldives Islands in the 1960s did not recommend tourism, claiming that the islands were not suitable. Ever since the launch of the first resort in Maldives in 1972, however, tourism in Maldives has flourished. The arrival of the first tourist's group is estimated to have occurred in February 1972. Tourism in Maldives started with just two resorts with a capacity of about 280 beds. Kurumba Island Resort is the first resort opened in Maldives, followed by Bandos Island Resort which was developed and opened by Ibrahim Nasir, Nasir also personally set up the first tourist agency known as "Crescent Tourist Agency".[3] At present, there are over 132 resorts located in the different atolls constituting the Republic of Maldives. Over the decades, the number of tourists in Maldives is rising continuously. In 2009, local island guesthouses started popping up in the Maldives. This was thanks to a change in regulations that began to officially allow tourists to stay among the local population, rather than just on privately owned resort islands. In 2015, a total of 1.2 million tourists visited the Maldives, and another 1.5 million visited in 2016.[4] In 2018, the Maldives operated 130 island-resorts. Current work is being undertaken to boost tourism room capacity by constructing another 23 properties, which will include foreign developers such as the Waldorf Astoria, Mövenpick, Pullman and the Hard Rock Café Hotel. Extensive upgrades at the Velana International Airport will allow for 7.5 million visitors by early 2019 or 2020.[5]
Tourism in the Maldives has started in 1972 with only two hotels, now – there are more than 100 operational resorts. The unique condition of Maldives is that one island is one resort, meaning that one hotel occupies the whole island. By doing so, resorts provide more privacy and more luxury for their visitors. The Maldives are also trying to stay eco-friendly and use more of solar energy rather than diesel. The Maldives provide facilities and services, entertainment and telecommunication services, they also provide numerous resorts, hotels, guest houses, and liveboards.[6] [7]
A tourist resort in the Maldives typically consists of a hotel on its own island, with its population entirely made up of tourists and work force, with no local people or houses. China has established a presence in nearly every facet of the Maldivian government, tourism industry, and economy, spanning both the private and public sectors.[8]
Most visitors arriving to the Maldives on short term basis, were from the following countries of nationality:[9] [10] [11] [12] [13]
| 284,029 | 283,116 | 306,530 | 324,326 | 359,514 | 363,626 | 331,719 | 229,550 | 198,655 | ||
| 166,030 | 90,474 | 83,019 | 66,955 | 52,368 | 45,587 | 38,014 | 31,721 | 30,978 | ||
| 136,343 | 105,297 | 88,848 | 71,202 | 65,616 | 57,862 | 57,854 | 62,782 | 83,328 | ||
| 131,561 | 117,532 | 112,109 | 106,381 | 105,132 | 98,328 | 93,598 | 98,351 | 90,517 | ||
| 126,199 | 114,602 | 103,977 | 101,843 | 92,775 | 88,704 | 85,869 | 91,776 | 104,508 | ||
| 83,369 | 70,935 | 61,931 | 46,522 | 44,323 | 66,308 | 76,479 | 66,378 | 63,936 | ||
| 59,738 | 50,476 | 42,365 | 40,487 | 42,024 | 50,656 | 54,328 | 56,775 | 59,694 | ||
| 54,474 | 42,901 | 39,180 | 32,589 | 29,308 | 25,641 | 20,034 | 16,049 | 14,490 | ||
| 44,251 | 42,304 | 41,133 | 39,894 | 39,244 | 38,817 | 39,463 | 36,438 | 35,782 | ||
| 39,928 | 37,254 | 27,360 | N/A | N/A | N/A | N/A | N/A | N/A | ||
| Total | 1,702,887 | 1,484,274 | 1,389,542 | 1,286,135 | 1,234,248 | 1,204,857 | 1,125,202 | 958,027 | 931,333 |
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See main article: Climate change in the Maldives. The Maldives' economy is greatly influenced by any climate changes. Tourism sector can be damaged by the increased likelihood of violent storms, damage to coral reefs, and beach erosion, which are now more likely to happen because of the rising seas.
As a consequence of climate change, Maldives is now facing the problem of rising seas and coral reefs bleaching. According to the World Bank, with "future sea levels projected to increase in the range of 10 to 100 centimeters by the year 2100, the entire country could be submerged." New government has made a decision to fight the rising seas problem with geoengineering projects instead of trying to move the population. The idea is to rent out other islands and even build new islands, so the population of those islands who are more in trouble could be relocated. One of those built islands is Hulhumale'.[14]
It has been also pointed out that some islands can grow naturally.[15]
World Bank states that, "Rising sea temperatures also threaten the coral reefs and cause bleaching and death, with the most severe damage in areas that are stressed by pollutants, or damaged by physical disturbance. Vulnerability to climate change hazards has been magnified by damage to coral reefs which has in turn impaired their protective function, thus a negative cycle of impact."[16]
On 24 May 2021, Maldives had the world's fastest-growing COVID-19 outbreak, with the highest number of infections per thousand people over the prior 7 and 14 days, according to data compiled by Bloomberg.[17] Doctors warned that increasing demand for COVID-19 care could hinder their ability to handle other health emergencies in the Maldives.[18]
There is some promotion of ecotourism in the Maldives, with resorts emphasizing recycling of heat that is wasted in producing electricity and stricter policies of waste disposal.[19]
Nevertheless, the Maldives have frequently come under criticism for their lack of protection of the local shark populations, which have sharply decreased after being hunted extensively for decades. In some areas, sharks have entirely disappeared. Sharks are hunted primarily for their fins. Shark fins are exported from the Maldives to other countries in Asia, where they are regarded as a delicacy. The fins are amputated from the live animals, which are then thrown back alive into the sea. Although this practice is prohibited by law in the Maldives, these laws are not respected or enforced by the local authorities.[20]
In 2001, a local environmental organization called Seamarc/Marine savers (known onsite as Reefscapers), set up an ambitious program of reimplantation of coral in damaged areas, on the basis of resort sponsorship.[21]
The Maldives' tourism industry is the country's largest revenue generator.[22] Due to their underwater scenery and clean water, the Maldives is ranked among the best recreational diving destinations of the world,[23] with over 60 local dive sites across the islands.[24] It was also reported to be the world's most desired honeymoon destination, according to a global survey by Agoda.com.[25]
The level of crime in the Maldives is high and not safe for women . Knife crime in populated areas, like the capital Male, has increased. Tourists should also follow local advice on if there is any danger with swimming. Some piracy and armed robbery attacks have also occurred in the area of Gulf of Aden and Horn of Africa. A threat of terrorism is possible; the targets can include: government buildings, schools, places of worship, airports, public places, etc.[26]
On 5 February 2018, the government declared a state of emergency due to the increased protests and aggressive clashes with the police in Malé. Those demonstrations are advised to be avoided.[27]
On 18 June 2023, a Chinese national took to Twitter to share a harrowing incident she encountered during her stay at Maldives’ luxurious Ritz-Carlton resort. In her long Twitter thread, the 26-year-old Chinese tourist accused a resort staff named Usham of sexual assault. She also accused the resort management and the Maldivian police of hushing the matter and taking no coercive steps to investigate her case.The victim, a Chinese national currently pursuing her studies in Australia, in a long Twitter thread wrote that she had reached Maldives on the 6th of June and was scheduled to return to China on the 10th but she decided to extend her stay and checked into the Ritz Carlton Fari Island resort, unaware of the horror that would befall her. Ritz-Carlton Fari Island Resort, owned by The Ritz-Carlton Hotel Company and a subsidiary of Marriott International, high-end resort known for its pristine beaches and world-class hospitality.[28]