The revenue collected by resorts around the Maldives fell sharply in 2023, recording a decrease of USD 529 million in the previous year.
The revenue collected by resorts around the Maldives fell sharply in 2023, recording a decrease of USD 529 million in the previous year.
In a report published by Maldives Association of Tourism Industry (MATI), statistics from the past year saw resorts in Maldives acquire USD 3.9 billion (MVR 60 billion) as revenue by resorts. This is a decrease from the value reported for 2022, which was USD 4.4 billion (MVR 68 billion).
This decrease in revenue collected by resorts comes at a time where the whole tourism sector failed to generate as much value as previous years, with 2023 closing out on a decrease of USD 406 million (MVR 6.3 million) in revenue collected by resorts. Last year, the entire tourism sector was recorded to have generated about USD 5 billion in revenue, which is less than the USD 5.4 billion in revenue generated in 2022.
- Total Revenue: USD 5 billion
- Resort Revenue: USD 3.9 billion
- TGST on Resorts: USD 481 million
- Decreased Revenue from Resorts: USD 529 million
Revenue generated at resorts across the Maldives account for 85 percent of taxes collected by the government from the tourism sector. Last year, the State accumulated USD 481 million from resorts in TGST alone, and 90 percent of all green tax collected is from resorts. Resorts have generated USD 61 million in tax revenue for the government over the past year.
With global conflicts taking center stage in the new year, tourism revenue has been on a steady decline, and the occupancy rate in Maldives' resorts are also decreasing with each passing year. Last year, 1.7 million tourists visited the Maldives from different parts of the world.
According to the World Bank, the decline in tourism revenue observed in Maldives is due to a shift in demand from resorts to guesthouses. The World Bank also projects that this might have negative impacts and cause a decline in productivity for the country.
The incumbent government aims to attract 2 million tourists to the Maldives in 2024, an effort that will be supported by the opening of a new terminal at Velana International Airport at the end of the year, introducing the capacity to accommodate more travelers with more ease. The World Bank estimates that the new terminal will boost tourism revenue and productivity next year.
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