The total amount of loans taken through banks for tourism purposes has reached MVR 12 billion.
Statistics from the Maldives' central bank, the Maldives Monetary Authority (MMA), show that until January, businesses had borrowed up to MVR 32 billion from various financial institutions in the country. Thirty-five percent of the money was borrowed by businesses in the tourism industry.
The tourism sector is one of the biggest sources of revenue for the Maldives every year. The country has welcomed over 350,000 tourists so far this year. Approximately 41,000 of the 60,000 beds available for tourists are within resorts.
The money loaned to the tourism sector increased by 75 percent over the past five years. Loans to the tourism sector stood at MVR 8.5 million in 2018. The increase in borrowing over this period is reflected in the increased bed capacity as well. Over this period, the Maldives had added an extra 20,000 beds available to tourists.
Aside from the tourism sector, the most loans were given to the construction sector. Loans worth MVR 7 billion have been sanctioned to businesses in this sector. Real estate businesses are in third place in this ranking, with a total of MVR 3 billion borrowed.
Of all businesses, the smallest loans were taken out by farmers. They borrowed only MVR 6 million until January.
Additionally, private parties had also borrowed money worth MVR 5 billion over the year.
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