All business activities low in second quarter: MMA

Businesses in all sectors of the Maldives reported a decrease in the second quarter of this year, revealed Maldives Monetary Authority (MMA)'s quarterly business survey.

The survey, which was carried out from 25th June to 11th July 2024, was participated by 118 businesses across tourism, wholesale/retail businesses as well as transport and construction sectors.

In light of this drop, employment levels also plummeted for businesses in the tourism and construction sectors, with the tourism sector registering the biggest decline.

"Meanwhile business in the wholesale and retail trade sector and the transportation and communication sector indicated a notable increase in new hires during the review quarter," the report reads.

Quarter two, falling within the off peak season which lasts from May to July, also saw a decrease in room occupancy in the tourism sector, the report said. 97 percent of the survey's respondents highlighted this. Overall, this caused a 99 percent dip in the sector's revenue.

While businesses in the tourism industry suffered this blow, the number of inbound tourists also decreased during the quarter two period. However, the rate has slowly started to pick up in July.

Businesses in the tourism sector are also less pessimistic regarding prospects for the upcoming quarter of the year and expect activity to improve albeit at a slower pace, the results show.

"Meanwhile, business sentiments for the construction sector and wholesale and retail trade sector were observed to be mixed, based on the key indicators for the respective sectors. However, the transportation and communication sector turned optimistic about prospects of business growth going forward," the report also highlighted.