Revenue dropped by MVR 3 billion despite higher tourist arrivals

Income generated in the past eight months by tourist arrivals lower by USD 200 million (MVR 3 billion) than the income generated in the same period in 2022.

Data released by central bank Maldives Monetary Authority (MMA) shows Maldives generated USD 2.5 billion (MVR 39 billion) from GST, green tax, airport development fee, tourism tax, and duty free business transactions from tourists in the first eight months of this year.

However, this is USD 200 million (MVR 3 billion) less than that for the same period last year, which is five percent less than the revenue generated last year. For the same period, Maldives was able to generate USD 2.7 billion (MVR 42 billion) last year.

During the same period last year, one million tourists arrived in the country, while 1.2 million tourists arrived in the Maldives this year within the first eight months.

Despite the increase in tourists and the increase in GST to 16 per cent over the previous year, one of the reasons for the decline in revenue from tourists is the steep fall in room prices in resorts and guest houses, industry insiders said.

The duration spent by and occupancy rate of tourists in the country have also come down from last year. This year, the country's occupancy has dropped below 50 percent in four months, while in the previous year, occupancy rate was lower than 50 percent in three months only. Tourists spend an average of 7.6 days in the Maldives till September of this year. In contrast, tourists spent an average of 8.1 days in the Maldives during the same period last year.

The highest revenue from tourists came in February this year with a total of USD 460 million (MVR 7 billion). That's USD 78 million (MVR1.2 billion) less than the same month last year. In February 2022, Maldives received USD 537 million (MVR 8.3 billion) from tourists

At the end of last year, Maldives received USD 3 billion (MVR 46 billion) from tourists. Flight movement has increased by five percent this year as compared to last year. The number of flights scheduled has also gone up to 1,200 this year.