Maldives economy improves despite tourism slide

  • Tourism goes down by 1%
  • Fish exports decrease
  • Increase in construction

While the tourism in Maldives has suffered a slight decline this year, the Maldivian GDP has seen a 6.8% increase, Maldivian Monetary Authority (MMA) statistics have shown.

The Quarterly Economic Bulletin, the report issued by MMA for each quarter shows that the Maldivian GDP has risen by 6.8% in the third quarter of this year. Statistics show that this increase was caused by a rise in domestic demand.

The construction industry has seen the largest growth this year. While noting that the 'mega projects' had given a huge boost to the industry, the MMA said that imports by the construction industry has increased by 13%, the loans given out for construction purposes has seen a 29% increase as well.

Statistics show that the tourism industry, which shoulders 21% of the Maldivian economy, has seen a 1% decline. MMA reports that the first two quarters had seen tourism decrease, however the third quarter saw a 5% increase in the amount of tourist arrivals. The report shows that this is a larger increase than predicted by the world tourism organisation, UNWTO.

The beds capacity in the tourism industry has risen by 4%, and the occupancy rate had been maintained at a healthy 67% as well. While the resort pricing had been reduced, the general income had seen a 3% increase.

The report shows that the fishing industry has suffered a slight decline as well. The export of fish had declined by 32% in the third quarter. However, the amount of fish bought by companies had seen an 8% increase.

The wholesale and retail trade had seen a boost as well, with the bank loans given for this sector increasing by 24% throughout the year. The private sector had an increase in import by 15% this year as well.