Tourism, construction industries expected to perform better in 2020

The tourism and construction sector is expected to perform even better in the first quarter of the current year compared to the final quarter of 2019, Maldives Monetary Authority (MMA) has predicted.

According to the Quarterly Business Survey conducted by the central bank, an increase was recorded in both the volume of construction activity, and the volume of orders received in the fourth quarter compared with the previous quarter.

The report said the construction sector is expected to improve during the current 2020 quarter when compared with the fourth quarter of 2019 by about 10%. It further noted credit and cost of finance, as well as cost of raw materials and delays in payment as significant factors limiting the sector's business growth.

With the onset of the tourist high season, majority of respondents in the tourism secctor indicated an increase in total revenue and resort bookings in the fourth quarter of 2019 when compared to the previous quarter. While an increase of 60% was recorded in resort bookings in the last quarter, revenue increased by 96%. A further increase of over 60% is expected in both revenue and resort bookings during the current quarter.

The business survey for the fourth quarter of 2019 was conducred from 25 December 2019 to 7 January 2020. Survey forms were sent out to 149 large construction, tourism, and wholesale and retail trade sectors.