Maldives welcomes 2 million tourists amid record-breaking growth

Maldives has achieved a remarkable milestone, welcoming 2 million tourists this year, a testament to its enduring appeal as one of the most sought-after luxury travel destinations in the world. As the high tourism season of winter approaches, Velana International Airport (VIA) is gearing up for its busiest period, with an incredible influx of visitors expected to arrive for the festive season.

During this period, the airport experiences unprecedented levels of traffic. Luxury tourists flying in by private jets become a common sight, while scheduled flights face overwhelming demand from tourists eager to celebrate the holidays in the Maldives. The destination is globally renowned for its luxurious resorts, which transform into hubs of extravagant celebrations during the festive season. Resorts like One&Only Reethi Rah, Waldorf Astoria Maldives Ithaafushi, The Ritz-Carlton Maldives, Fari Islands, and Velaa Private Island are particularly famous for their exclusive festivities. Fireworks displays over the ocean, a hallmark of these celebrations, have been organized by One&Only for several years, though it remains uncertain which resorts will feature such displays this year.

For travellers staying at top luxury resorts, the experience begins seamlessly at the airport. Avoiding the crowded terminals, these guests often book VIP services through travel agents, enabling them to bypass queues and proceed directly from their flights to exclusive lounges. While regular arrival processes during peak season can take over an hour, VIP guests typically have their passports stamped within 15 minutes. Checked-in baggage, however, can still cause delays as it must reach the belt before porters can retrieve it. VIP guests, meanwhile, enjoy a three-course meal in the comfort of the lounge. However, during the festive period, the demand for CIP/VIP services often exceeds availability. A reliable travel agent noted that many luxury travellers seek alternative ways to avoid queues, but during peak times like New Year’s, meeting all requests becomes challenging.

Adding to the high demand, Maldives Airports Company Limited (MACL) recently recorded its highest-ever flight movements, with 1,000 flights handled in a single day. This achievement underscores the growing popularity of the Maldives as a global tourist destination. To accommodate this surge in traffic, a new terminal at Velana International Airport is set to open next year, promising enhanced facilities and capacity for both regular and luxury travellers.

The government is also making strides to diversify and enhance the tourism experience. Plans to introduce helicopter services are underway, potentially offering tourists faster and more scenic transfers to their destinations. Additionally, recent changes to procedures for handling private jets aim to streamline operations and improve the overall experience for high-end travellers.

However, not all recent developments have been warmly received. A new departure tax introduced by the government has drawn attention from international media. CNN highlighted the tax’s impact, noting that departing from the Maldives has become significantly more expensive. Despite this, the overall growth in tourist arrivals remains robust, reflecting the resilience and appeal of the Maldivian tourism sector.

While inbound tourism continues to thrive, outbound tourism poses challenges for Maldivian travel agents due to complex tax procedures. Agents must pay taxes both in the Maldives and the destination country, significantly increasing costs. For instance, a local agent arranging a holiday for European tourists to visit Dubai faces double taxation, whereas a Dubai-based agent can offer more competitive pricing. This disparity places Maldivian travel agents at a disadvantage in the international tourism market.

Additionally, international organisations often categorize the Maldives as one of the most challenging countries to do business in. This raises questions about how the government can attract more foreign investment and what policy changes are needed to make the business environment more favourable. Streamlined processes, reduced bureaucracy, and incentives for investors could be key steps toward achieving this goal.

Recent changes to dollar exchange procedures have added another layer of complexity for businesses and travellers alike. While these measures aim to stabilise the economy, they can create hurdles for local businesses operating in the international market. Despite these challenges, the Maldives continues to see positive growth in its tourism sector, showcasing its ability to adapt and thrive in a competitive global landscape.

As the Maldives celebrates this significant milestone of 2 million tourists, it also faces the dual challenge of maintaining its status as a luxury destination while addressing structural issues that impact businesses and outbound tourism. By continuing to invest in infrastructure, streamline operations, and foster a more business-friendly environment, the Maldives is well-positioned to sustain and grow its tourism industry for years to come.

For more information about VIP services and travel arrangements in the Maldives, visit Priority Maldives.