In keeping with the recent history of the country, tourism and tourism-related economic activity have accounted for the greater contribution towards the islands’ economic performance. Economic growth continues to maintain a tight correlation with tourism growth. The complete recovery of this industry, led by arrivals from India, Russia, the UK, and Europe, respectively, is set to ensure the economy remains on a steady growth path in 2024 and beyond. The Maldives is expected to further consolidate its position as the leader in the region with the highest GDP per capita.
The pandemic and subsequent lockdowns, which represented the most severe external shock in recent history, certainly cast a dark shadow of uncertainty back in 2020. However, the resilience and speed of recovery demonstrated during the initial period of stifled global travel were remarkable. According to some commentators, the geophysical landscape of the archipelago made it the ideal location for safe holidays with minimum contact. Tour groups and families could literally isolate themselves from the world on petite and exclusive islands that also offered some of the best five-star services to be found anywhere in the world. This, together with sensible political leadership during the crisis period, has ensured that the Maldives successfully navigated the storm and emerged with positive growth rates in 2021, 2022, and 2023 (based on provisional forecasts).