Tourist arrivals in May reached a new record for the month, surpassing the pre-pandemic record of 103,022 tourists in May 2019.
104,046 holidaymakers arrived by 25 May, up 86.5% from the same period last year. Total arrivals of 680,846 so far this year is up 53% from 2021 but falls short of pre-pandemic levels by -6.8%. India is the top market followed by the United Kingdom, Russia, Germany and Italy.
Maldives State Shipping announced plans to start direct cargo service between the Maldives and Singapore and Port Kelang in Malaysia. The service is expected to begin in July after the arrival of the newly acquired MSS Graphene.
Finance Minister Ibrahim Ameer sought to assuage fears that the Maldives could face an economic crisis similar to neighbouring Sri Lanka. The minister met the press after U.S. investment bank JPMorgan placed the Maldives among eight countries at risk of foreign currency reserve depletion by the end of 2023. The Maldives was classified as carrying high repayment risk in the bank’s assessment.
But the Maldives does not face any difficulty in managing debt or any danger of a sovereign default, Ameer assured. Tourists arrivals were approaching pre-pandemic levels and strong GDP growth between 13% to 18% is expected, he said.
President Ibrahim Mohamed Solih repeated the assurance in his remarks at a function to mark the Malé Water and Sewerage Company’s 27th anniversary.
But both conceded that the Maldives will not be spared the impact of the war in Ukraine. The government expects higher outlays on imports, rising inflation and a fourfold increase in fuel subsidies.
In April, the World Bank warned that debt refinancing risks were looming in the medium term with payments of US$600 million due in 2026.
The government has scrapped plans to decrease resort lease rents, Finance Minister Ibrahim Ameer revealed. The president decided to withdraw changes proposed to the tourism law to reduce the annual tourism land rent.
The bill was accepted by parliament last month. Lower amounts were proposed for resort islands in northern and southern atolls to incentivise development outside the central region. But it was drafted before the war in Ukraine, which prompted reconsideration in light of changed global conditions, Ameer said.
On Monday, the central bank governor warned parliament’s economic committee that it would be “unwise” to lose income amid supply side shocks and disruptions caused by the war. The tax authority estimated a loss of MVR590 million (US$38 million) in revenue.
The plans also drew criticism in the wake of revelations that 12 resorts owed MVR665 million in unpaid rent and fines.
The Housing Development Corporation invited expressions of interest to develop 549 mid-range and high-end apartments in Hulhumalé.
The Maldives Ports Ltd officially launched use of the Oracle Fusion Cloud. The Enterprise Resource Management System “will streamline and automate the company’s back-office operations, improve business scalability and operational efficiency,” according to MPL.
The Bank of Maldives introduced contactless payment services and wallet-to-wallet transfer services on its upgraded mobile banking app. The new ‘scan to pay,’ ‘tap to pay,’ and ‘mobile key-in’ functions allow customers to make payments without using a physical card.
