The government’s cross-subsidy policy, which offers incentives for investment in infrastructure projects, was revised to hand over islands, land or lagoons for tourism after an initial payment of US$1 million. Full payment of a project’s funding was previously required.
The change was made after the infrastructure ministry signed financing agreements with four companies to build new domestic airports. The bid announcement was made for the third time last August after the minimum financing amount was reduced from US$5 million to US$3 million. A dozen contractor financing proposals were submitted.
New airports are to be developed on Haa Dhaal Makunudhoo, Shaviyani Bilehfahi, Baa Thulhaadhoo, Thaa Vilufushi, Faafu Magoodhoo and a location to be decided upon in south Raa Atoll.
Earlier this month, the government invited expressions of interest or proposals to develop a residential city in the Giraavaru lagoon near Malé. A minimum financing requirement was set at US$5 million.
An ‘Economic Research Centre’ was launched with the support of UNDP Maldives “to mainstream the use of data and innovative tools to address complex developmental challenges in the Maldives.”
A research paper on ‘Labour Market Dynamics in Post-Pandemic Times’ was released at the launching ceremony as the “first knowledge product jointly developed with UNDP.”
Foundation was laid for the construction of 100 housing units in Laamu Gan.
The MVR84 million (US$5.4 million) project was awarded to SJ Construction in May to be completed within one year.
After concluding its annual consultation, the International Monetary Fund commended “decisive policy measures” that supported a rapid recovery from the pandemic but warned that the Maldives remains at a “high risk of external debt distress.”
The IMF projected GDP growth of 6.6% for 2023 driven by tourism. Inflation was expected to reach 4.9% “reflecting the persistence of high costs of energy and food, spending pressures for the 2023 elections, and the one-off impact of the planned goods and services tax hikes in 2023.” Despite high government revenues, the budget deficit was expected to remain in double digits due to infrastructure projects, debt servicing costs, a high public sector wage bill, and financial support to inefficient and loss-making state-owned enterprises.
Targeting food and electricity subsidies to the most vulnerable was among measures recommended to address fiscal and external vulnerabilities. Downside risks to the outlook included “a sharp slowdown in key source markets for tourism, high commodity prices, and tighter global financial conditions.”
The Maldives welcomed the 1.6 millionth tourist of the year, achieving the government’s optimistic target for 2022 with a week to spare.
Tourist arrivals reached 1.5 million by mid-December, a whopping 28% increase from last year and only -2.1% below pre-pandemic levels. Arrivals in November were 6.5% higher than the same month in 2019.
India remains the top market with 224,640 tourists as of 14 December, representing a 14% market share, followed by Russia (189,586 tourists), the UK (168,123 tourists), Germany (126,866 tourists) and Italy (87,218 tourists).
The average duration of stay is down from 8.7 days in 2021 to 8 days this year. There are 166 resorts, 158 safari vessels and 875 hotels and guesthouses in operation across the country with a combined bed capacity of 59,715.
The Maldives tourism industry continues its robust recovery despite the impact of Russia’s invasion of Ukraine – which caused arrivals to plummet from the top market – and the complete absence of Chinese holidaymakers, who accounted for the largest source market before the pandemic.
The State Trading Organisation celebrated its 58th anniversary. Special one-day sales were launched in the STO People’s Choice supermarket, the Makita Showroom, STO Construction, and regional outlets.
The Alif Alif Thoddoo council became the first island council to register a Local Authority Company.
At the registration ceremony, the economic development minister “noted the importance of empowering councils to establish local authority companies to catalyse economic opportunities in local communities. This is a mechanism to bear risks to develop sustainable solutions tailor-made for the community’s needs.”
The council plans to provide services such as waste management, sale of agricultural equipment and maintenance of tourist beaches and parks through the new company.
The list of single-use plastics banned for import, production and sale was republished upon ratification of the new waste management law. The items banned with effect on 19 December are:
- straws
- plates
- cutleries
- stirrers
- Styrofoam boxes
- cotton buds with plastic stems
- plastic bottles below 500ml (carbonated and non-carbonated drinks except water)
- plastic water bottles below 500ml
- toiletries in bottles below 50ml
- drinking cups below 250ml
- sweet areca nuts in plastic packing (supari)
- shopping bags smaller than 30 by 30cm
The sale of plastic shopping bags below 50-micron thickness as well as shampoo, conditioner, soap and lotion bottles from 50 to 250ml will be banned on 1 March 2023. The local production and use of plastic water bottles below 1 litre will be banned on 1 March 2024.
The Maldives Ports Limited commenced its annual ‘Port Safety Week’ at the Malé Commercial Harbour, “a week of safety related activities, is aimed at promoting safety culture and safety awareness in all areas of operations conducted by MPL.”
The activities included a safety workshop, free health screening for port workers, a road safety and traffic awareness session, self-defence training. a health and safety forum, a fire and rescue drill, and a clean-up of the Malé port and Hulhumalé international terminal.
