The Maldives’ journey from having no tourism at all to becoming a world-renowned luxury travel destination spans just over five decades. What began in 1972 with a single makeshift resort has transformed into the Maldives’ biggest economic engine, driving investment, infrastructure development, and international acclaim. This report chronicles key milestones in the Maldivian tourism sector from its inception through 2025, highlighting major expansions, policy shifts, economic impacts, and the dramatic rise, fall, and revival around the COVID-19 pandemic.
1972 – The Birth of Maldivian Tourism
Tourism in the Maldives officially began in October 1972 with the opening of Kurumba Village (now Kurumba Maldives) on the island of Vihamanaafushi. This 30-room resort, co-founded by local pioneers with the help of an Italian travel agent, marked the country’s first step into global tourism. At the time, the Maldives lacked basic infrastructure like banks, telephones, or proper transport; even a United Nations mission in the 1960s had deemed the islands unsuitable for tourism. Nevertheless, Kurumba’s debut was a success, staying fully booked for months, and was soon followed by a second resort, Bandos Island, opened by then-President Ibrahim Nasir. These two modest resorts, offering about 280 beds combined, welcomed the first wave of adventurous tourists drawn to the Maldives’ natural beauty. By the end of the 1970s, tourism was already flourishing under President Nasir’s vision to modernize and diversify the economy, setting the stage for rapid growth in the decades ahead.
1980s – Expansion and Rising Prominence
The 1980s saw a tourism boom that firmly established the industry as the dominant force in the Maldivian economy. During the rule of President Maumoon Abdul Gayoom (1978–2008), political stability and pro-development policies spurred the expansion of resorts across different atolls. The “one-island, one-resort” concept, each resort occupying its own island became a unique hallmark of Maldivian tourism, offering privacy and luxury in untouched tropical settings. International visitor numbers climbed steadily each year, and by the end of the 1980s the once unknown Indian Ocean nation had begun earning a reputation as an exclusive beach paradise. Foreign exchange earnings from tourism started to eclipse the traditional fishing industry, and tourism quickly became the single largest contributor to GDP and employment. Key infrastructure developments kept pace: the capital’s airport, Hulhulé Island Airport (today Velana International Airport), which had opened a new runway in 1966, was upgraded to handle growing traffic. By 1987, over 62 resorts were in operation (up from just 2 in 1972), and annual tourist arrivals had crossed well above 100,000. This foundational decade firmly entrenched tourism as the lifeblood of the Maldives’ economy and set in motion a cycle of continuous growth.
1990s – Diversification and Policy Shifts
As the Maldives entered the 1990s, the tourism sector diversified and matured. The government’s economic liberalization policies in 1989 opened the door to more foreign investment, leading to new resort developments and international hotel brands entering the market. By 1992, tourism had definitively overtaken fishing as the country’s top earner, with dozens of resorts now operating across multiple atolls. Mid-range resorts and liveaboard safari cruises emerged alongside high-end properties, broadening the Maldives’ appeal beyond elite travelers. The Maldives also began international marketing efforts to position itself as a premier honeymoon and diving destination. Tourist arrivals grew at an average clip of around 10% annually through the 1990s, fueling a doubling of GDP per capita during that decade.
Government policy in this era focused on sustainable expansion. A Tourism Master Plan was implemented to guide development, balancing growth with environmental conservation. Resort islands were leased to investors under strict regulations to protect the fragile coral reefs and marine ecosystem that attracted visitors. The country’s first environment-protected areas and dive sites were designated, reflecting a growing awareness that tourism and conservation must go hand in hand. Towards the late 1990s, tourist arrivals topped half a million per year, an impressive feat for a nation of just 300,000 people, and the Maldives had firmly cemented its place on the global tourism map.
2000s – Tourism Transforms the Economy
The first decade of the 2000s was marked by both remarkable growth and significant challenges for Maldivian tourism. The number of resorts continued to climb steadily – increasing from 49 resorts in 2000 to around 92 resorts by 2007. By 2008, there were 89 resorts offering over 17,000 beds and hosting more than 600,000 tourists annually. Tourism had become the backbone of the economy, directly accounting for roughly 28% of GDP and over 60% of foreign exchange earnings. More than 90% of government tax revenue was coming from import duties and tourism-related taxes, underlining the industry’s central role. Investment trends in this period showed an influx of international hotel chains and investors: global brands like Four Seasons, Hilton (Conrad), and Taj Resorts established properties, often via joint ventures with local partners. This era also saw heavy local investment by Maldivian companies (such as Universal Enterprises and Villa Group) that expanded their resort portfolios, reflecting confidence in the sector’s profitability.
Key policy changes shaped tourism’s evolution. In 2004, the Maldivian government suffered a major setback when the Indian Ocean tsunami struck: the disaster forced 21 resorts to temporarily close and caused damage equivalent to 62% of GDP. Tourist arrivals plunged 35% in 2005, but the industry’s resilience showed as arrivals rebounded by over 50% the very next year. The recovery was aided by quick rebuilding efforts and global marketing campaigns reassuring travelers. Another milestone came in 2008 with the country’s first democratic elections, ushering in a new government that soon implemented reforms in the tourism sector. Notably, independent travel was liberalized in 2009, when regulations were changed to officially allow tourists to stay on inhabited local islands. This gave rise to a new guesthouse segment; locally-run guesthouses and small hotels began popping up, especially in budget-friendly atolls, opening the tourism economy to local communities and backpacker travelers for the first time. By the end of the 2000s, Maldives tourism was not only a luxury resort business – it had expanded to include mid-range options and more local involvement, all while continuing its strong growth trajectory.
2010s – A Decade of Records and Upgrades
The 2010s were a banner decade for Maldives tourism, characterized by record-breaking arrivals, massive infrastructure projects, and market diversification. Tourist arrivals surpassed the 1 million mark for the first time in 2013, driven in part by a surge of visitors from Asia – especially China, which by the mid-2010s became the single largest source market. In 2016, the country welcomed about 1.5 million tourists, up from 1.2 million just a year earlier. This explosive growth continued: in 2019, over 1.7 million visitors came to the Maldives, an all-time high up to that point. China, India, and traditional European markets (Germany, UK, Italy) dominated visitor numbers, reflecting the Maldives’ global appeal to both East and West.
To accommodate and encourage this growth, the 2010s saw unprecedented infrastructure development focused on tourism. The Malé International Airport (rebranded as Velana International Airport) underwent extensive upgrades including a new runway inaugurated in 2018, capable of handling large aircraft and boosting capacity toward 7.5 million passengers per year. A new state-of-the-art international terminal was launched to expand airport handling ability, and dozens of new domestic airports were built across outer atolls to improve connectivity to far-flung resorts. By late 2018, the Maldives had 130 resorts in operation with at least 20 more under development, including investments by world-renowned hotel brands such as Waldorf Astoria, Mövenpick, Pullman, and Hard Rock. The country also opened the China-Maldives Friendship Bridge (Sinamalé Bridge) in 2018, linking the capital Malé with the airport island, making transfers for tourists quicker and easier. Additionally, the Maldives’ seaplane fleet became the largest in the world – Trans Maldivian Airways and other operators shuttled guests in seaplanes from the main airport to dozens of resort islands daily, a critical network for the dispersed tourism geography.
Equally important were policy initiatives and trends in this decade. The government introduced a Tourism Goods and Services Tax (TGST) and later a “Green Tax” on tourists to generate revenue for sustainable development. The promotion of eco-friendly practices grew, with many resorts adopting solar power and reef conservation programs in response to climate change vulnerabilities. The guesthouse industry also boomed: by 2019, nearly 600 registered guesthouses were operating on inhabited islands, offering an alternative for budget travelers and injecting tourism income directly into local communities. As the Maldives celebrated continuous tourism growth year after year, the stage was set for the golden jubilee of the industry in 2022 – but first it would face an unprecedented global shock.
2020 – COVID-19 Brings Tourism to a Halt
In March 2020, the COVID-19 pandemic abruptly shut down the Maldives’ tourism lifeline. The government closed its borders on 27 March 2020, forcing resorts and guesthouses to suspend operations and evacuate guests. For over three months, the tropical paradise known for its busy international airport and full resorts saw empty beaches and silent arrival halls. The impact on the economy was immediate and severe: tourist arrivals, which had been on pace for another record in early 2020, plummeted to essentially zero during the closure. For the full year 2020, arrivals fell by over 67%, totaling roughly 555,000 (down from 1.7 million in 2019). Hotel occupancy rates dropped by more than 50% compared to pre-crisis levels. The tourism-dependent economy contracted sharply as foreign currency inflows dried up, demonstrating the downside of over-reliance on a single sector. Government revenue dwindled, leading authorities to defer resort lease payments and roll out emergency stimulus for businesses. Thousands of tourism workers were furloughed or faced pay cuts, though the government and industry worked together to retain as many jobs as possible until visitors could return.
Amid the hardship, the Maldives also leveraged its unique advantages to plan a safe restart. Owing to the one-island-one-resort setup, resorts could naturally isolate guests and implement stringent health protocols. In July 2020, the Maldives became one of the first countries in the region to reopen borders to international tourism. Resorts reopened with new safety certifications, requiring on-site testing, reduced capacity, and “bubble” arrangements to keep tourists and staff safe. These early reopening efforts, combined with global pent-up travel demand for secluded, outdoor destinations, positioned the Maldives as an attractive option even during the pandemic. By late 2020, a trickle of tourists – mainly from nearby markets with fewer travel restrictions – began arriving, initiating a gradual recovery.
2021–2025 – Recovery, Resilience and New Trends
The tourism recovery gained momentum through 2021 and beyond. After the border reopening, monthly arrivals climbed steadily. In 2021, the Maldives welcomed over 1.3 million tourists, comfortably exceeding its initial target of one million and signaling a strong rebound. By October 2021, arrivals had already crossed the one-million mark for the year. This was a remarkable turnaround driven by aggressive marketing and the perception of the Maldives as a safe, open destination. Notably, the tourist demographics shifted: with China’s outbound travelers absent due to their country’s restrictions, India surged to become the top source of visitors in 2020–21, followed by Russia and key European markets. Industry data showed Chinese arrivals dropped nearly 88% in 2020, while India and Russia’s share jumped, a trend that continued into 2021. The Maldives capitalized on these changes by courting emerging markets in Eastern Europe, the Middle East, and South Asia to fill the gap. Half of the Maldives’ guests in early 2022, for example, came from Eastern Europe and the rest from Western Europe and the GCC (Gulf countries), according to resort operators.
By 2022 – which marked the 50th anniversary of Maldivian tourism – visitor numbers were nearly back to pre-pandemic highs. Approximately 1.68 million tourists visited in 2022, a testament to the successful recovery efforts. Tourism revenue for 2022 was estimated around $4.5 billion USD, reflecting about 68% of the Maldives’ GDP that year. The golden jubilee year saw nationwide celebrations: October 3, 2022 (the anniversary of Kurumba’s opening) was declared a public holiday to honor five decades of tourism. By the end of 2023, the Maldives had actually surpassed its 2019 record – welcoming roughly 1.9 million visitors – and in 2024 the country crossed the 2 million arrivals milestone for the first time. This swift rebound underscored the resilience of the sector and its adaptive strategies.
Tourism in the post-pandemic period also saw new trends and investments emerge. The government and industry launched the world’s first national-level loyalty program, “Maldives Border Miles,” in late 2020 to encourage repeat visits with tiered rewards for frequent travelers. Resorts adjusted to evolving preferences by offering longer stay packages, remote-work amenities, and exclusive buyout deals for groups seeking privacy. Several new resorts opened their doors in 2021–2023 despite the pandemic, including high-profile developments like Patina Maldives and Ritz-Carlton Maldives at the Fari Islands, signaling investor confidence. Sustainability took on even greater importance: with climate change in focus, many properties adopted carbon-neutral goals and coral regeneration projects to protect the very environment that tourism relies upon. Government policy continues to support the industry’s growth – from expanding airport capacity to introducing flexible visas – while also emphasizing diversification to avoid economic over-dependence on tourism alone.
As of 2025, Maldives tourism is not only back it’s breaking new records. The sector remains dynamic, with a renewed emphasis on sustainability and diversification to ensure long-term resilience. In an ever-changing global tourism landscape, the Maldives’ blend of innovation, natural beauty, and adaptability continues to keep its economy buoyant and its islands at the top of travelers’ bucket lists worldwide.
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