The Ministry of Finance and Planning has reported a marked improvement in the Maldives’ fiscal position, crediting robust tourism revenues, particularly from resorts and ongoing government reforms for the turnaround. According to the latest figures, total revenue and grants rose by 10.6 percent to USD 2.32 billion through early December, compared with USD 2.09 billion during the same period in 2024. At the same time, disciplined expenditure management brought total spending down by 12.5 percent to USD 2.43 billion. Together, higher income and restrained outlays produced a sharp 84.1 percent reduction in the budget deficit, which narrowed from USD 674.45 million last year to USD 110.25 million this year.
Tax receipts increased by 9.3 percent to USD 1.74 billion, with the resort-driven tourism sector playing a decisive role. Tourism-related Goods and Services Tax (GST), which accounts for roughly two-thirds of total GST collections, rose by 13.9 percent to USD 635.54 million. This reflects both the continued expansion of the tourism industry and the increase in the tourism GST rate from 16 to 17 percent implemented in July. Resorts across the country have benefited from sustained visitor demand, higher per-guest spending, and strengthening air connectivity, supporting premium room rates and longer stays. Many properties have focused on curated experiences, wellness packages, and family-oriented offerings, which have helped maintain strong booking pipelines even during traditionally quieter periods, reinforcing the sector’s contribution to state revenue.
General GST collections also improved, climbing 8.2 percent to USD 324.25 million, underscoring the wider spillover effects of tourism on the domestic economy. Activity generated by resort operations, ranging from local supply contracts and transport services to excursions and cultural experiences, continues to stimulate growth in supporting industries. Non-tax revenue recorded an even stronger performance, increasing by 19.7 percent to USD 564.20 million, largely driven by higher property income. This reflects the growing value and utilisation of state-owned assets, including those linked indirectly to tourism development in prime locations.
The government has also used the favourable revenue environment, supported by the resilience of the resort sector, to strengthen financial buffers. Deposits into the Sovereign Development Fund surged by 87.9 percent to USD 155.64 million, signalling a focus on building reserves and enhancing long-term economic resilience. For investors and operators in the Maldives’ resort industry, the latest fiscal update sends a positive signal: strong and stable tourism inflows are not only underpinning healthy resort performance, but also reinforcing macroeconomic stability. This alignment between resort-sector growth and improved public finances is expected to support continued investment in high-end tourism products, infrastructure, and sustainability initiatives, positioning Maldivian resorts to remain competitive in the global luxury travel market.
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