The expansion of Velana International Airport (VIA) is expected to spark a new wave of economic progress, with the World Bank forecasting a real GDP growth of 5.7 percent in 2025, fueled largely by the tourism sector’s strong performance.
According to the World Bank’s latest “Maldives Development Update: Seeking Stability in Turbulent Times,” the completion of the new terminal at VIA, anticipated by mid-2025, is set to enhance the country’s capacity to welcome a greater number of international visitors. This modern facility will be capable of accommodating over seven million passengers annually, a major leap from the current terminal’s capacity of 1.5 million passengers. The Maldives welcomed more than two million tourists last year, underscoring the urgent need for expanded infrastructure to meet growing demand.
The new terminal, spanning 78,000 square meters, will feature state-of-the-art amenities aimed at delivering a seamless travel experience. The government targets October this year to bring the terminal into operation, a step expected to play a vital role in sustaining the Maldives’ impressive economic momentum.
The World Bank’s update highlights that medium-term growth projections have been revised upward compared to previous estimates, thanks to the resilience and expansion of the tourism sector. Following the projected 5.7 percent growth in 2025, the economy is expected to maintain steady progress, with growth of 5.3 percent in 2026 and 4.7 percent in 2027.
Tourism, which directly accounts for about a quarter of the Maldivian economy, continues to be a strong pillar of national growth. In the first quarter of 2024 alone, the economy expanded by 9.8 percent year-on-year, mainly driven by a 9.3 percent rise in tourism activity. This upswing has also invigorated related industries, such as transportation, communications, and domestic trade.
Visitor numbers from key markets like China, Russia, and Europe, along with emerging new markets, have contributed to this growth, reinforcing the Maldives’ status as a top-tier global holiday destination.
The World Bank also notes that while the Maldives has introduced several fiscal reforms in 2024 including revisions to the Tourism Goods and Services Tax (TGST), Departure Tax (DPT), Airport Development Fee (ADF), and Green Tax, the country must continue efforts toward efficient expenditure management to strengthen its fiscal stability.
The upcoming expansion of Velana International Airport not only meets immediate needs but also lays a strong foundation for future economic resilience. By providing a world-class gateway for travelers, the Maldives is set to enhance its tourism appeal even further, inviting visitors from all corners of the globe to experience its renowned natural beauty and hospitality.
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