The Maldives, a destination long synonymous with luxury, is experiencing a transformation. In 2023, the country celebrated a record-breaking year for tourist arrivals, surpassing 1.88 million visitors for the first time in its history. This monumental growth reflects a significant shift in the Maldives’ tourism landscape, moving from an exclusive retreat for the elite to a more accessible paradise for budget-conscious travelers.
According to the latest data from the Mastercard Economics Institute, this surge in tourism is reshaping various sectors, particularly accommodations, restaurants, and retail businesses, which are adapting to cater to a broader range of travelers.
Affordable Maldives: A Growing Trend
The most notable trend emerging from this tourism boom is the rise of affordable accommodations. Since 2019, the Maldives has seen a remarkable increase in lower-cost lodging options, with the number of affordable hotels surpassing the traditionally dominant luxury resorts. Year-over-year data highlights that guesthouse occupancy rates have surged by 40%, while the overall quantity of affordable hotels has grown by 25%.
Mastercard’s aggregated and anonymized transaction data shows that more than 35% of tourists visiting the Maldives in 2024 (year to date) actively sought budget-friendly accommodation. With increased competition and a diverse array of accommodation choices spread across various islands, travelers are exploring new, less-crowded destinations rather than sticking to the capital, Malé.
The Economic Impact: Thrifty Tourists, Thriving Towns
The shift towards affordability has not only impacted accommodations but also significantly benefited local businesses outside the luxury resort sphere. Budget-conscious travelers are more inclined to explore the islands and spend in local restaurants and shops, giving a much-needed boost to small businesses and local economies.
As tourists increasingly opt to spend their time and money at off-resort locations, the Maldives has seen a rise in in-person spending at retail outlets and dining establishments. Mastercard’s data reveals that retail and restaurant sectors have witnessed substantial growth in consumer spending, compared to the same period in 2023.
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Insights from Mastercard
These developments indicate that the Maldives is evolving into a destination with wider appeal, offering experiences for both luxury seekers and budget travelers. The diversification of accommodation options and the growth in local tourism spending are shaping a new chapter for the Maldives, where the once-exclusive destination is becoming accessible to a broader global audience.
To dive deeper into these insights and understand the broader implications for your business, speak with the Mastercard Economics Institute.
About Mastercard Economics Institute
The Mastercard Economics Institute provides actionable insights through the analysis of aggregated and anonymized transaction data across various industries and sectors. With a global perspective and deep expertise in economic trends, Mastercard offers businesses invaluable data to understand market dynamics and consumer behavior.
