Case study: The Maldives

Reasons for the growth of tourism in The Maldives

Reasons for the growth of tourism in The Maldives

• Tourism has transformed the Maldives into a global economic success story

  • This has lifted thousands of people out of poverty and providing vital infrastructure

• However, there are challenges and without careful management and stronger international support, the Maldives is at risk

Location and background

• The Maldives is an archipelago of around 1,192 coral islands grouped in 26 atolls, located in the Indian Ocean, southwest of India and Sri Lanka

• It is the lowest country in the world — the average ground level is just 1.5 metres above sea level

• The population is approximately 521,000 people

• The Maldives has a tropical climate with:

  • Warm temperatures

  • Large number of sunshine hours

  • Little seasonal variation

  • High humidity year-round

Growth of tourism

• Tourism began in 1972 with the opening of the first resort — Kurumba Village

• Since then, the Maldives has become one of the world’s most sought-after luxury beach destinations

• In 2023, over 1.8 million international visitors arrived (source: Maldives Ministry of Tourism)

• The sector contributes around 28% of GDP and generates over 60% of foreign exchange earnings

• Tourism provides employment for approximately 60,000 Maldivians — about one third of the workforce

Attractions for tourists

Natural attractions:

• Stunning white-sand beaches

• Crystal-clear lagoons

• The extensive coral reefs serve as world-renowned sites for scuba diving and snorkelling

• The region boasts a unique marine biodiversity, home to species such as manta rays, whale sharks, and sea turtles

Human attractions:

• The Maldives is home to luxurious overwater villas

• There are also exclusive private island resorts available

• There are also spas and wellness retreats available

• Crafts, dance, and cuisine showcase the traditional Maldivian culture

Benefits of tourism in The Maldives

Benefits of tourism in The Maldives

Economic:

• Tourism is the Maldives' main source of income

• Provides direct and indirect employment

• Stimulates related industries: fishing, construction, transport, agriculture

• Funds improvements in national infrastructure (airports, electricity, sanitation)

Social:

• Improved education and healthcare partly financed by tourism revenue

• Global awareness of Maldivian culture has increased

• Cultural norms limit the opportunities for female employment in the hospitality sector

Environmental:

• Tourism has raised awareness of the importance of marine conservation

• Many resorts invest in reef restoration and waste management initiatives

Problems of tourism in The Maldives

Problems of tourism in The Maldives

Economic:

• Over-reliance on a single industry — highly vulnerable to global shocks (e.g. the COVID-19 pandemic led to an 80% drop in tourist arrivals in 2020)

• High degree of economic leakage — many resorts are foreign-owned, and profits often leave the country

Social:

• Rapid development has created social inequalities — rural communities benefit less than major resort areas

• Some cultural tensions between the values of Islamic Maldivians and Western tourists (e.g. alcohol consumption, beach attire)

• Migration to tourist hubs is causing population imbalances and stress on public services

Environmental:

• Coral reefs suffer from:

  • Tourist boats anchor there

  • Physical damage from divers and snorkellers

  • Coral bleaching is a result of rising sea temperatures

• Resorts and tourists contribute to pollution by generating waste and sewage

• High water and energy consumption from desalination plants leads to increased carbon emissions

• The construction of overwater structures harms fragile marine ecosystems

• Climate change poses a threat as rising sea levels may submerge much of the country this century

Strategies to sustainably manage tourism in The Maldives

Strategies to sustainably manage tourism in The Maldives

National strategies:

• Maldives Marketing and Public Relations Corporation (renamed Visit Maldives Corporation Limited in July 2025) promotes a 'high-value, low-impact' tourism model

• Establishment of marine protected areas and coral restoration projects

• The government is taking steps to cut down on single-use plastics and promote the use of renewable energy in resorts

Resort-level strategies:

• Some eco-resorts (e.g. Six Senses Laamu):

  • Use solar power

  • Operate on-site marine conservation programmes

  • Employ waste reduction and water recycling

• Many resorts run reef monitoring programs in partnership with scientists and NGOs

Individual strategies:

• Tourists are encouraged to:

  • Avoid touching corals or marine life

  • Support sustainable operators

  • Offset their carbon emissions from long-haul flights

Effectiveness of strategies

Successes:

• The Maldives is recognised globally for some of the most sustainable luxury tourism in the world

• Marine awareness among tourists is relatively high

• Some eco-resorts set international benchmarks

Limitations:

• Tourism numbers continue to grow — overall environmental pressure is increasing

• Enforcement of sustainability regulations is uneven across resorts

• Climate change remains the biggest threat — the Maldives may require global cooperation to survive in the long term

Applying the Butler Model to The Maldives

Applying the Butler Model to The Maldives

Stage 1 – Exploration

• Small groups of diving enthusiasts and marine researchers begin their exploration in the 1970s

• Limited infrastructure

Stage 2 – Involvement

• In 1972, the first tourist resort, Kurumba, opened in the Maldives. Locals provide accommodation and boat transport

Stage 3 – Development

• 1980s–1990s — government encourages foreign investment

• Major international hotel chains arrive

• Construction of Male International Airport increases accessibility

Stage 4 – Consolidation

• 2000s — mass tourism increases

• Each year, the number of tourists surpasses 1 million

• Luxury resorts dominate

• Environmental concerns, such as reef damage and freshwater depletion, are on the rise

Stage 5 – Stagnation

• Overcrowding in popular atolls is one of today's signs

• Growing awareness of coral bleaching, erosion, and pollution

Stage 6 – Rejuvenation

• Eco-tourism initiatives

• The development of eco-friendly resorts is underway

• Maldives aims to become a carbon-neutral destination

• There are controlled visitor numbers in fragile areas