Fisheries falls to 1.3 percent of GDP

The fisheries industry in the Maldives has performed extremely badly to become only 1.3 percent of Gross Domestic Product (GDP).

The biggest contributor to GDP is tourism industry, with 32 percent. Contribution from fisheries industry is estimated to fall from 1.3 to 1.1 percent within the year.

President of Maldives Association of Construction Industries (MACI) Mohamed Ali Janah said that the second biggest contributor to GDP so far this year is the construction industry.

“It gives us great pleasure, that the construction industry is the biggest contributor to the economy after the tourism industry. The construction industry is now at second place on the list,” Janah said.

Statistics for this year show that construction sector contributes eight percent to GDP. This figure has not changed since 2007. Planning statistics show that fish export so far this year has been $11,374 - this is a 33 percent reduction compared with the same period last year.

Referring to the fragile state of the fisheries industry, Chairman of Island Aviation Bandhu Ibrahim Saleem, who has several years of experience in the fisheries sector, said that subsequent to the tsunami, fisheries picked up considerably. If efforts can be increased now, the same results can be achieved, and to do this, fishermen have to be provided subsidies and other incentives to increase fishing.

“Fisheries improved following the tsunami. Why can’t it be improved now? It is a problem if fisheries decline in performance as tourism progresses. Fishermen have to be encouraged to go fishing by giving them subsidies. They need assistance, especially in terms of fuel and such things,” Saleem said.

He added that “it is extremely dangerous for the economy to be dependent on one industry”.

This year’s budget statement estimates that fisheries declined by seven percent last year. While fisheries contributed Rf251m to real GDP in 2010, the amount for 2011 was about Rf231m.

Statistics show that fishing has declined in the Maldives since 2006.