The quarterly business survey conducted by Maldives Monetary Authority (MMA) shows the tourism sector performance had worsened in Q3 compared to Q2 due to the off-peak season in Maldives.
Total revenues fell by 67 percent and resort bookings fell by 35 percent in Q3.
However, the situation is expected to improve in Q4 with the commencement of the peak season in Maldives. MMA projects total revenues to increase by 87 percent and resort bookings to increase by 69 percent in Q4.
The tourist peak season in Maldives is from November to April and is marked by a steep increase in bookings and revenues.
The Maldivian administration has announced it plans to reach 1.5 million tourist arrivals this year. Several new resorts have opened up in Maldives in preparation for the peak season.
The tourist business which took part in the survey highlighted competition within the sector and cost of labor as the most significant factors limiting their business growth. Additional factors limiting business growth includes shortage of both skilled and local labor, cost of finance, and insufficient demand.
MMA’s quarterly business survey is prepared based on records collected from major operations in key Maldivian industries to obtain a quick assessment of current business trends and expected future economic activity.
The survey for Q3 was conducted from September 25 to October 3. 176 major businesses were sent questionnaires for the survey, but only 99 participated.