Budget Tourism Boom Fuels Record-Breaking Visitor Numbers

A new report by the Mastercard Economics Institute has highlighted a significant shift in the Maldives’ tourism sector, with a notable rise in budget-conscious travellers. In 2023, tourist arrivals reached an unprecedented 1.88 million, marking a milestone as the Maldives transitions from a luxury-exclusive destination to one that is more accessible to a broader range of visitors.

Since 2019, budget-friendly hotels have been growing at a faster rate than high-end luxury resorts, reflecting an increasing demand for more affordable travel options. During the first half of 2024, 35% of tourists opted for budget accommodations, particularly guesthouses, which maintained high occupancy rates throughout the year. Around 40% of guesthouses were fully booked for most of the year, demonstrating the popularity of this sector.

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The report also noted a shift in traveller preferences, with many now choosing quieter, less crowded islands over traditional hotspots like Malé. This trend offers visitors a more peaceful experience while benefiting the economies of smaller, less developed islands.

Budget-conscious tourists are also contributing to the economy beyond the resort industry, with increased spending in local restaurants and retail outlets. This has provided a boost to businesses outside the luxury market, ensuring that the benefits of tourism are more widely distributed across communities and smaller businesses.

The Mastercard Economics Institute’s report was based on aggregated and anonymised transaction data, revealing the Maldives’ growing appeal as a destination that caters not only to luxury travellers but also to those seeking more affordable experiences.