MMA Reveals Decline Across Maldivian Business Sectors

The Maldives Monetary Authority’s (MMA) quarterly business survey has revealed a decrease in business activity across all sectors in the Maldives during the second quarter of this year. 

Conducted between 25th June and 11th July 2024, the survey included 118 businesses from the tourism, wholesale/retail, transport, and construction sectors.

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The decline in business activity was accompanied by a significant drop in employment levels, particularly in the tourism and construction sectors, with the tourism sector experiencing the most substantial decline.

However, the wholesale and retail trade sector, along with the transportation and communication sector, reported a notable increase in new hires during this period.

The second quarter, which coincides with the off-peak season from May to July, saw a decrease in room occupancy in the tourism sector, as highlighted by 97 percent of survey respondents. This downturn resulted in a 99 percent dip in the sector’s revenue.

The number of inbound tourists also declined during the second quarter but has shown signs of gradual recovery since July. Despite the challenges, businesses in the tourism sector are less pessimistic about the prospects for the upcoming quarter, expecting activity to improve, albeit at a slower pace.

Sentiments in the construction sector and the wholesale and retail trade sector were mixed, based on key indicators. In contrast, the transportation and communication sector expressed optimism about future business growth.

The survey underscores the varied impacts of the off-peak season on different sectors and highlights the cautious optimism among businesses as they look ahead to the coming months.