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The Maldives has experienced impressive growth in the number of affordable accommodation options, which are up 54% since 2019 — ten years after the government lifted its ban on guesthouses in 2009.


In 2023, the Maldives experienced a record-breaking year of tourist arrivals, surpassing 1.88 million people for the first time ever.1 Guesthouses experienced a growth of more than 40% year over year (yoy) in occupancy rates, according to data published by the Maldives Ministry of Tourism. However, during the same period the occupancy rate for resorts contracted by 4%.2 The shift toward guesthouses reflects a broader trend in tourism from high-end resorts toward lower-cost accommodation.3

A surge in demand from travelers globally has led to an increase in the number of available hotels, illustrated in the chart below based on their affordability according to Mastercard aggregated & anonymized transaction data. When indexed to the same month in 2019, the number of relatively more affordable hotels (illustrated by the orange line below) has increased by about 20%–25% yoy and surpassed the stock of high-end options (yellow line).

With rising competition and a diverse range of choices across various islands, tourists are increasingly moving away from traditionally popular destinations like the capital Malé in favor of quieter, less crowded places. This trend is becoming more common in the global tourism industry.

More than 35% of travelers to the Maldives were on the lookout for budget accommodation options in the first half of 2024.

This shift in the composition of hotels has driven a shift in the types of consumers that arrive and how they spend. Compared to luxury-seeing consumers, the most budget-conscious consumers tend to spend more at locations outside their resorts, including on groceries and dining, according to Mastercard aggregated & anonymized transaction data. Much of this newfound tourist mobility comes from the Mastercard-supported upgrade of the country’s public transportation network to accept contactless card payments.

With more budget-conscious travelers in the Maldives, inbound tourist spending at general merchandise and duty-free stores has increased by over 85% yoy in the first half of 2024.

Sectors other than accommodation have greatly benefited from this surge in budget-conscious travelers. Restaurants and retail stores are seeing more tourist footfall as tourists find more opportunities to spend on experiences outside their resorts.

Dining, apparel, jewelry and other retail stores have all outpaced the growth of the accommodation sector in first half of 2024.

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Mastercard Economics Institute launched in 2020 to analyze macroeconomic trends through the lens of the consumer. A team of economists, analysts and data scientists draws on Mastercard insights - including Mastercard SpendingPulse™ - and third-party data to deliver regular reporting on economic issues for key customers, partners and policymakers.

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  1. Monthly visitor arrivals data, Ministry of Tourism, Republic of Maldives↩︎

  2. Monthly occupancy rates by establishment type, Ministry of Tourism, Republic of Maldives↩︎

  3. A guesthouse is a type of accommodation that offers a more affordable and locally integrated experience than a luxury resort that owns an entire island↩︎