Tourist arrivals for this year are no longer expected to reach initial projections: Zareer

Minister of Finance Hassan Zareer has stated that tourist arrivals for 2026 are no longer projected to reach previously estimated levels.

Minister Zareer made these remarks while presenting the proposed budget for the upcoming year to the People’s Majlis. He noted that tourist arrivals in January and February of this year had exceeded initial projections. However, the Minister highlighted that by the end of the first quarter, the outbreak of a major war had caused significant disruptions to global trade and travel.

Minister Zareer stated that rising global oil prices led to higher airfares, prompting airlines to reduce their flight frequencies. He further noted that these developments had a direct impact on the Maldives' tourism industry.

Disruptions at Middle Eastern transit hubs have negatively impacted tourist arrivals from Europe, leading to a significant decline in visitors to the Maldives. Consequently, arrival figures for March and April saw a 23 percent decrease compared to the same period in 2023. Furthermore, total tourist arrivals as of October 27 this year have recorded a 3.7 percent decline compared to the corresponding period last year.

Hassan Zareer

Minister Zareer stated that although current projections do not foresee tourist arrivals reaching 2026 targets, it is estimated that by the end of this year, the Maldives will see arrival numbers close to the total recorded in 2025.

Minister Zareer stated that despite these economic impacts, the nation's economic resilience remains robust. He further noted that even with a decline in tourist arrivals, state revenue is projected to meet the initial estimates for this year.

Furthermore, Minister Zareer stated that the most significant challenge faced during this period was the rise in state expenditure, noting that global oil price hikes had led to an overall increase in the cost of goods.