MVR 59.7B budget: Targets to increase tourist arrivals, national reserve by USD 100M

The MVR 59.7 billion state budget proposed today for the upcoming year sets ambitious targets to increase tourist arrivals and bolster the national reserve by USD 100 million.

Presenting the budget to the Parliament, Finance Minister Hassan Zareer stated that by the end of 2026, the Maldives is expected to welcome 2.17 million tourists, with bed nights reaching 13.9 million. Highlighting 2027 as a pivotal year for the tourism sector, the Minister projected that arrivals would grow to between 2.28 million and 2.5 million, with bed nights increasing to 14.5 million.

Regarding the national official reserves, Zareer estimated that the figures would stand at USD 817.7 million by the end of 2026, further rising to an estimated USD 907.2 million in 2027.

The Minister noted that following the economic growth achieved in 2025, tourist arrivals reached record levels in December 2025, with strong performance continuing through January and February of the current year. However, he characterized a major conflict that erupted at the end of the first quarter as the third significant "shock" to Maldivian public finance in the last decade.

"This conflict disrupted global trade and travel. Oil prices in the global market soared, leading to higher airfares and a reduction in airline frequencies. This directly impacted the tourism sector, which is the backbone of our economy," Zareer explained.

As a result, transit hubs in the Middle East for European travelers were affected, negatively impacting arrival numbers. The Minister noted that arrivals in March and April saw a 23 percent decline compared to the same period in 2025. Furthermore, as of last Tuesday, total arrivals for the year were down by 3.6 percent compared to the corresponding period last year.

Despite the current challenges in meeting original arrival targets for this year, Zameer expressed optimism that total arrivals by year-end would remain close to the figures recorded in 2025.

"Despite these economic impacts, our economic resilience remains strong. I am pleased to note that even with the current situation, we anticipate that state revenue will meet the projected levels for this year," the Minister said.