Maldives Must Diversify Beyond Tourism, Says Economic Minister
Minister highlights need for new economic sectors
Economic Minister Mohamed Saeed has said the Maldives cannot rely solely on tourism if it aims to take its economy to a higher level, stressing the need to expand into new sectors, particularly the digital economy.
Speaking at the launch of PayPal services in the Maldives on Monday, Saeed said tourism remains the country’s main source of income and continues to grow. However, he noted that long-term economic growth requires diversification beyond the tourism sector.
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As part of the government’s economic diversification strategy, Saeed said efforts are underway to ensure that the digital sector contributes 15 per cent of the Maldives’ gross domestic product by 2030. He also announced plans to introduce additional digital tools for young people and establish a modern creator hub before the government completes three years in office.
PayPal, a global digital payment platform, was officially launched in the Maldives through a partnership with Ooredoo Fintech. The platform allows individuals and businesses to send, receive and manage payments online and is widely used for international transactions and e-commerce activities.
Saeed reiterated that tourism alone cannot sustain the country’s future economic ambitions, despite remaining one of the Maldives’ largest income-generating industries. He noted that the ongoing conflict in the Middle East has contributed to a five per cent decline in tourist arrivals.
According to figures released by the Ministry of Tourism on Monday, 994,901 tourists have visited the Maldives so far this year. The country requires a further 5,099 arrivals to reach the one million mark. During the same period last year, tourist arrivals had already exceeded one million.
The decline in visitor numbers has affected the tourism industry and reduced foreign currency earnings, highlighting the vulnerability of the economy to external factors and reinforcing the government’s push to develop alternative sources of growth.
