Country Report Maldives October 2021

Outlook for 2022-23: Policy trends

The tourism sector, along with the services ecosystem, is the main driver of the Maldivian economy. Reliance on tourism earnings left the county especially vulnerable to the Covid-19 pandemic. The government's efforts in 2022-23 will remain focused on bolstering activity in the sector. This will involve marketing the country as a safe holiday destination, owing to its "one island, one resort" set up and widespread vaccination. The government will continue to offer a 30-day visa on arrival, with no mandatory quarantine upon presentation of a negative Covid-19 test, and is planning to include vaccination as an option in its tourism offering in 2022, to encourage extended stays at the country's resorts. These initiatives are likely to be welcomed by tourists, the majority of whom are from high-income groups.

Other matters will be put on the back burner amid the factional split in the ruling party. The tussle over changing the system of governance will continue in 2022-23, putting any further reform measures under the Strategic Action Plan 2019-23 on hold and widening the split within the MDP further.

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