Country Report Maldives April 2022

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. On March 13th the government revoked the public health emergency protocol that had been in place for almost two years since the start of the pandemic, further easing rules related to covid-19 tests and quarantine requirements for international arrivals. Tourists arriving into the country are now no longer required to present a negative covid-19 test and will continue to be offered a 30-day visa on arrival. The government is also relying on rapid booster dose programmes to maintain immunity levels of resort employees and the local population. These initiatives are likely to be welcomed by tourists, the majority of whom are from high-income groups.

With the withdrawal of the public health emergency, the government's policy focus will gradually return to other matters that had been put on the back burner amid the pandemic. It will now look to roll out its planned reform measures under the Strategic Action Plan 2019-23, which include tackling corruption and human-rights abuse that had spread under the previous administration. Reforms to the judiciary to reduce its tendency of intervening in the country's political struggles will also be on the government's agenda, although progress is likely to be slow as attention turns to looming elections.

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