Country Report Maldives July 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 ill-effects of the covid-19 pandemic. The government has focused its efforts on bolstering activity in the sector in 2022 and is expected to retain this policy focus in 2023. This will involve marketing the country as a safe holiday destination, owing to its "one island, one resort" set up and widespread vaccination. Since March 2022 tourists arriving in the country are 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.

The government's policy focus will return to other matters that had been put on the back-burner amid the pandemic. In the months ahead it will seek to roll out its planned reform measures under the Strategic Action Plan 2019-23, which include tackling corruption and human-rights abuses, which had increased under the previous administration. Reforms to the judiciary to reduce its tendency to intervene 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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