As a renowned tourist destination, aviation significantly contributes to the economy of the Maldives. There are several methods of measuring the impact of air transport on an economy, and the two key indicators are the number of employment opportunities and its contribution to Gross Domestic Product (GDP).

As per IATA, 4,900 individuals are directly employed in the aviation sector and contribute USD 222.2 million, equivalent to 3.4% of the nation’s GDP. Taking supply chain activities into account, employee spending, and tourism, aviation generates USD 4.7 billion in GDP and 212,200 jobs. Tourism linked to aviation contributes USD 4.2 billion to GDP and 199,000 jobs, while international visitors add an estimated USD 4.4 billion annually through domestic spending.

The aviation industry provides extensive social benefits, promoting education, cultural exchange, and socio-economic development. Additionally, the industry significantly contributes to the UN Sustainable Development Goals (SDGs). Throughout the past 5 decades, the cost of international flights has dropped by 70%, increasing accessibility. Between the years 2013 and 2023, airfares declined by 45% in the Maldives, with residents needing an average of 5.8 days’ income to purchase a ticket. In 2023, Maldives recorded 7,781 flights per 1,000 people.

Air transport also drives global trade and investment, enhances productivity while supporting innovation and resource efficiency. In 2023, 41,800 tonnes of air cargo moved through Maldivian airports, contributing significantly to the nation’s import and export activities. A robust aviation network significantly enhances lives by offering seamless connectivity for people in different cities, making the world smaller and promoting cultural diversity. Air transport plays a crucial role in providing access to healthcare, education and other necessities to rural and remote areas.

In 2023, 58% of Maldives’ origin-destination departures were international, making it a total of 2.3 million passenger departures. Asia Pacific is the largest international market for passenger flows from the Maldives with almost 1.0 million passengers having departed from the Maldives to another country in Asia Pacific. While 889,100 passengers departed to Europe and 355,200 to the Middle East.

Crucial for economic growth, air connectivity fosters dynamic business activity across the country. Since 2014, the international air connectivity index for the Maldives decreased by 17.1% within Asia Pacific but increased by 177% with other regions.  

Source: IATA Economic Reports

Featured Image Credits: Maldives Airports Company Limited (MACL)