Coldwell Banker Richard Ellis (CBRE), a commercial real estate services and investment firm, has reported that investors’ interest in the Maldives is on the rise, mainly due to the increasing number of tourist arrivals in the country. The CBRE noted that the Maldives has been identified as a high-end tourism destination that offers potentially stronger returns on investments for those investing in hotel businesses. The Maldives’ Foreign Direct Investment (FDI) policy amendment in 2020 has further increased the destination’s demand among global investors. Moreover, the country’s fast recovery in the tourism industry after the Covid-19 pandemic and its priority towards environmental preservation, sustainable tourism, and investor safety make it an attractive prospect for investors.

According to the CBRE, investors have shown more interest in the Maldives compared to one of the most popular international tourism destinations in the Asian continent, Bali, Indonesia. CBRE’s Head of Residential Sales, Praphinleeya Phuengkhuankhan, stated that the Maldives is becoming a widely popular destination among financiers due to its unique geographical landscape. She further claimed that global investors are mainly interested in investing in globally renowned brands in the resort industry and individual villas in tourist resorts, which carry over seven percent in returns.

The Maldivian tourism industry has observed an overall 20 percent growth over the past year, with an annual visitor target of 1.8 million for 2023. The reopening of the Chinese tourism market may further boost the figure up to 2 million. The Ministry of Tourism projects a 15 percent increase in the annual tourist arrival projection, with the average guest stay increasing from six days during the last four years to eight days this year.

While the Maldives is more popularly known as a honeymoon destination, the number of tourist properties catering to families has increased in recent years, attracting affluent families. This increase in the diversity of traveler segments has also created new investment opportunities in the country. The Maldives’ priority towards environmental preservation, sustainable tourism, and investor safety, coupled with its unique geographical landscape, has positioned the country as an attractive prospect for investors seeking prospective opportunities.