Tourism & Hospitality
Providing audit, tax, advisory, and investment structuring solutions that help resorts, hotels, guesthouses, and foreign investors operate, grow, and stay compliant in the world's most attractive island tourism market.
Maldives' Defining Industry
The Maldives Tourism Landscape
Tourism is the lifeblood of the Maldivian economy. According to the World Bank's Maldives Development Update 2025, tourism directly contributes around 21% of GDP, and separately, the U.S. State Department's 2025 Investment Climate Statement notes the sector generates more than 60% of the country's foreign currency earnings. In 2025, the industry reached its strongest performance on record: 2.25 million international arrivals (2,246,516 visitors), a 9.8% year-on-year increase, generating an estimated USD 5.4 billion in tourism revenue. December alone set a new monthly record, underscoring the destination's year-round appeal.
Growth is being driven not just by volume but by value. High average daily rates, longer lengths of stay, and surging demand across the ultra-luxury segment are pushing revenue growth faster than arrival numbers alone suggest. The Maldives was named World's Leading Destination at the World Travel Awards for the sixth consecutive year running in 2025 a record no other destination has matched and also took the World's Leading Green Destination title for the second year in a row, drawing premium travellers from an increasingly diversified source market spanning China, Russia, the UK, Germany, India, and the USA.
The sector's regulatory and compliance environment is evolving just as quickly as its growth. Resorts, guesthouses, and liveaboards must comply with the Tourism Goods and Services Tax (T-GST), Green Tax, and Business Profit Tax (BPT), and MIRA continues to tighten enforcement of statutory audit and filing obligations. The T-GST rate increase effective 1 July 2025, together with sharper scrutiny of transfer pricing for international resort chains and management-contract arrangements, is raising the compliance bar for operators of every size creating steady demand for professional audit, tax, and advisory support.
Key industry figures at a glance:
- 1,200+ tourist facilities across resorts, liveaboards, guesthouses, and integrated hospitality groups
- 64,000+ operational beds, with resorts accounting for approximately 70% of total arrivals
- 44 scheduled airlines operating at Velana International Airport, connecting to 60+ destinations across 24 countries
- New Terminal 1 at Velana International Airport, opened in 2025, raising annual passenger capacity to over 7 million (up from 1.5 million)
Investing in Maldives Tourism
The Maldives is one of the most open and attractive destinations for foreign direct investment in tourism globally. Under the Foreign Investment Act (Law No. 11/2024), foreign investors may hold 100% ownership in resort and hospitality operations. Tourism is the only sector where a separate Foreign Investment Agreement is not required and the island land lease agreement with the Ministry of Tourism serves as the governing document. In 2025, the Ministry of Tourism and Environment opened public tendering for 14 new resort plots, including 11 large lagoon plots of 200 hectares each across five atolls, with 50-year lease terms and attractive tax incentive packages.
1
Register with the Ministry of Economic Development and Trade (MEDT)
Submit your application and demonstrate financial capacity under the Foreign Investment Act. Walk-in consultations are available at the Ministry for prospective investors.
2
Identify and bid for an island or lagoon plot
The Ministry of Tourism periodically issues tenders for islands and lagoon plots.
- Minimum investment of USD 100,000 per room
- Bid security of USD 40,000 per proposal
- All bids must include a renewable energy plan
3
Sign the Island Land Lease Agreement
In practice, this lease has historically stood in for a standalone Foreign Investment Agreement for tourism investments.
MEDT's FDI policy has pushed since 2020 toward requiring a formal Foreign Investment Agreement too, confirm current requirements before relying on the lease alone.
Initial term is 50 years under the Maldives Tourism Act, extendable to a maximum of 99 years for an additional fee once development conditions are met.
4
Register your company and obtain operating licenses
- Foreign investors may register fully owned companies (100% foreign ownership permitted)
- Sector-specific operating licenses are issued by the Ministry of Tourism
5
Engage Crowe Maldives for financial structuring and compliance
From pre-opening tax planning and contract audit to Income Tax registration, T-GST/Green Tax compliance, and annual statutory audit — end-to-end professional services throughout development and into ongoing operations.
1
100% foreign ownership
Full foreign ownership is permitted in resort operations, no local partner is required, unlike many other sectors of the Maldivian economy.
2
Free repatriation of profits
Investors may freely repatriate profits and capital proceeds at any time, with no restrictions on the flow of investment income out of the country.
3
No foreign exchange restrictions
There are no foreign exchange restrictions on investment inflows or outflows, giving investors certainty over cross-border capital movement.
4
Long-term land security
Island leases run for an initial 50-year term under the Maldives Tourism Act, with the option to extend to a maximum of 99 years which gives the investors the long-term tenure security that capital-intensive resort developments demand.
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