CC BY
49
УДК 379.85(548.82)
Aishath Luha, student of the international faculty, Kursk State Medical University
e-mail: luhaaishath96@gmail.com
TOURISM INDUSTRY IN MALDIVES
Abstract: the article describes the development of the tourism industry in Maldives as one of the most important industry in the economy of the country. It examines the dynamics of foreign arrivals, exchange revenues, and the impact of the industry on the macroeconomic indicators of Maldives. By increasing the employment rate, tourism industry leads to increase the purchasing power which will face the problem of higher cost of living, but GDP of the country will raise.
Keywords: tourism industry, economy, revenues, GDP
Айшат Луха, студент международного факультета, Курского Государственного Медицинского Университета
электронная почта: luhaaishath96@gmail.com
ИНДУСТРИЯ ТУРИЗМА НА МАЛЬДИВАХ
Аннотация: в статье рассматривается развитие туристической отрасли Мальдивских островов как одной из важнейших отраслей экономики страны. Рассматривается динамика притока иностранных инвестиций, валютных поступлений и влияние отрасли на макроэкономические показатели Мальдивских островов. Повышая уровень занятости, индустрия туризма приводит к увеличению покупательной способности и росту стоимости жизни в стране, вместе с тем ВВП страны также будет увеличиваться.
Ключевые слова: индустрия туризма, экономика, доходы, ВВП
Maldives is known as "The Tropical Paradise" for reasons such as its beauty, their living style and the beautiful peoples. Maldives is the smallest country in South Asia with the lowest population which is approximately 436 thousand as at 2017. The GDP of Maldives are lowest among the south Asian countries with $5.853 billion. And GDP per Capita is $12530. This may be increased by now. As the data's are collected at 2017[2].
At the beginning, as the geographical formation of Maldives is mostly based on the water so the raw materials and the space are very limited that they can't do the huge industrial works. Based on the geography Maldivians used do fishing as they are labeled as non-developed country and they are not educated and lay alone from other countries which faces difficulties on growth of their economy. However, with the big revolution of traveling things starts changing. As many foreigners visiting to the beautiful Maldives build with about 1190 small islands. This starts to build ideas about how to use their nature to get income and how to build a strong economy. And with the help of world they became one of the leading location for tourists.Tourism is the largest economic industry in Maldives as, it plays an important role in earning foreign exchange revenues and generating employment in the tertiary sector of the of the country [1].
The huge improvement brings in tourism make a huge increasement in employment of the Maldives. As there are 87 resorts in different 9 atolls with a total of about 16000 beds. The unemployment rate of Maldives is 5 to 4 % for last 3,4 years which is very balancing. As many are changing their sector of work and the region due to migration etc. Anyways, there are possible ways that they can change and decrease the unemployment rate as the most of the resorts are using foreign workers. By exchanging them Maldives can reduce the unemployment rate as government is trying to increase the number of beds year by year [3].
The growth in employment leads to improve the social stability within the group as it will create rest in the society. Which will help them to come up with good ideas in order to complete the economy.
Chinese market is the biggest market for Maldives tourism as it shows a huge growth from past 10 years. However, the European countries are also increasing there numbers of tourists as Maldives highly targeted the Europeans [2].
Due to the strong marketing strategies Maldives are well known to the world. As it helps at huge infrastructure investment which leads the country to strong their economy. Especially, Chinese government gives many free aids and loans as they have a great bond between Maldives. And they are one of the biggest economy in Asia and in world. This will help Maldives to increase there infrastructure investment [2].
Moreover, with all the marketing within world Maldives can easily be able to market the tradition and the culture which will lead them to increase the local tourism within the inhabited islands such as Maafushi island one of the leading local destination in Maldives.
Forex Market or foreign exchange market refers to the monetary gain by selling goods and services or exchanging currencies in global markets.
As the above chart shows the foreign exchange have increased by 2018 due to increasement in tourists and the import. At the peak it holds at MVR 12663.1 million which means it will help to increase the value of their currency. The average interest rate of Maldivesstayed still at the 7 % [3].
Table 1- Foreign arrivals to Maldives between 2011 and 2016
Foreign Arrivals to Maldives
Rank Country 2016 2015 2014 2013 2012 2011
1 China 324,326 359,514 363,626 331,719 229,550 198,655
2 Germany 106,381 105,132 98,328 93,598 98,351 90,517
3 United Kingdom 101,843 92,775 88,704 85,869 91,776 104,508
4 Italy 71,202 65,616 57,862 57,854 62,782 83,328
5 India 66,955 52,368 45,587 38,014 31,721 30,978
6 Russia 46,522 44,323 66,308 76,479 66,378 63,936
7 France 40,487 42,024 50,656 54,328 56,775 59,694
8 Japan 39,894 39,244 38,817 39,463 36,438 35,782
9 United States 32,589 29,308 25,641 20,034 16,049 14,490
10 South Korea 29,580 33,001 34,896 30,306 23,933 25,285
Total 1,286,135 1,234,248 1,204,857 1,125,202 958,027 931,333
14000 12000 10000 8000 6000 4000 2000 0
■ Foreign Exchange ($) Figure 1- Foreign exchange revenue in Maldives in 12 months of 2018
However, with the positive impacts to the economy by tourism, on the other hand there are negative impacts. First of all, with the improvement shows in the employment will leads to a higher cost of living. As the more local businesses pushes out of the areas in order to meet their new customers [4].
And the impacts that affect environment by carrying capacity of the area, vegetation, air quality, bodies of water, the water table, wildlife, and natural phenomena. As the strict action to protect environment they can't do the huge investments on the buildings which the local tourism in Maldives are to be developed.
Local tourism or sustainable tourism is defined as tourism that respects both local people and the traveler. More European countries use this type of tourism. With the religious believes Maldivians and Europeans are very different in their cultures and trends. So, it found difficulties on local tourism [5].
To the conclusion, as the main industry and the huge sector which impactsthe economy of Maldives, tourism plays an important role in economy of Maldives. Both positive and negative. By increasing the employmentrate, this leads to increase the
purchasing power which will face the problem of higher cost of living. But GDP of the country will raise. And the stability within the country makes it easier to make choice in economy.
Reference
1. Research Paper: Development of Tourism in Maldives //http: //www.ijsrp. org/research_paper_apr2012/ij srp-apr-2012-73.pdf/
2. Wikipedia Article: Tourism in The Maldives //https://en.wikipedia.org/wiki/Tourism_in_the_Maldives/
3. Publication by Tourism Ministry //http: //www.tourism. gov.mv/pubs/TourismlndustryinMaldives/overview.htm/
4. Wikipedia Article: Impacts of Tourism https: //en.m. wikipedia.org/wiki/Impacts_of_tourism
5. LSED Article: Local Tourism//http://www.lsed-wealth.org/cgi-webaxy/item?308/
