Maldives Resorts Slash Room Rates Amidst Changing Tourism Landscape

Former Guesthouse Association President and K. Maafushi Council President Ahmed Karam expressed concerns over these changes to Atoll Times on Thursday. According to Karam, the traditional business model of Maldivian resorts has shifted dramatically, losing many of its previous advantages.

Karam explained that resorts once operated with ease by reducing supply to boost demand, selling 30% of their inventory to travel agencies at the start of each year, and receiving payments upfront. However, the emergence of foreign hotel chains in the Maldives has posed challenges for resorts that have not upgraded their facilities.

Some resorts are now offering full board packages for as low as $150, but reviews and website ratings indicate that service quality has not declined.

A World Bank report released late last month highlighted a trend of tourists opting for affordable guesthouses over expensive resorts. The report predicts this shift will significantly impact the growth trajectory of the Maldivian tourism industry.