Maldivian Businesses Report Decline in Second Quarter, Says MMA Survey

Conducted from June 25 to July 11, the survey included 118 businesses from tourism, wholesale/retail, transport, and construction sectors.

Employment levels dropped in the tourism and construction sectors, with tourism experiencing the most significant decline. Conversely, the wholesale and retail trade sector, along with the transportation and communication sector, saw a notable increase in new hires during this period.

The off-peak season from May to July led to decreased room occupancy in the tourism sector, with 97% of respondents reporting lower occupancy rates. This resulted in a 99% dip in the sector's revenue.

Inbound tourism also saw a decline during the second quarter, though numbers have begun to recover in July. Despite the challenges, businesses in the tourism sector remain cautiously optimistic about the next quarter, expecting slow improvement.

Business sentiments in the construction and wholesale/retail sectors were mixed, while the transportation and communication sector showed optimism for future growth, the report highlighted.