The completion of the new terminal at Velana International Airport is expected to significantly bolster tourist arrivals and support sustained economic growth in the Maldives, according to the World Bank’s latest Maldives Development Update 2025.
The World Bank projects that increased airport capacity will contribute to an average economic growth rate of 5.2 percent over the medium term. The Maldives’ tourism sector, which accounts for around 21 percent of GDP, continues to drive economic activity, with tourist arrivals reaching a record 2.05 million in 2024.
The enhanced infrastructure at Velana International Airport is seen as critical to maintaining this momentum, especially as key markets such as China, Russia, and Western Europe show strong demand. Improved facilities are expected to accommodate higher volumes of international flights and visitors, which is vital as spending per tourist has begun to moderate.
“The expansion of airport capacity through the new terminal will enable the Maldives to better manage growing tourist flows and enhance visitor experiences, thereby strengthening its position as a leading global destination,” the World Bank report stated.
However, the report also cautions that while the new terminal is a positive development, broader economic challenges persist. Without meaningful fiscal reforms, including measures to reduce subsidies and rationalize public spending, the Maldives may struggle to maintain macroeconomic stability despite tourism growth.
The successful completion of the terminal comes at a pivotal time, as the country seeks to diversify its economy and secure long-term resilience in the face of rising fiscal and external pressures.