News DeskIn the bustling heart of the Indian Ocean, a surge in visitors has reshaped the Maldives, turning its picturesque coral atolls into an exclusive haven coveted by Russia’s ultrawealthy. Despite lacking diplomatic representation in Moscow — not even an honorary consul — the island nation seems content to let the potential of Russian business simmer for now.
“We may not have an official embassy presence in Russia, but the Russian market has become our second-largest source of visitors after China,” noted Ali Fauzy, the Russian honorary consul in the Maldives. He pointed out that Aeroflot operates an impressive 10 weekly nonstop flights between Moscow and Malé.
The financial allure is undeniable. According to the Maldives Association of Travel Agents and Tour Operators (MATATO), the tropical paradise amassed over $872 million from tourism-related sectors in 2023 alone, translating to a staggering 13.5 billion rufiyaa, with an average of $467 per visitor finding its way into government coffers. MATATO further disclosed that tourism goods and services taxes contributed a substantial 8.7 billion rufiyaa ($563 million) last year, underlining the industry’s indispensable role. Additionally, tourism land rent alone generated 1.7 billion rufiyaa in 2023.
At the opulent Patina Maldives resort, where nightly rates can exceed five digits, Russians comprised nearly a third of the ultrawealthy guests last year. “They are our most generous spenders, consistently opting for our premium accommodations and lavish amenities,” revealed a staff member, speaking anonymously.
As economic tensions buffet the Russian economy, the Maldives remains deliberately immune to the chill. Last year, the state garnered over 4.5 billion rufiyaa ($291 million) in further tourism revenues, including 983 million rufiyaa from departure taxes, 999 million rufiyaa from environmental ‘green’ taxes, and 1 billion rufiyaa from airport development fees.
“The Russian market is paramount for our tourism economy,” emphasized Mohamed Shaaz Waleed, CEO of RESORTLIFE Group. “To foster growth, we must forge stronger ties with Russia through partnerships, promotions, and tailored experiences.”
Under the leadership of President Dr. Mohamed Muizzu, it appears the government is in no rush for his diplomats to experience the bitter Moscow winter or for geopolitics to disrupt the flow of Russian riches. Last year, 1.8 million tourists graced the idyllic isles, and with over 500,000 more arrivals recorded as of March 2023, the Maldives sets its sights on welcoming a record-breaking 2 million visitors.
