Despite a decline in tourist arrivals caused by ongoing conflict in the Middle East, foreign currency earnings generated by the tourism sector for the Maldivian economy rose by one percent, the Maldives Monetary Authority (MMA) has stated.

The central bank noted that the conflict, which escalated late last February, led to the closure of key transit hubs and increased travel expenses, resulting in a marked drop in visitor numbers. Total tourist arrivals were down by six percent through the end of June, with the cumulative decrease standing at five percent when factoring in July.

To mitigate the negative impact caused by lower arrivals from Europe and North America, significant initiatives are underway to promote the Maldives in alternative source markets and expand flight connectivity, MMA said.

Following recent amendments to foreign exchange regulations, foreign currency inflows from the tourism sector into the commercial banking system and national official reserves have increased. As a result, MMA has raised its US dollar sales to local banks to support Telegraphic Transfer (TT) facilities for essential commodity imports.

Over one million tourists have visited the Maldives so far this year, representing a 4.5 percent decline compared to the corresponding period last year, when 1.3 million tourist arrivals were recorded.