HomeBusinessMaldives Airport Expansion Poised to Boost Tourism and Economic Growth

Maldives Airport Expansion Poised to Boost Tourism and Economic Growth

Summary

  • The Maldives has inaugurated a $585 million passenger terminal at Velana International Airport, increasing annual capacity to 7.5 million passengers.
  • Tourism accounts for over 21% of GDP, with arrivals surpassing 2 million in 2024 and projected growth continuing in 2025.
  • The Maldives airport expansion includes world-class infrastructure such as 12 aerobridges, 47 check-in counters, and the world’s largest seaplane terminal.

Gateway to a New Era

The Maldives airport expansion marks one of the most ambitious infrastructure upgrades in the island nation’s history, setting the stage for a new era in tourism and economic performance. Inaugurated on July 26, 2025, the $585 million passenger terminal at Velana International Airport (MLE) boosts the airport’s annual capacity from just 2.5 million passengers to an impressive 7.5 million. This tripling of capacity comes at a crucial time, with the Maldives targeting record-breaking visitor arrivals and increased tourism revenues.

The Maldives airport expansion is more than just a physical upgrade, it is part of a strategic economic plan to strengthen the Maldives’ global appeal. Official World Bank data shows that the country welcomed 2.05 million tourists in 2024, an 8.9% increase from the previous year, contributing to a 5.5% GDP growth rate. With tourism making up 70% of Gross National Product (GNP), the Maldives airport expansion is not only about enhancing traveler experience but also about safeguarding the nation’s financial stability.

As global travel demand rebounds post-pandemic and regional competition intensifies, the upgraded Velana International Airport stands as the Maldives’ flagship project to attract new markets, from high-spending luxury travelers to growing segments such as adventure tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions).

Transforming the Maldives’ Aviation Hub

  • The largest aviation infrastructure investment in Maldives history
  • A project aligned with the national tourism master plan

The Maldives airport expansion has transformed Velana International Airport into a state-of-the-art aviation hub. The new 78,000 m² terminal is equipped with 47 check-in counters, 6 self-service kiosks, 20 immigration counters, 12 aerobridges, and 6 boarding gates. Designed by the Saudi Binladin Group and executed in partnership with global firms, it is built to accommodate 7.5 million passengers annually, aligning with tourism targets set in the Maldives National Development Plan.

The expansion includes not only the terminal but also a 3,400 m new runway, constructed by Beijing Urban Construction Group (BUCG), capable of handling the world’s largest aircraft, including the Airbus A380. Additionally, the Noovilu Seaplane Terminal, recognized as the world’s largest with capacity for 100 seaplanes, will streamline inter-island transfers for luxury resort guests.

The Maldives airport expansion is also a vital enabler of the government’s aim to achieve 5 billion dollars in tourism revenues by 2030, capitalizing on increased visitor arrivals from markets such as China, Europe, and India. In H1 2025 alone, arrivals rose by approximately 9%, with the Maldives setting a target of attracting 300,000 Indian visitors this year.

Beyond Tourism: Wider Economic Gains

  • Tourism seasonality is shifting
  • Economic resilience through diversification

One underreported aspect of the Maldives airport expansion is its potential to reduce the country’s seasonal tourism dependency. Historically, peak arrivals occur between November and April, with the off-season seeing reduced demand. With higher capacity and improved connectivity, the Maldives is in a better position to attract year-round travelers, including those attending international conferences and sporting events.

Another strategic angle is the potential for economic diversification. While tourism will remain dominant, the Maldives airport expansion could open avenues for increased air cargo operations, supporting sectors like fisheries and high-value exports. The addition of a modern fuel farm and expanded cargo facilities positions the Maldives as a potential logistics hub for the Indian Ocean region.

Furthermore, enhanced passenger processing facilities are expected to improve traveler satisfaction scores, which, according to the Ministry of Tourism, are closely linked to repeat visits and positive word-of-mouth promotion. The Maldives airport expansion, by streamlining travel logistics, is expected to play a key role in enhancing these satisfaction levels.

Balancing Growth and Responsibility

  • Environmental sustainability remains a key concern
  • Competition in the regional tourism market

While the Maldives airport expansion is expected to fuel economic growth, it also raises questions about environmental impact. The Maldives is one of the world’s most climate-vulnerable nations, and increased air traffic could contribute to higher carbon emissions. Industry experts argue that the benefits must be balanced with green aviation initiatives, such as promoting fuel-efficient aircraft and supporting carbon offset programs.

Regionally, the Maldives faces stiff competition from destinations like Seychelles, Mauritius, and Sri Lanka, all of which are upgrading their tourism infrastructure. The Maldives airport expansion gives the nation an edge in handling larger passenger volumes and providing a seamless transit experience, but sustaining this advantage will require continuous investment in marketing, destination management, and service quality.

There is also the challenge of ensuring that the benefits of increased tourism are distributed equitably among the islands, rather than concentrated in select resort zones. This will require policy alignment between the central government and local councils.

Charting the Path Forward

  • Aiming for 3 million visitors by 2030
  • Leveraging global partnerships for sustained growth

Looking ahead, the Maldives airport expansion could help the country surpass 3 million annual tourist arrivals by 2030, provided it continues to diversify source markets and strengthen airline partnerships. The Maldives Airports Company Limited (MACL) is already in talks with major carriers from the Middle East and Asia to increase direct flight frequencies.

On the policy front, the government is considering incentives for airlines that operate year-round services, which could stabilize seasonal revenue fluctuations. Digital transformation initiatives, including biometric immigration clearance and integrated e-visas, are also planned to complement the physical expansion.

Global aviation analysts predict that the Maldives airport expansion could help the country emerge as a premier transit stop for long-haul flights between Asia, Africa, and Europe if it leverages its strategic location effectively. This would add a new layer of economic activity beyond tourism.

A Defining Moment for the Islands

The Maldives airport expansion is more than a construction project, it is a statement of intent. By investing heavily in its primary gateway, the Maldives is signaling to the world that it is ready to compete at the highest levels of global tourism. The new facilities promise not only to improve passenger experience but also to boost the nation’s GDP, strengthen its logistics capacity, and reinforce its reputation as a world-class destination.

However, the true success of the Maldives airport expansion will depend on the country’s ability to balance rapid growth with sustainability, distribute tourism benefits equitably, and maintain its natural allure in an increasingly competitive market. If managed wisely, the Maldives airport expansion could mark the beginning of a golden decade for the island nation’s economy and its people.

Read Next

Follow us on:

Related Stories