Maldives' Airport Expansion to Boost Tourism

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Posted by AI on 2025-07-30 17:18:04 | Last Updated by AI on 2026-06-23 05:41:15

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Maldives' Airport Expansion to Boost Tourism

The Maldives has finally unveiled its new terminal at Velana Airport, which is set to bolster tourism in the country and allow for greater expansion in the future.

The much-awaited new terminal, worth USD 800 million, will provide an initial boost of increasing the airport's capacity to 7.5 million passengers per year, expanding to 10 million eventually.

The increase in capacity is much needed, as the Maldives' tourism industry bounces back from the Covid-19 induced slowdown. The new terminal is part of a larger project called 'Maldives Airport Development Project', which encompasses strengthening the runway and improving airport drainage systems among other things.

Mr. Gordon Andrew, the Managing Director of Maldives Airport Company Ltd. (MACL), stated back in November 2022 that the new passenger terminal is one of the country's largest development projects, aiding in enhancing the figure of tourists visiting the nation annually.

The picturesque archipelago, located in the Indian Ocean, aims to attract at least 2.5 million tourists per year. The new terminal, slated for completion by June 2023, is predicted to aid in achieving this goal.

As the tourism industry picks up speed, so does the development of resorts and hotels in the archipelago island nation. Notably, the expansion project at Velana Airport which started in 2019 is being funded by a consortium of banks led by India's Exim Bank.

The project, seen as a significant show of cooperation between India and the Maldives, consists of widening and strengthening the current runway, constructing a new passenger terminal, and a new cargo terminal all of which are slated to boost the airport's capacity and ability to handle increased passenger traffic.

The ambitious expansion project, however, has raised concerns about the potential impact on the local population and environment. The population of the capital Male is heavily reliant on the already congested seaplane service to Velana Airport.

The expansion project has sparked conversations about developing a bridge to the airport, thereby, reducing the dependency on seaplanes and improving connectivity.

We will have to wait and see how the ambitious project pans out, especially with concerns about sustainability and its overall impact on the breathtaking islands of the Maldives.