Expansion of airport facilities in Maldives aims to attract increased tourist population
The Maldives has unveiled its new terminal at Velana International Airport (VIA), marking a significant milestone in the country's tourism and economic development. The state-of-the-art terminal, inaugurated on July 26, 2025, is designed to accommodate up to 7.5 million passengers annually, addressing the current overcrowding issues and supporting continued growth in tourist arrivals.
The new terminal's capacity boost is crucial, as tourism is the largest economic sector in the Maldives. The expanded facility will feature 47 check-in counters, six self-service kiosks, 20 departure immigration counters, six boarding gates, and 12 aerobridges. These improvements will enable smoother and quicker processing, enhancing traveler satisfaction and airport efficiency.
The terminal's design showcases traditional Maldivian motifs and wave patterns, reflecting the country's natural beauty and culture. Facilities include better lounges, more elevators, escalators, and dedicated seaplane counters, all aimed at improving the overall passenger experience.
The new terminal is expected to drive growth, particularly in tourism, which contributes 21% to the Maldives' GDP. By facilitating higher tourist inflow and improving connectivity, the new terminal supports increased spending in tourism and related sectors, contributing positively to national economic growth.
International financial institutions like the World Bank and the IMF view the terminal's opening as a potential game-changer. Jyoti Mayal, Chairperson of Tourism & Hospitality Skill Council and the former President of the Travel Agents Association of India, believes that the Maldives government's initiatives to attract Indian tourists will lead to an increase in Indian tourist arrivals.
The new terminal's completion comes after nearly a decade of planning and with three successive leaders attempting to take the project forward. Fayyaz Ismail, a former Maldivian politician, claims that if the initial airport project awarded in 2010 had not been terminated, it would have been opened in 2014, and the Maldivian economy would have tripled without any debt. However, the new terminal was built at a cost of $585 million, raised through loans from various international funds and allocations in the national budget.
The Maldives' relationship with India, which saw a persisting strain in President Muizzu's first year in office, was reset a year later. This reset was evident during Prime Minister Narendra Modi's state visit to the Maldives last month, which coincided with the Maldives’ 60th independence anniversary. India provided a $400 million currency swap in 2024 and subsequent economic assistance, which President Muizzu described as "pivotal" for the Maldives' economic stability.
However, the opposition Maldivian Democratic Party chairperson, Fayyaz Ismail, describes the new airport terminal as a "debt-laden, cost-overrun project" with years of delay. Despite this, the new terminal is seen as a significant achievement for the Maldives, ending a decade marked by political shifts and economic strain.
In summary, the new Velana International Airport terminal is designed to support expanding tourism demand and enhance visitor experience, thus providing a strong stimulus to the Maldives' economy and reinforcing its status as a premier tourist destination. The terminal's opening is expected to lead to projected economic growth of 5.2% on average over the medium term, making it a crucial step towards the Maldives' goal of attracting 300,000 Indian visitors by 2025.
[1] Maldives Independent. (2025). New Velana International Airport terminal opens. Retrieved from https://maldivesindependent.com/new-velana-international-airport-terminal-opens-166238
[2] Maldives Insider. (2025). New Velana International Airport Terminal Opens. Retrieved from https://www.maldivesinsider.com/new-velana-international-airport-terminal-opens/
[3] The Straits Times. (2025). Maldives unveils new airport terminal to boost tourism. Retrieved from https://www.straitstimes.com/world/asia/maldives-unveils-new-airport-terminal-to-boost-tourism
[4] Maldives Business Review. (2025). Velana International Airport inaugurates new terminal. Retrieved from https://maldivesbusinessreview.com/velana-international-airport-inaugurates-new-terminal/
[5] Tourism Review. (2025). Maldives unveils new airport terminal to boost tourism. Retrieved from https://tourismreview.com/maldives-unveils-new-airport-terminal-to-boost-tourism/
- The business sector, along with the Maldivian government, is optimistic that the new Velana International Airport terminal will attract more tourists, particularly from India, boosting the Maldives' tourism industry and overall economy.
- The Maldives' new terminal infrastructure will not only accommodate increased passenger numbers but also provide a better lifestyle experience for travelers, with improved facilities and design elements reflecting the country's culture.
- The new terminal's completion marks a pivotal moment in the Maldives' economic development, as it addresses current overcrowding issues and supports continued growth in tourist arrivals, contributing significantly to the country's GDP.
- The success of the Maldives' tourism industry is closely monitored by global financial institutions like the World Bank and the IMF, which view the new terminal as a potentially game-changing move for the island nation's economic growth.
- The Maldives' ongoing relationship with India, recently reset following political shifts and economic strain, is demonstrated by India's recent economic assistance, including a $400 million currency swap, to support the Maldives' economic stability.
- The new Velana International Airport terminal's costly construction, financed through loans and national budget allocations, has been criticized by some political figures, such as Fayyaz Ismail, as a debt-laden and cost-overrun project that resulted from years of delays and political instability in the Maldives.
