JICA and ABD Provide $13 Million Loan to Boost Maldives Tourism Industry and Foster Sustainable Practices

The Maldives, a popular tourist destination known for its pristine beaches and luxury Maldives villas the likes of Baglioni Resort Maldives, has announced a new initiative to support the country’s tourism sector. The Bank of Maldives PLC has received a loan of up to $13 million from the Japan International Cooperation Agency (JICA) to provide loans to local tourism providers. Co-financed by the Asian Development Bank (ADB) and the Development Bank of Austria (OeEB), this is JICA’s first Private Sector Investment Finance project for the Maldives. The Maldives, known as “the pearl necklace of the Indian Ocean,” relies heavily on tourism, with the sector and related industries contributing over 75% of the country’s GDP. However, the COVID-19 pandemic caused a 70% decline in international arrivals in 2020, significantly impacting local tourism providers. In light of this, expanding financial services for local tourism providers has become crucial in helping the Maldivian economy to recover.