Professional Documents
Culture Documents
2
§
A
PRESENTATION
ON
³STUDY OF MICRO & MACRO ECONOMY OF
MALDIEVES´
BY
MAYUR.V. PATEL
{092034}
BATCH-M1(A)
SUBMITTED TO
PROF.SUHRUD NEURGAONKAR
MITSOT(Pune)
2009-11
Maldives comprises an approximate population
of 385,925 people spread over about 1900
islands. Mixed economy is one of the major
features that include tourism, fishing and
shipping industry. Struggling with the post-
impact of Tsunami in 2004, Maldives economy
has managed to find stable ground by achieving
US $1.588 billion GDP and a growth rate of
6.6% till 2007.
[ %bout 99% of the territory of Maldives comprises water. No
wonder, this has proved to be one of the major reasons for the
success of tourism and fishing industry. Since the land is not
fertile enough, agricultural possibility is restricted. The vegetation
is limited to the growth of few tropical fruits, vegetables and root
crops. Dearth of proper resources has resulted in poor
manufacturing prospects of basic essentials and consumer
goods. So, almost everything is imported in Maldives.
6 Õ Õ 6 Õ
primary
20
secondary
18
2
tertiary
· %
Due to the availability of poor soil and scarceness
of arable land in the islands, agriculture is limited to
only a few subsistence crops, such as
coconut, banana, breadfruit, papayas, mangoes, taro,
betel, chilies, sweet potatoes, and onions. %griculture
contributes about 6% of GDP
[ S
The industrial sector provides only about 7% of
GDP. Traditional industry consists of boat building
and handicrafts, while modern industry is limited to
a few tuna canneries, five garment factories, a
bottling plant, and a few enterprises in the capital
producing PVC pipe, soap, furniture, and food
products. There are no Patent Laws in the
Maldives
[ S
The Maldives has successfully promoted its natural assets
for tourism. The beautiful, unpolluted beaches on small coral
islands, blue waters and sunsets attract tourists
worldwide, bringing in about $325 million a year. Tourism and
other services in the tertiary sector contributed 33% to the
GDP.Since the establishment of the first resort in 1972, over
84 islands have been developed as tourist resorts, with a total
capacity of some 16,000 beds. The number of tourists (mainly
from Europe) visiting the Maldives increased from 1,100 in
1972 to 280,000 . In 2000, tourist arrivals exceeded 466,000.
The average occupancy rate is 68%, with the average
number of tourists staying for 8 days and spending about
$755.
[ S%% C(2ND %UGUST 1983)
[ WTO(27 SEP 1981)
[ UNESCO(18 JULY 1980)
[ UNISEF(6 %P IL 1971)
[ INTE POL(4 SEP 1984)
[ IMF(13 J%N 1978)
[ The gross domestic product (GDP) or gross
domestic income (GDI) is a measure of a
country's overall economic output. It is the market
value of all final goods and services made within
the borders of a country in a year. It is often
positively correlated with the standard of living.
r %S%S
$5,000 (2009 est.)
å-
r
Total $1.357 billion (2009 estimate)
[ %s a collection of thousands of secluded tropical
islands, the Maldives should have little impact on the
workings on the elite economics of the G20 nations, yet
the United Nation's World Tourism Organization
(UNWTO) believes the country can have a vital role in
the global development debate.%s a major tourist
economy, the Indian Ocean archipelago is seen by the
global tourism body as offering an important indicator of
the role that the seemingly carefree world of holiday
making can have on aiding developing countries to meet
the social and economic goals outlined by groups like
the United Nations.
The comments come ahead of next month's G20 summit meeting
in Seoul, South Korea, where the T20, an unofficial analogue
group consisting of the same 20 member states' tourism
ministers, are pledging to try and play up the development
opportunities afforded by a well managed holiday industry.
[ 1. Import duty
Import duty is a duty levied on imported commodities.
It is a percentage charged on the cost, insurance and
freight (CIF) of imports. The duty charges range from
5% to 200%. Import duty is about one quarter of the
government revenue .
2. Tourism tax
Tourism is the largest industry in Maldives and
developments in tourism drive the other sectors of
the economy at present. Tourism has experienced
phenomena growth since its inception some 30
years ago, with an 8% average annual growth in
tourist arrivals. Tourism tax composes 13% of
government revenue. This contribution is
generated through the tourist bed tax levied at a
flat rate of US$6
Strengthening and diversifying the economyå The economy
will continue to be dominated by fisheries and tourism. These
sectors can be strengthened, while moves are made to
diversify other economic sectors.