MALDIVES- Velana International Airport (MLE) has opened its long-awaited new passenger terminal, with Maldivian President Mohamed Muizzu calling it “a pillar of economic independence.”
The $585 million facility, inaugurated on July 26, 2025, coincided with the nation’s 60th Independence Day and aims to transform the country’s tourism-driven economy.
The upgraded terminal, home to national carrier Maldivian (Q2), is designed to handle 7.5 million passengers annually, more than triple the current capacity.
Officials expect it to attract higher tourist arrivals, especially as the Maldives seeks to strengthen its position as a leading Indian Ocean destination.
Photo: Maldives CorporateMaldives New Airport Terminal
The Maldives depends heavily on tourism, which contributes around 21 percent to its GDP. The new terminal is expected to remove infrastructure bottlenecks that previously limited growth.
According to the World Bank’s April 2025 report, the facility could support an average economic growth rate of 5.2 percent in the medium term.
The International Monetary Fund also noted the expansion will sustain the momentum of the country’s tourism industry.
Spanning modern architecture infused with Maldivian design motifs, the terminal features 47 check-in counters, six self-service kiosks, 20 immigration counters, six boarding gates, and 12 aerobridges.
It is the largest building ever constructed in the Maldives and represents over a decade of planning and political negotiations.
Photo- WikipediaFinancing and Political Background
The terminal was financed through loans from the Saudi Fund for Development, the OPEC Fund for International Development, the Kuwait Fund for Arab Economic Development, and the Abu Dhabi Fund for Development, alongside national budget allocations.
However, the project faced significant delays and political disputes.
Its origins trace back to a 2010 agreement with Indian infrastructure firm GMR, which was later cancelled by then-President Abdulla Yameen in 2012. Subsequent plans were tied to Chinese financing, leading to further complications.
Critics say the delays and cost overruns have added substantially to the Maldives’ foreign debt, now estimated at over $8 billion.
Photo: Maldives Rebuilding Tourist Markets
Political tensions in recent years, including an “India Out” campaign, strained relations with India, and triggered a “Boycott Maldives” movement among Indian travellers in 2024.
However, diplomatic ties have improved following Prime Minister Narendra Modi’s 2025 state visit.
Tourism officials now aim to attract 300,000 Indian visitors in 2025 through increased air connectivity, targeted promotions, and high-profile marketing campaigns featuring Bollywood star Katrina Kaif.
The Maldives Monetary Authority reported a 9 percent rise in arrivals in the first half of 2025, with strong growth from China and European markets.
Seaplane Resorts, Maldives; Photo- Maldives CallingOutlook
With the expanded Velana International Airport terminal now operational, the Maldives has positioned itself for higher visitor numbers and stronger economic growth.
Industry leaders see the development as essential for sustaining tourism revenues and meeting the government’s $5 billion target for the year.
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