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On July 26, 2025, Maldives marked its 60th Independence Day with a landmark event: the grand opening of the long-awaited new passenger terminal at Velana International Airport (MLE). President Mohamed Muizzu hailed the $585 million facility as “a pillar of economic independence,” spotlighting the terminal’s pivotal role in transforming the island nation’s tourism-driven economy.
Spanning 72,000 square meters and designed to accommodate 7.5 million passengers annually—more than triple the previous capacity—the terminal is the largest building ever constructed in the Maldives. It features 47 check-in counters, six self-service kiosks, 20 immigration counters, six boarding gates, and 12 aerobridges, along with state-of-the-art baggage handling and real-time tracking systems. The design elegantly blends modern architecture with Maldivian motifs, reflecting the natural beauty and culture of the islands.
Tourism accounts for roughly 21% of the Maldives’ GDP, and this expansion aims to eliminate infrastructure bottlenecks that previously restrained growth. According to the World Bank’s April 2025 report, the facility could bolster average economic growth by 5.2% in the medium term, while the International Monetary Fund expects the expanded terminal to sustain tourism momentum crucial to the country’s prosperity.
The project has a complex political and financial history. Originally initiated with India’s GMR Group in 2010, the contract was canceled in 2012 amid political shifts, leading to alternate funding from Saudi Arabia, Kuwait, the UAE, and OPEC development funds alongside national budget contributions. These delays and shifting partnerships have significantly increased Maldives’ foreign debt, which now exceeds $8 billion.
Recent years saw diplomatic strains with India, including a 2024 “Boycott Maldives” campaign. However, relations have warmed considerably post Prime Minister Narendra Modi’s 2025 visit, with tourism officials targeting 300,000 Indian visitors in 2025 through enhanced air connectivity and marketing featuring Bollywood star Katrina Kaif. Early 2025 arrivals rose 9%, fueled by strong interest from China and Europe, signaling a recovery and expansion in key markets.
The terminal’s inauguration was celebrated nationwide with dazzling drone light shows, fireworks, and cultural performances across Malé and neighboring islands, drawing some 6,000 guests.
With this state-of-the-art terminal now operational, Maldives is poised to solidify its standing as a premier global destination, supporting the government’s ambitious $5 billion tourism revenue target for the year. Experts and officials alike regard the enhanced airport capacity and facilities as essential to accommodating growing tourist numbers, diversifying market segments such as multi-generational travel, MICE (Meetings, Incentives, Conferences, and Exhibitions), adventure, and wellness tourism, and securing the nation’s economic future.