Minister of Economic Development and Trade Mohamed Saeed has stated that the Velana International Airport (VIA) development megaproject will increase the GDP from USD6 billion to USD12 billion.
At the ceremony held to inaugurate the project to develop VIA and economic zone, Minister Saeed said President Dr. Mohamed Muizzu's development vision to overcome the country's fragile economic situation was formulated with the recommendations of economic experts. He highlighted that the connection between the country's GDP and tourist arrivals from 2003 to 2022 have been positive and the new administration made the decision to launch the airport development megaproject within a short period of time after holding discussions with numerous parties.
Additionally, Minister Saeed noted the complaints from stakeholders in the tourism and aviation industries, the most significant of which is the high price of fuel at VIA. He also said the tourism industry was reporting a decline in the length of stay of tourists in the Maldives despite the increase in the number of tourists. He emphasised that if the government had not initiated the megaproject, it would have missed the chance to rebuild and expand the economy, tackling the growing public debt in the process.
As such, Minister Saeed said the VIA development project will reduce the price of fuel supplied to airlines and increase cargo exports from the Maldives, strengthening the country's visitor-based economy. He also said VIA will become the most important transit point in the region, which will also benefit the Maldives.