Is unregulated Local Island Tourism & Overdevelopment of RESORTS Threatening FUTURE OF Luxury TOurism in Maldives?
The Decline of Maldives’ Luxury Appeal: How Unregulated Local Island Tourism and Overcrowded Lagoon Developments Threaten Its Future!
by Amjad Thaufeeq
For over five decades, The Maldives (www.visitmaldives.com) has been more than just a travel destination—it has been a dream, a sanctuary, and the pinnacle of luxury tourism. This country built its reputation on seclusion, pristine natural beauty, and world-class marine life, attracting discerning travelers, celebrities, and ultra-high-net-worth individuals (UHNWIs) seeking an escape from crowded, overdeveloped destinations.
But today, we are at a crossroads. Unregulated high-rise buildings on local islands and unchecked lagoon reclamation projects are eroding the very foundation that made the Maldives a global icon. What took 50 years of careful branding and planning to build is now being carelessly destroyed (killing it softly). If this continues, the Maldives will no longer be an exclusive paradise but just another overcrowded mass-market tourist hub—a tragedy for everyone who depends on tourism for their livelihood.

Are We Destroying What We Worked So Hard to Build?
While several emerging luxury tourism destinations, such as Saudi Arabia’s Red Sea Project, Seychelles, French Polynesia, Fiji and The Caribbean (Bahamas, St. Lucia, Turks & Caicos) etc etc are closely studying and adopting elements of the Maldives’ successful tourism model – some even improving upon it by integrating stricter sustainability measures and enhanced exclusivity, ironically the Maldives is dismantling its carefully curated luxury model – the exclusivity.

Unfortunately, few parties that have an interest in local island tourism believe that raising concerns about high-rise buildings and over-tourism means being against local businesses, especially guesthouses. That’s simply not true. Sustainability is not about stopping development, it’s about doing it right. The Maldives’ reputation as a luxury destination benefits everyone—from the largest five-star resort to the smallest guesthouse. If we lose that brand value, every sector of tourism will suffer. Do not forget! We do not have any other industry to feed our four-hundred thousand citizens. Even Fishing industry needs Tourism.

The Rise of High-Rise Buildings on Local Islands: A Direct Threat to Maldives’ Exclusivity
For years, Maldives resorts have followed strict building codes to preserve the natural environment and maintain the exclusive, private experience that tourists pay a premium for. These regulations include:

  • No building taller than the tallest tree on the island.
  • Maximum land development capped at 40% of the island, leaving at least 60% untouched to preserve its natural beauty.
  • Strict control on artificial lighting to prevent light pollution, allowing guests to enjoy serene, dark night skies.
But these rules do not apply to most of the local islands. Without regulations, high-rise hotels and guesthouses are being built without consideration for the destination’s exclusivity. This unchecked growth will lead to several critical issues:

1. Loss of Privacy and Exclusivity
One of the biggest reasons people choose the Maldives over other destinations is the feeling of seclusion. But with high-rise buildings popping up within the view of resorts, guests who once felt like they were in a private paradise now feel like they are just in any other part of the world. This destroys the premium experience and will force high-paying guests to look elsewhere in the future.

2. Light Pollution and Visual Disruption
Resorts carefully control lighting to ensure a natural, peaceful ambiance, but local island developments have no such restrictions. With bright city-style lighting, neon signs, and floodlights, what was once a dark, star-lit paradise is now being ruined by excessive artificial illumination.

Lagoon Reclamation and Overcrowding: Destroying Marine Life and Scenic Views
While high-rise buildings disrupt the visual and experiential appeal of the Maldives, the uncontrolled development of reclaimed islands in lagoons is causing even greater damage.

1. Overcrowding in Male’ Atoll
  • Male Atoll is already congested, with resorts, guesthouses, and reclaimed islands packed so closely together that privacy is no longer guaranteed.
  • Guests who once enjoyed uninterrupted ocean views now find themselves staring at nearby construction sites, hotels, and artificial islands.
  • The once-iconic picnic island/sandbank experience, a cherished highlight for guests, is no longer an option in South Male’ Atoll. What was once a chance to escape to a pristine, uninhabited island or a sandbank for a day of solitude and natural beauty has now disappeared due to overdevelopment and the loss of untouched islands and sandbanks. As these spaces vanish, so does a unique experience that once set the Maldives apart, leaving guests with fewer opportunities to enjoy the true essence of this island paradise.

2. Loss of Marine Biodiversity
  • Some of the best snorkeling and diving spots have been lost due to excessive dredging, land reclamation, and construction.
  • The destruction of coral reefs from pollution and overdevelopment is leading to a decline in fish populations, further reducing the Maldives' appeal to divers and eco-conscious travelers.

Some Urgent Recommendations to Protect the Maldives' Future
If we don’t act now, we risk losing the unique identity of the Maldives forever. The government must immediately enforce regulations that ensure sustainable tourism development.
1. Enforce Strict Local Island Tourism Laws
  • Limit high-rise buildings to three floors in areas close to the beach (within 350 meters).
  • For larger islands, allow a maximum of 5-7 stories but only at least 500 meters inland, away from the beach.
2. Introduce Zoning Laws for Lagoon Developments
  • Ban new island developments within 700 meters of existing resorts or natural islands.
  • Restrict the number of resorts per atoll to prevent overcrowding and loss of privacy.
  • Establish marine protected zones where development is completely prohibited.
3. Impose a Room Capacity Limit for Each Island
  • Restrict guesthouse and hotel development based on available free space, ensuring that no more than 40% of an island's empty land is used for tourism.
  • Set limits on the number of water villas per resort, based on island size and available lagoon space.
Why Is Immediate Action Needed?
If urgent steps are not taken to regulate local island developments, restrict high-rise structures, and control lagoon expansions, we risk:

  • Losing our competitive advantage to emerging destinations that are now doing a better job at preserving exclusivity. Unlike many other destinations that offer diverse landscapes, cultural attractions, and adventure tourism, the Maldives’ greatest asset is its pristine islands, white sandy beaches, and rich marine life. If we fail to protect them, we risk losing everything that sets us apart, leaving travelers with little reason to choose the Maldives over destinations that are now offering a more carefully preserved luxury experience.
  • Driving away high-value tourists who will no longer be willing to pay a premium for an experience that feels overcrowded and commercialized. A quick flyover of South Male’ atoll offers a glimpse into the future. In just few years, if unregulated development continues, Guests who once enjoyed uninterrupted ocean views and ultimate privacy will instead find themselves staring at another resort just a few meters away from their villa—a stark contrast to the untouched beauty they came for.
  • Suffering long-term reputational damage that may be impossible to reverse.

The time to act is now. We must make bold, responsible decisions to safeguard the Maldives’ future before we wake up to find that paradise has been lost—and with it, the very industry that sustains our nation.

It’s not just about protecting luxury tourism; it’s about ensuring the Maldives remains the extraordinary place we all love, for generations to come.'