President Dr Mohamed Muizzu has openly acknowledged the challenges in implementing one of his key election promises — increasing the airport traveller allowance from $500 to $1,000 — citing the severe economic impact of the ongoing Middle East conflict.
The admission marks a notable moment of candour from the President as his administration grapples with multiple economic pressures affecting the Maldives.
The Original Promise
During the 2023 presidential election campaign, President Muizzu promised to raise the duty-free traveller allowance to $1,000 per person. The pledge was popular among Maldivians who frequently travel abroad for medical treatment, education, shopping, and holidays. Many citizens viewed it as a practical way to ease the cost of living and give families greater flexibility when travelling.
After taking office, the government initially took steps toward fulfilling this commitment. However, the escalation of conflict in the Middle East since early 2026 has dramatically changed the economic landscape, forcing a reassessment of several fiscal promises.
Current Economic Challenges
In a recent address, President Muizzu explained that the sharp decline in tourism revenue — the country’s primary source of foreign currency — has made it difficult to increase the allowance at this time. Tourist arrivals have dropped significantly, leading to losses exceeding USD 500 million since March. This has put considerable pressure on the nation’s foreign reserves.
“We want to fulfil all our promises, including raising the traveller allowance to $1,000. However, due to the current global and regional situation, particularly the Middle East conflict, we are facing serious challenges,” the President stated.
The Maldives imports nearly all its fuel, food, and consumer goods. With reduced tourism income and high global commodity prices, maintaining economic stability has become the government’s immediate priority.
Impact on Citizens
The traveller allowance is especially important for Maldivians who travel to India, Sri Lanka, Thailand, and Malaysia for medical care. Many families rely on this allowance to bring back essential medicines, medical equipment, and household items at lower costs.
Opposition parties have criticised the delay, accusing the government of failing to manage the economy effectively. They argue that proper fiscal planning should have allowed the promise to be implemented despite external shocks.
President Muizzu, however, appealed for public understanding, saying the government is working hard to stabilise the economy so that such promises can be fulfilled in the near future. He emphasised that protecting the country’s overall economic health must take precedence.
Government’s Broader Economic Strategy
Despite the setback on the traveller allowance, the administration has highlighted other achievements in economic management. The government successfully repaid a USD 500 million Sukuk (Islamic bond) in April without major difficulties, which was seen as a positive sign of debt management capability.
Additionally, the President pointed to ongoing initiatives such as the development of strategic fuel reserves, expansion of gas storage facilities, and the ambitious plan to build 10 new state-owned resorts as long-term measures to strengthen economic resilience and create new revenue streams.
Economists following the situation note that while the government has shown some fiscal prudence, the heavy reliance on tourism makes the economy vulnerable to external shocks. They recommend faster diversification into sectors such as fisheries, agriculture, and digital economy to reduce risks.
Public and Political Reactions
The President’s admission has sparked widespread discussion on social media and in local cafes. While many citizens expressed disappointment, others appreciated the honesty and acknowledged the difficult global circumstances.
Opposition leaders, including former President Mohamed Nasheed, used the opportunity to question the government’s overall economic strategy and called for more transparent fiscal planning.
Tourism industry stakeholders have also urged the government to focus on immediate relief measures for the sector, arguing that reviving tourism is the fastest way to restore foreign currency inflows and eventually fulfil campaign promises.
Future Outlook
President Muizzu assured the public that the government remains committed to the $1,000 traveller allowance goal. He indicated that the policy could be reconsidered once the tourism sector shows clear signs of recovery and foreign reserves stabilise.
In the meantime, the Ministry of Finance is expected to review the current allowance structure and explore alternative ways to support frequent travellers, particularly those seeking medical treatment abroad.
This development highlights the difficult balancing act the Muizzu administration faces — delivering on popular promises while managing a tourism-dependent economy during a period of global uncertainty.
As the situation in the Middle East remains fluid, the coming months will be critical in determining whether the government can stabilise the economy and begin implementing its broader reform agenda, including the traveller allowance increase.
The President’s willingness to address the issue directly has been noted by political observers as an attempt to maintain public trust during challenging economic times.
