While the guest house businesses introduced especially for the local tourism has passed the 10-year mark, there are over 500 registered guest houses in Maldives. The guest house business is the latest product introduced in the Maldivian tourism industry and over the years has proven to be a successful endeavour.
Since the introduction of tourism in Maldives in 1972, the element has introduced several businesses to increase the income from the sector such as resorts, hotels and liveaboards which were introduced long before guesthouses.
Guest house services are normally targeted for budget tourists arriving in Maldives. The service was first introduced in 2008 in Maafushi in Kaafu Atoll. 490 guest houses were registered in 2018 which increased the capacity of the guest house business to 8,112 beds, according to statistics of the Ministry of Tourism. In average, the capacity of guest houses is between 6-40 beds and the occupancy level of the guesthouses was at 18% in 2012, which has now risen to 37%.
Guest House is proven to be the best option for budget travellers. The service focused on local islands has enabled tourists to get familiar with the Maldivian culture and traditions. In order to further enhance the guest house businesses, several promotional activities are conducted by tourism ministry and private organisations. In this regard, the government has been issuing loans to further boost the guest house business in Maldives.
Guest house business benefits the local small communities immensely as the businesses are swiftly combined with guest houses which includes diving, beach sports, souvenir shops, restaurants and hand-made product businesses.