Resorts Rising, Islands Changing

Written By Landsea Maldives

SAFER Project – Strengthening Activism for Environmental Rights

Supported by the European Union, this blog-post series by Land Sea Maldives begins an investigation into the hidden costs of environmental damage, how those costs affect livelihoods, and what opportunities for growth may be overlooked. This piece in the series, focuses on the interplay between resort-development, nature, island communities and jobs in the Maldives.

Introduction

In the Maldives, luxury resorts and island tourism have driven significant economic growth. Yet this rapid development often sits at the meeting point of nature, infrastructure, jobs and environmental pressure. The question is: when resorts rise, how are island ecosystems and local livelihoods impacted — positively and negatively? This post explores how tourism expansion affects environment-livelihood dynamics and where hidden costs and potential growth drivers lie.

The Environment-Tourism-Livelihood Link

Tourism in the Maldives depends heavily on natural capital—beaches, reefs, coastal vegetation, and pristine island settings.¹ At the same time, resort development, land reclamation, coastal infrastructure, increased waste and energy demands place pressure on these natural systems.
Key linkages include:

  • Resort infrastructure often lies within 100 m of the shoreline, making it reliant on beach stability and reef health; any environmental damage (erosion, reef loss) undermines the tourism product and jobs tied to it.²

  • Local island employment is tied to resorts and related services (guest-houses, diving, transport, food supply). Sustainable resort development that preserves nature is therefore critical for the longevity of those jobs.³

  • Environmental degradation (coral bleaching, beach erosion, coastal vegetation removal) creates hidden costs—repair, mitigation, reduced attractiveness, and hence potential loss of income or jobs for locals.¹

Hidden Costs & Growth Constraints

While resorts bring jobs and foreign exchange, the environmental trade-offs can reduce long-term growth potential and resilience:

  • If beachfront erosion increases, resort appeal falls, bookings drop, and local staff or service providers may lose income.

  • Coral reef degradation reduces snorkel/dive tourism and affects local fishermen who supply resorts, shifting employment or reducing earnings.²

  • Rapid resort growth without local supply-chain development or community employment means opportunities may bypass island residents, limiting inclusive growth.⁴

Therefore, the hidden cost is not just environmental damage—it is foregone income, reduced employment pathways and stunted local enterprise growth. The growth potential exists if tourism development aligns with environmental stewardship and community-based livelihood linkages.

Responding & Orienting Growth

A growing body of policy and practice in the Maldives emphasises sustainable tourism: protecting natural resources, increasing local employment and managing environmental impact.³ Strategies include:

  • Resort developers adopting eco-design and environmental standards to protect beaches, reefs and local nature.³

  • Strengthening local supply-chains and ensuring island-based jobs beyond frontline resort staff (maintenance, waste-management, local agriculture).

  • Integrating community-owned tourism ventures (guest-houses, eco-lodges) that leverage nature while spreading economic benefit.

Questions for Island-Level Investigation

  • Has your island seen increases in resort-related development (guest-houses, day-tourism) and how has it changed local jobs or services?

  • Are local businesses supplying resorts (food, transport, services) benefiting? Or are most jobs held by outside workers?

  • Have environmental changes (beach erosion, reef decline, coastal vegetation removal) impacted tourism appeal or local service income?

  • Could your island develop complementary tourism initiatives (eco-tourism, community-lodges, local craft supply) to capture more value and link nature + livelihood?

Conclusion

Resort growth in the Maldives carries promise—but also risk. Without sound environmental stewardship and strong links to local livelihoods, development may widen inequalities, erode natural assets and reduce growth opportunities for island communities. Under the SAFER Project’s investigative lens, we observe: resort development → environmental pressure → hidden livelihood cost or growth opportunity. The key is not just building more resorts—but building tourism that sustains nature, supports local employment and unlocks inclusive growth.

References

Food and Agriculture Organization. (2004). Tourism and the environment: Current issues for sustainable development (Paper 6). https://www.fao.org/4/x5623e/x5623e0p.htm¹
United Nations Development Programme. (n.d.). Implementing tourism adaptation to climate change in the Maldives. https://www.adaptation-undp.org/projects/implementing-tourism-adaptation-climate-change-maldives²
Hotelier Maldives. (2022). Sustainable tourism in Maldives. https://hoteliermaldives.com/sustainable-tourism-in-maldives/³
Majeed, A. (2021). Economic and environmental vulnerabilities of the Maldives. https://saruna.mnu.edu.mv/server/api/core/bitstreams/d245a5da-0c58-4199-b3a2-12de88707a18/content⁴

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