Evaluating air transport barriers to tourism development in island states – A case study of an air service subsidy scheme in the Maldives

One-third of the Maldives’ economic output is generated by tourism. However, Maldivian tourism efforts are unevenly distributed impacting the socioeconomic developments in the north and south regions. This case study evaluates air transport barriers as one factor contributing to the sluggish tourism development in these regions and investigates how an air service subsidy scheme could be a potential solution to those barriers. Using 38 semi-structured questionnaires, perceptions on these two areas were collected from a selected group of senior-level management personnel in the Maldivian tourism and air transport industry in 2021. Barriers identified included factors such as geography, operations, market, air transfer cost, air transport policy, and infrastructure. The majority of participants supported an air service subsidy scheme as a possible solution to stimulate tourism activities in the north and south of the Maldives. Opportunities, challenges and implementation of an air subsidy scheme are discussed. Findings shed light not only on possible solutions for the Maldives but also on other island locations and contribute to the pool of knowledge of air connectivity economics.