Understand

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History
Formerly a Sultanate under Dutch and English protection, the Maldives are now a republic. Allegations of corruption continue to plague the regime of President Gayoom, as do reports of political dissidents being exiled. None of this appears to bother tourists, however, who are attracted to the warm Indian Ocean waters.

The Tsunami of 26 December 2004 caused extensive damage to the Maldives - of a population of only 290,000, over a third was directly affected by the tsunami and more than 29,000 people were left homeless. The economic damage alone was over 62% of the GDP or US$470 million.

Some islands, including Thaa atoll Vilufushi, felt the brunt of the wave, and residents on the island are now living in temporary shelters on the island of Buruni in the same atoll. More than a year later, there are in excess of 11,000 people in temporary shelters across the country. It was a brutal shock to the small island state which is so vulnerable to environmental disasters and global warming.

Economy
Tourism, Maldives largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Almost 400,000 tourists visited the islands in 1998. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a minor role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level.

Eat

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All the resorts are self contained so they have at least one restaurant. They generally serve the type of cuisine expected by their guests. ( i.e. modern European or Asian).

The only other place to find food is Male. This comes in two forms. Either small restaurants aimed at the tourists (of which there are a couple of nice Thai restaurants) or small cafes and carts selling local Maldivian food. Try things like the fish balls but they are very spicy so be careful if you have a weak stomach.

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