How did tourism change the Maldivian economy after 1972?

Before 1972, the tourism industry did not exist in the Maldives, but its introduction triggered a rapid transformation of the nation's economy.1

The development of the tourism sector became the primary driver of economic growth, helping the country transition from having one of the world's lowest gross national income levels in the 1970s to achieving upper middle-income status by the late 2010s. By the mid-2010s, the service sector accounted for four-fifths of the country’s gross domestic product.21

This economic shift significantly altered the labor market:
* Sectoral Shift: There was a dramatic move away from agriculture toward services.3
* Labor Force: Due to a local skills gap, the industry relies on foreign workers from South Asia.3
* Gender Participation: Cultural factors initially caused a sharp decline in female labor force participation as resort work required living away from families, though rates have since recovered.3
* Taxation: The industry became a central focus for government revenue, with taxes levied on tourism goods and services.3