Discover how Maldives guesthouses transformed local island tourism. History, pros and cons, travel tips and how to experience the Maldives beyond luxury resorts.
When I first arrived in the Maldives in 1999, guesthouses simply did not exist.
At that time, tourism in the Maldives followed a very strict model: visitors stayed on private resort islands, completely separated from local life. Travelers could visit inhabited islands for a few hours, but staying overnight was not allowed.
Coming from Tahiti, where small pensions and guesthouses already existed everywhere, the contrast was striking. In the Maldives, tourism was almost entirely limited to luxury resorts.
There were a few rare exceptions, mainly for surfers, who sometimes stayed on islands such as Thulusdhoo. But these places were extremely rare. You could probably count them on the fingers of one hand.
Everything changed a few years later.
The first official guesthouse opened in 2009
The Rise of Maldives Guesthouses and Local Island Tourism
In the late 2000s, the Maldivian government gradually opened the door to a new type of tourism : guesthouses on inhabited islands.
Opening tourism to local islands allowed Maldivians themselves to participate directly in the industry by running small hotels, restaurants and excursion services.
The result is a booming in the numbers of yearly visits
A small hotel on a local island, a new type of tourism in the Maldives
For decades, the tourism economy had been concentrated on resort islands operated mostly by international investors.
The idea was simple but transformative and the growth that followed has been remarkable.
Approximate figures illustrate how quickly this new sector expanded :
- Around 25 guesthouses in 2010
- About 486 guesthouses in 2019
- More than 820 guesthouses by 2026
In just over a decade, the Maldives created an entirely new segment of tourism.
Today, guesthouses can be found across many inhabited islands in the Maldives, from surf islands in North Male Atoll to remote communities in the far north and south of the country.
During my travels, I’ve visited islands where tourism barely exists, such as Utheemu, in the far north of the Maldives. Places like this show another side of the country, where island life continues quietly and the Maldives still feels wonderfully untouched.
You can discover more about the unique and beautiful island of Utheemu, one of the most historical local islands in the Maldives, in my article : At the heart of Maldives History : welcome to Utheemu, Northern Maldives
Utheemu island – 450 years of Maldives History
The rapid growth of tourism in the Maldives
The rise of Maldives guesthouses is closely linked to the rapid growth of tourism in the country.
In the 1990s, the Maldives welcomed around 200,000 visitors per year. As the destination became increasingly famous worldwide, tourism numbers grew dramatically.
200,000 tourists in the 90’s
–
1,800,000 in 2025
The country reached one million tourists in 2015, and by 2025 the Maldives welcomed around 1.8 million visitors.
As visitor numbers increased, the traditional resort-only model became more difficult to sustain alone. Opening tourism to guesthouses on local islands allowed the Maldives to diversify accommodation options while enabling local communities to benefit directly from tourism.
This shift created a completely new travel segment that continues to grow today.
What Staying in a Maldives Guesthouse Is Really Like
Staying in a guesthouse is very different from staying in a resort.
Instead of being on a private island, you stay inside a real Maldivian community, where daily life continues around you. Fishing boats leave the harbor in the early morning, children walk to school and local cafés open throughout the day.
For travelers curious about the culture of the Maldives, guesthouses offer a more immersive island experience.
Activities offered by Maldives guesthouses
Guesthouses often organize activities such as :
- snorkeling trips to nearby reefs
- diving excursions with local dive centers
- traditional fishing with Maldivian fishermen
- sandbank visits and island hopping
Some guesthouses even offer small spas or wellness services, something that was unheard of when local tourism first began.
small hotel on a local island
Pros and Cons of Staying in a Maldives Guesthouse
Staying in a guesthouse or a small hotel on a local island is without any doubt the best way to discover the Maldives. These accomodatiosn have opened the country to a wider range of travelers, but the experience naturally differs from staying in a luxury resort.
Understanding these differences is fundament if you want to live the Maldives dream as you imagine it.
Advantages of Maldives guesthouses and hotels on local islands
Guesthouses and hotels on local islands allow travelers to experience the Maldives at a lower accommodation cost while also discovering local island life. Visitors often appreciate the opportunity to interact with residents, explore the Maldivian way of life and experience the cultural side of the islands.
mosque on Ukhulas local island
Many guesthouses also provide access to snorkeling and diving trips, making it possible to explore the famous Maldivian marine life.
Things to keep in mind when you stay on a Maldivian local island
Local islands follow Maldivian regulations, which means some aspects of the stay differ from resorts.
Alcohol is not available on local islands
On local islands, alcohol is not served in guesthouses, cafes or hotels as they follow local laws. Travelers who wish to enjoy alcoholic drinks can sometimes go nearby “floating bars” or boats anchored offshore that serve alcohol. Guests are transported there by boat. You can also go to some neighboring resorts, but pay attention, it’s not common.
Beaches are public beaches
Guesthouses are located on inhabited islands, which means beaches are usually public beaches, which naturally feel different from the highly maintained beaches of private resorts.
Just think about French Polynesia, Greece or Thailand, hotel’s beaches are always cleaner than public ones, right ?
Fishing boats may be anchored nearby, locals may gather in the evening and the atmosphere is more relaxed and authentic.
But don’t get me wrong, local islands beaches are still beautiful. So beautiful, that two of them have even be named amongst the World’s 50 best beaches. If you want to know more about, read my article : Which Island Has the Best Beach in Maldives ?
But, just as everywhere else, they are part of everyday island life rather than carefully curated resort environments.
Dhigurah, in South Ari Atoll, is probably the most beautiful local island to stay in a guesthouse with some of the Maldives most beautiful beaches
Most guesthouse islands now have designated bikini beaches where visitors can swim and relax comfortably.
Excursions such as snorkeling trips or sandbank visits are usually organized by boat, rather than directly accessible from the beach.
Designated bikini beach for tourists at Maafushi local island
The Maldives Dream on a Smaller Budget
One of the main reasons guesthouses became popular is simple : price.
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& Hotels on local islands
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Luxury resorts remain the heart of Maldivian tourism, but guesthouses made the destination accessible to travelers with smaller budgets.
They allow visitors to experience the islands while spending less on accommodation, and often discovering a more local and cultural side of the Maldives.
Maldivian ladies, a mother and her daughter, weaving kajans on a local island
But it’s important to keep expectations realistic.
The Maldives remains a remote island nation, and transportation between islands, excursions and activities still represent a significant part of the travel budget.
If you want to understand what a realistic Maldives budget looks like, you can read this guide : The Maldives Dream on a Budget, Is It Really Possible?
A New Chapter in Maldives Tourism
Today, guesthouses represent one of the most significant evolutions in Maldivian tourism.
From almost none in the early 2000s to almost 1000 across the country today, they have opened the Maldives to a completely new type of traveler.
And yet, the original model of private resort islands still defines the iconic Maldives dream.
Both worlds now coexist, offering travelers two very different ways to experience the same extraordinary archipelago.
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