For years, Velana International Airport has struggled to keep up with the country’s growing passenger numbers. That changed on 26 July 2025, with the inauguration the airport’s new international Terminal 1. Covering 72,000 square metres, the facility is the largest ever built in the Maldives and triples capacity to 7.5 million passengers annually. The Administration has framed the development as a decisive step in easing congestion and preparing the Maldives for stronger growth in tourism and trade.

The terminal itself represents a major upgrade in passenger services. It introduces 47 check-in counters, six self-service kiosks, and 24 seaplane check-in desks. A high-speed baggage system now processes up to 3,000 bags an hour, supported by real-time tracking. Twelve boarding bridges fitted with ground power and cooling systems make aircraft operations more efficient, while immigration has been expanded with 20 departure counters, including six e-gates, and 28 arrival counters with seven e-gates. To improve passenger flow, the terminal also includes 41 lifts, 14 escalators and four travellators, easing movement through the building during busy periods.

With the new facilities in place, airlines have already begun shifting their operations. National carrier Maldivian was the first to relocate, followed by Air Arabia, beOnd and FitsAir. Maldives Airports Company Limited (MACL) has confirmed that all 34 international carriers currently serving VIA are expected to transfer in the following weeks. This transition is also expected to significantly expand route options, particularly with long-haul services from Europe, the Middle East and Asia.

Behind the new terminal lies one of the largest infrastructure investments in Maldivian history. Between 2016 and 2025, concessional loans worth USD 457 million were secured to finance the project. The Kuwait Fund provided USD 100 million, the Saudi Fund for Development contributed USD 217 million, the OPEC Fund for International Development added USD 50 million, and the Abu Dhabi Fund for Development supplied USD 90 million. These investments funded not only the terminal itself but also cargo, seaplane and fuel facilities, ensuring the wider airport could meet modern aviation standards.

Tourism authorities say the impact of the new terminal will be immediate and far-reaching. Tourism already contributes more than a quarter of GDP, and the added capacity is expected to drive visitor growth, raise foreign exchange earnings and create jobs across multiple sectors. By cutting waiting times, improving passenger experience and attracting more international routes, the Maldives is better positioned to compete for a greater share of the global travel market.

The project also reflects continuity across administrations since 2016. President Dr Mohamed Muizzu, since assuming office, has accelerated the final stages which included opening the cargo complex, fire station, hydrant system and fuel farm before presiding over the completion of Terminal 1.

Speaking at the inauguration ceremony, President Dr Muizzu said opening the terminal on Independence Day was intentional, symbolising national pride as well as economic progress. He described the project as a milestone of collective effort and sustained partnerships, while underlining his Administration’s determination to bring the development to completion.

For the Maldives, the new terminal is more than a building. It represents a new scale of ambition: strengthening the economy’s backbone, enhancing the country’s global reputation, and ensuring that tourism, the lifeblood of the nation, continues to grow in an increasingly competitive world.