Guesthouse business is a major component of the tourism sector which has expanded drastically since its introduction to Maldives. Tourism, being the main backbone of the country's economy, has flourished throughout the years through dedication and tireless effort of government authorities and private stakeholders alike. Tourism industry in itself is always evolving with new facets and variabilities introduced in quick succession, which should be incorporated into any local tourism sector in order to make it a success. Maldives, being a prime luxury destinations with high potential for growth, has been adding more facets of the tourism industry into the local sector.
One of the success stories of the country's tourism sector is the guesthouse business, which has thrived in building the economic and social fabric of local islands. Out of the numerous islands where guesthouse business was launched, Rasdhoo Island in Alifu Alifu Atoll has prospered to become the epitome for guesthouse business model. Rasdhoo Island, with a population of over one thousand residents, ventured into the business in 2011. Since the inception of guesthouse business, the island now has 25 guesthouses, with a total bed capacity of 150. Seven more guesthouses are being developed in the island, according to Rasdhoo Island Council.
Owners of guesthouses in Rasdhoo agree that there is a huge demand for their properties, which is developed to modern standards, especially during tourist season. They added that there is a high demand for guesthouses during local holidays as well. Initially the startup process is slow and difficult, and the profit haul rather small, but profit out of these businesses expand gradually, according to guesthouse businesses in Rasdhoo. They note that guesthouse business is lucrative and gives them a good livelihood.
While tourism has brought new life to the islands social and economic status, many of the residents are trying to introduce more services for tourists in the island.