The tourism industry of the Maldives, - have we gone beyond ‘regulatory capture’?

Abstract

Since the introduction of the concept of ‘regulatory capture’ by George Stigler in 1971, there has been ample evidence, published globally, on how world class companies and powerful industries influence, and otherwise prompt regulators to act in a manner favorable to them. The Maldivian tourism industry is the biggest industry in the Maldivian economy. While few other industries like construction, transport, and communication have made modest contributions in the economy lately, much of the vigor and verve of these emerging industries too, depend on the vitality of the tourism industry. The tourism industry is not only the biggest industry, it is also the biggest employer and the steward of largest swaths of land allocated for economic activity. Even though this article is written as an opinion piece, appropriate evidence to aptly suggest ‘regulatory capture’ by the tourism industry is offered. Also because of its virtual dominance in the economy the question whether the industry might have gone beyond ‘regulatory capture’ will beraised.