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.
