[InKunming--Sister Cities]  Promotion of guest house tourism in the Maldives will increase charter flight tourism and revenue, one of the country's largest industry groups supporting the government move said on Tuesday.

Maldives on Tuesday kicked off plans to diversify its tourism industry with the introduction of guest houses to attract moderately affluent guests and improve revenue.

The government's first guest house island will be on Thumburi, in Laamu atoll.

The Maldives Association of Travel and Tour Operators (MATATO) has endorsed the project, urging its members to take part in the government's plans.

"MATATO believes this will help target mass charter flights, rather than FIT (fully independent traveler) or small groups, paving the way to bring back major charter operators to the Maldives," said the group which represents over 50 local travel agents and tour operators.

The guest house island concept aims to diversify the tourism industries to include small and medium enterprises, without encroaching on inhabited islands.

While guest house tourism on populated islands has grown rapidly in recent years, some in the industry have expressed concern that it may damage the high-end resort image of the Maldives.

The project, which will involve the development of a 2,100-bed resort run by multiple local businesses, was described as " communal tourism development" or "vertical tourism" by Maldives President Abdulla Yameen.

The president also revealed that further guest house island projects would be carried out within the special economic zones to be established under proposed legislation.

Only Maldivians will be permitted to invest in such projects, with priority given to those not yet involved in the industry.

Maldives tourism grew by 10 percent in the first quarter of 2014, according to the central bank, helped by a boom in Chinese tourists who have flocked to its pristine beaches.

Chinese tourists accounted for 27 percent of guests during the first quarter of 2014.

According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year, a 44.5 percent increase from the previous year and accounting for 29.5 percent of all tourist arrivals in 2013.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.