As the tourism industry, which faced a loss of over USD 500 million due to the impact of the war in the Middle East, has appealed for government assistance, the government is now looking into ways in which they can extend support, President Dr Mohamed Muizzu announced today.
In his weekly press briefing held this morning, the President said in response to a question from a reporter that the Cabinet Committee responsible for war mitigation efforts is currently reviewing the appeal for support from the tourism industry. The committee is currently in discussion with tourism industry stakeholders, he added.
“After that, we will know what measures can be taken. The ministerial committee is currently working on it,” President Muizzu stated.
A statement issued yesterday from the National Hotels and Guest Houses Association of Maldives (NHGAM) and the Maldives Association of Travel Agents and Tour Operators (MATATO) stated that the industry has faced immense loss since March this year.
Following the closing of air space in the Middle East due to the war, the number of tourist arrivals to Maldives saw a marked decline in March and April, showing a decrease of about 15 to 20 percent compared to the previous year.
As per the statement by NHGAM and MATATO, there is a possibility that bookings from key source markets will see a further drop. This has presented challenges to those in the tourism industry to sustain their businesses, the statement reads.
The two associations stated that local Small and Medium Enterprises (SMEs), guesthouses, travel agents, and tour operators, who play a crucial role in the tourism sector, have become financially weakened to the point where they may have to cease operations.
“MATATO and NHGAM together call upon relevant government authorities, financial institutions, and those involved in the tourism business to hasten the stabilization of the industry and the protection of Maldivian businesses, and before a disaster strikes, to take swift measures and to plan and introduce ways to quickly assist businesses,” the statement said.
The Guesthouse Association and MATATO stated that urgent measures must be taken in the coming days to improve the current situation. The statement noted that the government and financial institutions must provide help as soon as possible by providing interest-free moratorium loans, assisting in the restructuring of existing loans, deferring tax payments, and waiving fees and quota fees.
