Tourism Minister Mohamed Ameen yesterday expressed skepticism regarding claims by industry associations that the Maldives' tourism sector has suffered a USD 500 million loss since the beginning of the Middle East conflict.
Speaking at a press conference, Ameen said that the government is monitoring the impact on the tourism industry. However, he did not disclose the figure that the government believes represents the actual loss to the sector.
"Any number can be cited. We do not have any calculations yet [confirming a loss of that magnitude]. Our ministry is currently investigating the origin of this figure, and several departments are already looking into it," Ameen said.
The claim that the tourism sector has lost hundreds of millions of dollars since the conflict began on February 28 was made in a joint statement by the Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouses Association.
The estimated loss to the industry was calculated based on prior booking data. The two associations predict that the total loss to date could exceed USD 500 million.
The statement warned that if the tourism downturn continues, businesses could face bankruptcy and hundreds of jobs could be lost. It called on the government to provide support to the tourism sector to prevent such an outcome.
The demands made by MATATO and the Hotels and Guesthouses Association include
- Issuing special loans for small businesses and guesthouses within the tourism sector.
- Implementing a moratorium on existing loan repayments, restructuring loans, and temporarily suspending fees.
- Easing the eligibility criteria for loans issued to small businesses.
- Addressing rising costs, seeking a solution for the increase in airport refueling prices.
- Mitigating the impact on guesthouses and small businesses caused by the rising cost of construction materials.
The joint statement further noted that the tourism sector has recovered from previous crises and expressed confidence that it could do so again.
"However, organized and swift action must be taken in this situation to protect businesses, safeguard jobs, and maintain confidence in the tourism industry," the statement read.
The two associations also expressed their readiness to collaborate with the government, financial institutions, and industry stakeholders to overcome the challenges facing the tourism sector.
