MATATO, GAM Warn Tourism Industry Facing MVR 7.7 Billion Loss

The ongoing regional conflict has caused major disruptions to the Maldives’ tourism industry, resulting in estimated losses exceeding $500 million (approximately MVR 7.7 billion), according to the Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouses Association of Maldives (NHGAM).

In a joint statement, the two associations said current arrival trends, booking patterns, and cancellations indicate a significant downturn in the tourism sector. They warned that the decline poses serious risks not only to tourism businesses, but also to employment, foreign currency earnings, and the broader Maldivian economy.

The statement noted that guesthouses and small- to medium-sized businesses are facing the greatest impact. Travel agents and tour operators are also experiencing heavy losses, raising concerns that some guesthouses and agencies may be forced to shut down.

According to industry estimates, tourist arrivals in March, April, and the ongoing month of May have dropped significantly.

To protect businesses, MATATO and NHGAM have proposed a crisis support mechanism to the government. Their recommendations include interest-free moratoriums, loan restructuring measures, and relief on taxes and fees. The associations also called for controls on airport fuel prices to help reduce operational costs.

The groups stressed that although the Maldives tourism industry has previously remained resilient during global crises, urgent and decisive action is now needed to overcome the current challenges.

“It is crucial to take immediate measures to safeguard businesses, protect jobs, and maintain confidence in the tourism industry,” the statement said.

Statistics show that tourist arrivals to the Maldives have declined by 5.4 percent since February this year. In addition, arrivals during the first nine days of May were down by 13 percent compared to the same period last year.