MATATO, NHGAM Warn of Industry Collapse as Tourism Losses Hit USD 500 Million

Two major tourism industry associations have called on the government to urgently intervene as losses in the Maldives tourism sector surpass USD 500 million.

MATATO and NHGAM made the call in a joint statement this week. They cited a sharp drop in tourist arrivals in March and April. The decline has continued into May.

Forward bookings from key source markets remain weak. Cancellations are mounting. Industry stakeholders say they are facing serious financial and operational pressure.

Local businesses are bearing the worst of the damage. Guesthouses, travel agents, and tour operators are struggling to survive. The associations warned that many could permanently close if action is not taken soon.

MATATO and NHGAM called on the government, financial institutions, and tourism authorities to introduce emergency measures immediately. Their demands include special loan facilities and emergency financing for small businesses unable to meet standard banking requirements. They also called for interest-free moratoriums, loan restructuring, tax deferrals, and fee waivers.

The associations further demanded affordable financing options with realistic collateral terms. They also raised concerns over high airport fuel prices and rising business costs that are hurting the industry's competitiveness.

Guesthouse operators are facing an additional burden. Uncontrolled construction material prices are stalling tourism development projects across the country.

Both associations acknowledged the industry's history of resilience. The Maldives has recovered from the 2004 tsunami, the COVID-19 pandemic, and other major crises. But they stressed that the current situation demands faster and more decisive action.

MATATO and NHGAM said they remain committed to working with the government and all stakeholders on a recovery plan. They warned, however, that the window for action is narrowing.

The government has not yet responded publicly to the statement.