Unified Strategy: Maldives Tourism Bodies Collaborate for Greater Impact

The Ministry of Tourism and the Maldives Marketing and Public Relations Corporation (MMPRC) have announced a new, closer collaboration to develop the tourism sector. This announcement was made by Mohamed Khaleel, Advisor to the President on Tourism Development, during a press conference held by both entities on Thursday.

Khaleel emphasized that the Ministry and MMPRC had previously operated independently, which often resulted in misaligned policies and hindered progress. "I am very pleased that today, MMPRC and the Ministry of Tourism are working much closer together than ever before," he said, highlighting that this unified approach is a positive step forward.

Khaleel pointed out that participation from all stakeholders in the tourism sector is crucial for addressing industry challenges. One of the biggest issues currently facing the sector is a decline in revenue, despite an increase in tourist arrivals. This revenue decline is primarily due to low room rates in resorts.

"The state is a significant beneficiary of the tourism industry, as direct revenue from the industry goes to the state," Khaleel explained. He urged the Tourism Ministry and MMPRC to prioritize boosting demand for the Maldives and increasing tourist arrivals. Additionally, he called for policies to raise the average daily room rate.

Khaleel illustrated the issue with an example, stating, "No matter the increase in arrivals, if we reduce room rates, the state will receive less revenue. Tax revenue is not increasing because a room sold for USD 100 is being sold at a discounted rate of USD 80."
With this new collaboration, the Ministry of Tourism and MMPRC aim to work as one team to more effectively achieve their objectives, ultimately benefiting the Maldives' tourism industry and its economy.