Thursday, September 19, 2024 The Maldives’ economy remains secure and is not at risk of bankruptcy, according to Mohamed Khaleel, Presidential Tourism Advisor. Speaking at the GM Forum, organized by Hotelier Maldives at Crossroads, Khaleel addressed concerns about the nation’s financial future, including fears of defaulting on foreign debt. He emphasized the resilience of the Maldives’ economy, citing the strength of the tourism industry as the driving force behind its stability.
Khaleel responded to inquiries from international media, assuring them that the Maldives is not at risk of defaulting on its loans. “Two days ago, a foreign media outlet asked me about the potential for bankruptcy. I reassured them that the Maldives will not default on its loans, and that our tourism industry will continue to thrive,” Khaleel stated.
He pointed to the country’s economic recovery from the COVID-19 pandemic as proof of its ability to overcome challenges. He emphasized that the Maldivian government is working diligently to stabilize the economy and boost investor confidence by implementing key laws and policies. These measures include reducing recurrent expenditures and cutting unnecessary spending in sectors like healthcare.
Additionally, Khaleel highlighted the tourism industry’s readiness to collaborate with the government on addressing foreign exchange challenges. “There are no issues with paying taxes like withholding tax in dollars. The tourism industry is prepared to support this, and the foreign exchange issue will be resolved when pensions for those paid in dollars are also issued in dollars,” he explained.
Marketing and Expanding Tourism Markets Khaleel also called for greater promotion of the Maldives as a premier tourist destination, urging the government to invest in destination marketing. He stressed that effective marketing could significantly increase occupancy rates and daily room revenue. “Currently, the Maldives has an average occupancy rate of 50%.
By improving our marketing efforts and raising that to 60%, profits could increase by 10%,” he said, noting that low occupancy rates are causing resorts and hotels to reduce prices, which in turn decreases overall revenue. The post-pandemic expansion into new tourism markets, particularly the United States, was highlighted as a major success. “Before COVID-19, the U.
S. was not a key market for Maldivian tourism. Now, it’s one of our most visited markets,” Khaleel said, underscoring the importance of continuing efforts to attract high-spending tourists.
A Stable Future Through Tourism In closing, Khaleel reiterated the government’s commitment to promoting the Maldives as a top global tourist destination. He emphasized that the continued growth of the tourism industry is vital to maintaining the country’s economic stability and prosperity..
