MATATO, NHGAM urge govt action as Maldives tourism losses exceed $500 million
The Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouses Association of Maldives (NHGAM) have expressed deep concern over the ongoing decline in tourist arrivals and the severe economic impact now affecting the Maldivian tourism industry.
Based on current arrival trends, booking patterns, and cancellations, the Maldives tourism sector has already suffered losses estimated at over USD 500 million since March 2026. The continued downturn poses a serious threat to businesses, employment, foreign exchange earnings, and the overall stability of the national economy.
Official statistics show significant declines in arrivals during March and April 2026, with continued weakness into May. Forward bookings across several key source markets remain under pressure, while industry stakeholders continue to face growing operational and financial challenges.
The situation is particularly difficult for local SMEs, guesthouses, travel agents, tour operators, and tourism-related businesses that form the backbone of the Maldivian tourism economy. Many local Guesthouses and Travel Agencies might go out of business if not addressed.
MATATO and NHGAM jointly call on the Government of Maldives, relevant authorities, financial institutions, and tourism stakeholders to urgently introduce immediate crisis support measures to stabilize the industry and protect local businesses.
The associations emphasise the urgent need for:
- Special loan facilities and emergency financing schemes tailored for local tourism businesses, particularly guesthouses, and SMEs currently underserved by traditional banking requirements.
- Interest-free moratoriums, loan restructuring support, tax deferrals, and fee waivers to assist businesses in surviving the ongoing crisis period.
- Accessible growth stimulus financing with practical collateral requirements to ensure local operators can remain operational and retain employees.
- Immediate intervention to address escalating operational costs, including concerns relating to airport fuel pricing and rising business expenses impacting competitiveness
- Support mechanisms for guesthouse operators and SMEs struggling with uncontrolled increases in construction material prices, which are severely affecting ongoing tourism development projects and expansion plans.
MATATO and NHGAM further stress that the Maldives tourism industry has demonstrated resilience through numerous global crises over the decades. However, the current situation requires swift, coordinated, and decisive action to safeguard businesses, protect jobs, and maintain confidence in the Maldives tourism sector.
The associations reaffirm their commitment to working collaboratively with the Government, financial institutions, and industry stakeholders to support recovery efforts and ensure the long-term sustainability and competitiveness
of Maldivian tourism.
