The Maldives Marketing and Public Relations Corporation (MMPRC) has responded to heightened scrutiny over its financial performance, after audit and parliamentary reports revealed cumulative losses of more than MVR 200 million across four years. In a statement issued today, the agency defended its current direction while attributing some of the financial strain to legacy issues and past decisions.
Between 2020 and 2023, MMPRC posted total net losses amounting to MVR 203.9 million. The most severe was recorded in 2021, with a deficit of nearly MVR 142 million. Despite these numbers, MMPRC stressed that much of the financial pressure stems from obligations inherited from earlier administrations, including unresolved island lease transactions and currency-related liabilities.
The corporation also pointed to debt servicing as a significant strain on its financials. It continues to repay a 15-year loan taken from Maldives Ports Limited, with over MVR 78 million still outstanding. Officials indicated that loan repayments and other financial obligations have limited room for operational flexibility and contributed to the negative balance sheets reported during the audited period.
In its statement, MMPRC said the findings reflected structural and procedural shortcomings that have been in place for over six years. Reforms initiated over the past year, however, include cutting recurrent expenses by over 10 percent and restructuring global PR contracts. The number of international agencies under retainer has been reduced from 21 to 6, selected based on performance, resulting in savings exceeding MVR 4 million.
The organisation also reported a shift in budget priorities. Spending on trade shows and exhibitions has been trimmed from 80 percent of the marketing budget to 34 percent, while maintaining presence at key industry events.
Currently, MMPRC is running 21 international campaigns, including co-marketing partnerships with leading airlines and travel operators worth more than MVR 10 million. All top ten source markets are showing positive growth compared to the previous year. Notably, tourist arrivals from India recovered from a 39 percent drop last year to a 4 percent uptick this year.
The agency highlighted other encouraging signs, such as record tourism revenue in 2023, exceeding USD 4.7 billion, and early 2025 data showing the fastest climb to one million tourist arrivals yet.
Looking ahead, MMPRC plans to launch a new high-profile campaign with Liverpool Football Club and expand its Global Ambassador Programme. The next phase will involve recruiting local ambassadors, engaging Gen Z influencers, and strengthening media partnerships.
With the imminent opening of the new terminal at Velana International Airport, the corporation is optimistic about increased airline capacity and collaborative promotions to attract more visitors.
MMPRC’s audited financials for 2024 are expected at the upcoming Annual General Meeting. The agency claims these will reflect progress toward financial stability and improved governance.
Despite criticism, MMPRC insists that consistent investment in tourism marketing is vital for a country as reliant on the sector as the Maldives, especially when regional competitors benefit from full state backing.
