Maldives tourism industry groups have called for urgent government intervention after estimating that losses to the sector have exceeded USD 500 million since March 2026.
The Maldives Association of Travel Agents and Tour Operators and the National Hotels and Guesthouses Association of Maldives said the decline in tourist arrivals, weaker booking patterns and cancellations are placing growing pressure on the industry. The associations said the downturn is affecting businesses, employment, foreign exchange earnings and wider economic stability.
The statement follows official tourism figures showing a significant fall in arrivals during March and April, with continued weakness into May. Industry stakeholders have also raised concerns that forward bookings from several key source markets remain under pressure.
The impact is expected to be especially severe for local small and medium-sized enterprises, guesthouses, travel agents, tour operators and other tourism-related businesses. The associations warned that many local guesthouses and travel agencies could go out of business without targeted support.
MATATO and NHGAM called on the government, relevant authorities, financial institutions and tourism stakeholders to introduce immediate crisis support measures to stabilise the industry and protect local businesses.
The proposed measures include special loan facilities and emergency financing schemes for local tourism businesses, particularly guesthouses and SMEs that may not meet traditional banking requirements. The associations also called for interest-free moratoriums, loan restructuring support, tax deferrals and fee waivers to help businesses remain operational during the downturn.
They also urged the introduction of accessible stimulus financing with practical collateral requirements, allowing local operators to retain employees and continue operations. In addition, the associations called for intervention to address rising operational costs, including concerns over airport fuel pricing and other business expenses affecting competitiveness.
The statement also highlighted the pressure facing guesthouse operators and SMEs from rising construction material prices, which the associations said are affecting ongoing tourism development and expansion plans.
MATATO and NHGAM said the Maldivian tourism industry has shown resilience through global crises over the years, but warned that the current situation requires coordinated and decisive action. They reaffirmed their willingness to work with the government, financial institutions and industry stakeholders to support recovery and maintain the long-term competitiveness of the sector.
