President Dr Mohamed Muizzu has said the government is reviewing possible support measures for the tourism industry after industry associations reported losses exceeding USD 500 million linked to the conflict in the Middle East.
Speaking during the weekly media briefing at the President’s Office, President Dr Muizzu said the matter is being examined by the ministerial committee established to assess issues arising from the conflict. He said the committee is also consulting tourism industry stakeholders before determining what form of assistance may be possible.
The remarks follow a joint statement issued by the National Hotels and Guesthouses Association of Maldives (NHGAM) and the Maldives Association of Travel Agents and Tour Operators (MATATO), which said the tourism sector has faced substantial losses since March.
According to the associations, tourist arrivals to the Maldives declined by 15 to 20 percent in March and April compared with the same period last year. They also warned that forward bookings from key source markets could weaken further, creating additional pressure on businesses across the sector.
The concerns are particularly acute for small and medium-sized enterprises linked to tourism, including guesthouses, travel agencies, and small tour operators. NHGAM and MATATO said many such businesses are facing financial strain, with some at risk of closure if immediate assistance is not provided.
The associations called on government authorities, financial institutions, and tourism industry stakeholders to introduce urgent measures to stabilise the sector and protect local businesses. Their proposals include interest-free loan moratoriums, restructuring of existing loans, tax payment deferrals, and the waiver of fees such as quota fees.
The government’s review places the tourism sector’s immediate financial difficulties within a wider economic challenge for the Maldives. Tourism remains the country’s main source of foreign currency earnings, employment, and private sector activity. Any sustained fall in arrivals or bookings could therefore have consequences beyond resorts and guesthouses, affecting transport operators, suppliers, agencies, and other businesses that depend on visitor demand.
While the government has not yet announced specific relief measures, President Dr Muizzu’s comments indicate that policy options are being considered in consultation with the industry. The outcome will be closely watched by tourism businesses, particularly smaller operators with limited reserves to absorb a prolonged slowdown.
