The Maldives Marketing and Public Relations Corporation (MMPRC) has been allocated MVR 154.2 million for tourism promotion in the 2025 budget, the same amount as in 2024. This stagnation in funding has raised concerns about the country’s ability to maintain and enhance its global presence as a premier travel destination.
Recent information disclosed through a Right to Information (RTI) request has revealed that the MMPRC currently has over MVR 42 million in unpaid client bills as of 30th June 2024. This financial strain raises further questions about the sufficiency of the current promotional budget and the organisation’s ability to address its financial commitments while ensuring effective marketing strategies.
Although the 2024 budget marked a 24% increase from 2023, the decision to keep the allocation unchanged for 2025 has sparked criticism from industry observers. Many argue that the Maldives’ growing tourism sector requires sustained investment to meet the challenges of increasing bed capacity and ensure high occupancy rates.
The average occupancy rate this year stands at 59.1%, significantly lower than historical highs of 75%. Analysts suggest that this decline highlights the need for a stronger and more strategic promotional campaign to attract more visitors and maximise the sector’s potential.
Despite the Tourism Minister’s pledge to allocate a percentage of TGST and Green Tax revenue for tourism promotion starting in 2025, the current budget does not reflect these plans. Critics have called for immediate reforms and additional funding to ensure that promotional efforts remain impactful and aligned with the Maldives’ ambitions in the global tourism market.
The stagnant budget allocation, combined with unresolved financial obligations, raises questions about the government’s commitment to supporting tourism promotion and underscores the need for a reassessment of funding priorities to safeguard the long-term success of the sector.
