President Dr. Mohamed Muizzu has announced that the administration is currently evaluating various avenues to provide the assistance requested by tourism industry associations, following a significant financial downturn exceeding $500 million. This decline in the Maldives’ tourism sector is attributed to the ongoing conflict involving Israel and the United States.
A specialized ministerial committee has been established to conduct a comprehensive study of the situation and engage in consultations with industry stakeholders. According to reports from tourism associations, tourist arrivals have seen a notable decrease of 15% to 20% compared to the previous year. This downturn has placed substantial financial strain on small and medium-sized enterprises (SMEs) within the sector. Consequently, these businesses have urged the government to implement relief measures, such as loan forgiveness programs and the deferral of tax payments, to help mitigate the economic impact.
