Mismanagement of the country's economy must be addressed: MATATO
MATATO called on the administration to take immediate action to safeguard the economy and rectify the directive
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The Maldives Association of Travel Agents and Tour Operators (MATATO) has expressed concerns over the administration's economic policies.
MATATO released a statement where they strongly opposed the administrations management of the country's economy.
The statement read that the association strongly opposes the mismanagement of the Maldivian economy, as represented by the recently passed legislative amendment, ratified by the President, increasing the Goods and Services Tax (GST) and the Tourism Goods and Services Tax (TGST).
MATATO states that these changes articulated in the government circular will have significant negative impacts on the tourism industry. They also stated that these changes will have a disproportionally negative impact on Small and Medium Enterprises (SMEs) of the country.
They went on to say that the association has engaged in extensive discussions with industry stakeholders to asses the burden of this change on the existing bookings, cancellations, operators and properties. As such, the association noted that the policy changes required by this abrupt move will see the burden of absorbing resulting loses overwhelmingly on domestic stakeholders in the first quarter of 2023. MATATO noted that this will result in a loss of over USD 50 million for the tourism industry.
They also stated that this will affect the Maldivian workers in the industry. As such they highlighted that the tourism employees will see an estimated amount of nearly MVR 2,000 reduction in service charge as a result of these changes.
MATATO also disclosed that the association has learned that many of the foreign tour operators are expressing concern over the changes brought.
MATATO called on the administration to take immediate action to safeguard the economy and rectify the directive.
