MITDC dissolved; MMPRC urged to achieve self-sufficiency
Majlis has recommended that the MMPRC take steps to cut costs and work towards financial independence
Majlis has recommended that the MMPRC take steps to cut costs and work towards financial independence
The People’s Majlis has recommended that the Maldives Marketing and Public Relations Corporation (MMPRC) take steps to cut costs and work towards financial independence.
The State-Owned Enterprises (SOE) Committee of the People's Majlis reviewed the status of both MMPRC and Maldives Integrated Tourism Development Corporation (MITDC) and compiled a report.
The committee has determined that MMPRC heavily relies on state funds for conducting major campaigns and loan repayments. As such, they have advised to reduce expenses and find ways to increase revenue to make it a self-sufficient company.
The committee's report was passed unanimously with 62 votes at Wednesday's parliamentary sitting.
According to the SOE Committee's report, MMPRC has not made a profit since 2020 and lacks sufficient funds to run campaigns. The committee stated that MMPRC is at risk of bankruptcy.
MMPRC is currently running 25 different campaigns, with the most expensive being a partnership with Liverpool FC, a top-tier English Premier League club. The campaign, running from 13 March 2024, to 31 May 2028, has a budget of MVR 20.6 million allocated by the corporation.
In addition to this, the corporation spent MVR 17.6 million on the Arabian Travel Market held in Dubai from April 28 to May 1. The committee concluded that the main reason for the risk of bankruptcy is the MVR 203 million loss accumulated during the former administration of the now-opposition Maldivian Democratic Party (MDP).
It was further decided to dissolve the Maldives Integrated Tourism Development Corporation (MITDC), a fully government-owned entity established in 2016, and transfer its tourism promotion responsibilities to the Maldives Marketing and Public Relations Corporation (MMPRC). The government had announced the decision to dissolve MITDC in September 2024, and the parliament has now approved moving forward with the dissolution process accordingly.
In addition to this, the approved report stated that once the dissolution of MITDC is complete, a special report should be sent to the SOE Committee.
