Although tourism industry has requested government assistance citing projected losses of $500 million, government indicates it has no intention of providing aid based on that specific figure
The Maldives Association of Travel Agents and Tour Operators (MATATO) and the Guesthouse Association of Maldives have appealed for government intervention to safeguard the tourism industry, which faces a projected loss of $500 million due to a significant downturn. Highlighting the severe challenges confronting small and medium-sized enterprises, the associations have called for financial relief measures, including loan moratoriums and tax concessions, to sustain the sector.
Minister Mohamed Ameen speaks during a press conference held at the President's Office on May 19, 2026. | President's Office
Tourism Minister Mohamed Ameen has stated that the government does not intend to provide direct financial assistance in response to industry concerns over a potential $500 million loss, despite requests from various associations for state intervention.
The Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouse Association of Maldives (NHGAM) have recently expressed grave concern over the declining number of tourist arrivals. The associations have called for urgent government intervention, citing significant damage to the national economy and the tourism industry.
In a joint statement, the two organizations revealed that based on current trends in tourist arrivals and booking cancellations, the Maldives' tourism industry has incurred losses exceeding $500 million since March 2024.
Speaking at a press conference held at the President's Office on Tuesday, the Minister stated that it remains entirely unclear how industry associations calculated a projected loss of over $500 million to the tourism sector. The Minister further noted that relevant departments within the Ministry have been instructed to review the methodology behind these figures. The Minister added that while the government may not provide assistance specifically based on those disputed figures, it remains committed to mitigating the broader economic impact and providing necessary support to the public.
"Any figure could potentially appear. These are not numbers that we endorse. The government is not working to provide assistance based on those figures," the Minister said.
Statistics indicate a significant decline in tourist arrivals to the Maldives during March and April 2026. This downturn persisted through May, with future bookings from the country's primary source markets also remaining notably low. Industry associations have highlighted that this trend poses severe risks to the nation's foreign exchange reserves, employment levels, and overall macroeconomic stability.
