A recent report by MATATO, the association of Maldivian tour operators, has called upon the government to boost investments in infrastructure development and foster sustainable practices for ensuring long-term viability of the tourism industry in the country, besides involving the travel trade in a more significant manner.

The Maldives Association of Travel Agents & Tour Operators (MATATO) has urged the government to involve the travel trade in Maldives in a greater way for the future development of tourism industry in the country.

In its latest report, Tourism and Finance 2022-23, MATATO, that was set up in 2006, says that the tourism industry has been a cornerstone of economic growth, providing employment opportunities and contributing, directly and indirectly to 74 pc of the country’s gross national income. 

MATATO adds that to understand the current state of the Maldives tourism sector, it conducted a comprehensive survey in June 2023, gathering insights from over 2,000 participants representing various sectoral stakeholders and which have been used in publishing the report.

On the current economic situation and challenges, MATATO says that the survey respondents were asked to rate the current economic situation in the Maldives, with 72 pc describing it as ‘fair’. It adds that this rating suggests a moderate economic climate, but it also highlights the presence of challenges. 

‘‘One of the significant challenges is the country’s heavy dependence on tourism revenue, making it vulnerable to external shocks such as global economic downturns or natural disasters. This over-reliance on a single industry underscores the urgent need for economic diversification to mitigate risks and ensure long-term economic stability,’’ it adds. 

In terms of the Impact of Covid-19 on the tourism industry, the survey says that surprisingly, the majority of respondents reported that they believed that the post pandemic arrivals have bounced back, inspite of the Maldives not having yet reached pre-pandemic arrivals. It says that this could be explained by the low expectations of the industry, coupled with the promotion of the Maldives by the World Bank and others as having the fastest economic recovery. 

MATATO says that while the country managed to keep Covid-19 cases relatively low, the pandemic had broader implications for the global travel industry. It adds that the survey data invites further analysis to understand the actual extent of the pandemic’s impact on the Maldives tourism sector and its potential lessons for building resilience against future disruptions.

The report says that a crucial finding from the survey was that 59 pc respondents observed ‘no change’ in tourism-related investments recently. It says that to promote sustainable growth, the Maldives needs to create an investment-friendly environment, encourage private sector participation in tourism infrastructure development, and offer financial support to businesses in the industry.

In terms of sustainable development, MATATO says that while the Maldives is renowned for its natural beauty, the survey’s key findings indicate that the respondents are unaware of recent government-led developments in eco-friendly initiatives in the tourism sector. The report says that sustainable tourism practices, including responsible waste management and conservation efforts, can not only attract eco-conscious travellers but also protect the fragile ecosystem that draws visitors to the Maldives. Fostering sustainable practices is crucial for the industry’s long-term viability and preserving the country’s unique natural resources.

MATATO says that a majority of respondents perceived the state of tourism infrastructure to be ‘poor’. It says that airports, seaports, and roads, play a crucial role in ensuring smooth travel experiences for tourists. Investment in modernising and expanding infrastructure can lead to increased visitor satisfaction, encourage repeat visits, and facilitate the growth of new tourism markets. 

The report adds that participants acknowledged the importance of collaboration between the public and private sectors for long-term sustainability and growth and popular opinion selecting it as a contributing factor. Additionally, the survey highlighted concerns about the lack of a skilled workforce in the industry, emphasising the need for quality training and education programs to enhance the professionalism of tourism professionals. 

MATATO says that most participants noticed ‘significant changes’ in the source markets for tourists visiting the Maldives in recent years and calls for diversifying target markets and creating tailored marketing strategies to attract a broader range of visitors.

The report says that by embracing these opportunities and addressing challenges, the Maldives can continue to be a premier global tourist destination, while preserving its natural beauty and cultural heritage for generations to come. Policymakers, industry stakeholders, and the local community must work together to chart a sustainable and prosperous path for the future of the Maldives tourism industry

‘‘In the face of these challenges, the Maldives must explore economic diversification, reduce government expenditure, enrich infrastructure, and nurture collaboration between the public and private sectors. By embracing these strategies, the nation can chart a sustainable and prosperous course for its tourism and finance sectors, while preserving its natural beauty and cultural heritage. Policymakers, industry stakeholders, and the local community must collaborate to secure a promising future for the Maldives,’’ Mohamed Bassam Adam, Treasurer of MATATO, tells India Outbound.