MATATO and NHGAM Call for Urgent Crisis Support as Arrivals Decline

The Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouses Association of Maldives (NHGAM) have jointly called on the Government, relevant authorities, financial institutions and tourism stakeholders to introduce urgent crisis support measures to stabilise the tourism industry and protect local businesses.

In a joint press release, the associations expressed concern over the continued decline in tourist arrivals and the growing economic pressure on the Maldivian tourism sector.

They stressed the need for special loan facilities and emergency financing schemes tailored for local tourism businesses, particularly guesthouses and small and medium enterprises (SMEs) that face difficulties accessing traditional banking services.

The associations also called for interest-free moratoriums, loan restructuring support, tax deferrals and fee waivers to help businesses withstand current financial challenges.

They further urged the introduction of accessible growth stimulus financing with practical collateral requirements to help operators remain in business and retain employees.

MATATO and NHGAM highlighted the need for immediate intervention to address rising operational costs, including concerns over airport fuel pricing and increasing expenses affecting competitiveness.

They also raised concerns over escalating construction material costs, which they said are impacting guesthouse operators and SMEs involved in ongoing tourism development and expansion projects.

The associations said the Maldives tourism industry has shown resilience through previous global crises, but added that the current situation requires swift, coordinated and decisive action to protect businesses, jobs and confidence in the sector.

They reaffirmed their willingness to work with the Government, financial institutions and industry stakeholders to support recovery efforts and ensure the long-term sustainability of tourism in the Maldives.

Tourist arrivals to the Maldives declined in the first nine days of May 2026, reflecting both the start of the low season and broader global pressures on travel demand.

According to data from the Ministry of Tourism and Civil Aviation, the country recorded 42,533 arrivals between 1 and 9 May 2026, a 13.6 percent decrease compared with 49,246 arrivals during the same period in 2025.

The decline follows a slowdown in March and April, with arrivals falling from 247,722 in February to 161,259 in March and 147,600 in April. April 2026 arrivals were also lower than the 198,322 recorded in April 2025.

While seasonal trends typically contribute to lower arrivals during this period, industry stakeholders have pointed to external factors, including the ongoing Middle East conflict, which has affected travel sentiment, air connectivity and operational costs in parts of the global tourism market.

Based on current trends, booking patterns and cancellations, the tourism sector has already recorded estimated losses exceeding USD 500 million since March 2026.

The downturn has raised concerns across the industry, particularly among local SMEs, guesthouses, travel agents and tour operators, which form a significant part of the tourism value chain. Stakeholders warn that continued pressure could force some businesses to scale down or cease operations if conditions do not improve.