Maldives tourism promotion budget: Enough to stay ahead of competition?

The Maldives, renowned for its pristine beaches and luxurious resorts, faces growing competition from other tropical destinations. Sri Lanka, Indonesia, Thailand, and even Saudi Arabia are aggressively courting tourists with special campaigns, visa cuts, and new resort developments. This raises a crucial question: Is the Maldives doing enough to maintain its position as a top tourist destination?

Tourism Minister Ibrahim Faisal acknowledged the need for increased promotional spending, stating that a lack of budget hinders the country's ability to attract more visitors. Starting in 2025, he promised to allocate a percentage of TGST or Green Tax revenue for tourism promotion, thereby boosting the budget of the tourism promotion agency, Maldives Marketing and Public Relations Corporation (MMPRC), to $20-25 million.

However, the 2025 budget presents a distinct picture. The MMPRC's allocation remains unchanged from the current year, at MVR 154.2 million. The MMPRC allocated the same amount for tourism promotion in 2024. The 2024 budget saw a 24% increase compared to 2023, reflecting the need for the Maldives to intensify tourism promotion efforts in the face of increased competition from other destinations recovering from the impact of Covid-19. However, industry experts argue that maintaining the same budget for 2025 is insufficient to address the intensifying competition.

Amjad Thaufeeq, vice-chair of the Destination Future Association, an advocacy group for tourism promotion, warns that the Maldives is not irreplaceable. Destinations like Zanzibar, Bora Bora, Seychelles, and Saudi Arabia's Red Sea project are vying for the same market share.

"The number of repeaters coming to the Maldives is relatively low," Amjad points out. This implies a significant improvement in marketing is necessary to sustain the Maldives' position and draw in new tourists.

He highlights the declining occupancy rates as a cause for concern. Despite an increase in tourist arrivals, the average occupancy rate this year stands at 59.1%, compared to 75% in 2014. Amjad attributes this to the unrestrained and unplanned increase in bed capacity.

Beyond the budget, Amjad emphasises the need for reform in the MMPRC. He calls on experienced professionals with tourism and marketing expertise to lead the organisation and maximise its efficiency.

"It is very important to bring professionals with tourism education and experience—and especially marketing experience—to the leadership and strengthen the management of the MMPRC," he says.

Amjad suggests a shift in promotional strategy, advocating for a greater focus on digital marketing, branding, and awareness campaigns. He recommends reducing participation in tourism fairs and allocating more resources to social media advertising, international PR, and collaborations with global brands.

"It is essential to invest in things like appointing ambassadors from popular and well-known celebrities in various fields,” Amjad adds.

The Maldives faces a challenging future in a crowded tourism market. Strategic reforms and a focus on maximising the impact of marketing efforts must accompany increased promotional spending. The government and the tourism industry need to work together to ensure the Maldives remains a top destination for years to come.