MMPRC attributes financial strain to losses under previous govt
The corporation noted that since last year, efforts have been made to improve operational efficiency and reduce expenditure.
The Maldives Marketing and Public Relations Corporation (MMPRC) has stated that its current financial challenges are primarily due to losses incurred over the last four years under the previous administration.
In a statement released on Thursday, the MMPRC responded to media reports on a recent parliamentary State-Owned Enterprises (SOE) Committee report, which highlighted the company’s worsening financial condition and noted that it was at risk of bankruptcy, with an accumulated debt of MVR 27 million.
According to MMPRC, the corporation recorded successive losses between 2020 and 2023, totalling MVR 203 million. The annual losses were as follows:
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MVR 1.6 million in 2020
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MVR 141 million in 2021
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MVR 42 million in 2022
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MVR 17.9 million in 2023
MMPRC stated that these figures were included in the SOE Committee’s six-year financial assessment and said the cumulative deficit was a key factor in the organisation’s current financial difficulties.
The corporation noted that since last year, efforts have been made to improve operational efficiency and reduce expenditure. Measures taken include:
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A 10 percent reduction in overall costs
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Consolidation of international public relations partnerships from 21 to 6 agencies, saving over MVR 4 million
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A 34 percent reduction in tradeshow-related expenditure, which previously consumed 80 percent of the total budget. Each major event now saves approximately MVR 2 million while maintaining promotional visibility
MMPRC said it is currently implementing over 21 campaigns under its strategic marketing plan. The corporation also stated that more than MVR 10 million has been generated through joint marketing campaigns with foreign airlines and tour operators.
Tourist arrivals from the Maldives' top 10 markets have reportedly increased year-on-year. The Indian market, which declined by 39 percent last year, has seen a 4 percent growth this year, according to MMPRC. Additionally, the corporation noted a significant rise in search activity for Maldives-related travel information in Europe and Asia.
MMPRC also stated that other competing destinations rely on full government subsidies for tourism marketing, while the Maldives must continue to invest adequately to maintain international visibility and interest in the destination.
