Parliament rejects motion to support tourism sector

The People’s Majlis on Tuesday rejected a resolution calling for government measures to support tourism businesses affected by the ongoing conflict in the Middle East.

The motion was presented by Mauroof Zakir of the Maldivian Democratic Party during a parliamentary sitting.

The resolution did not secure sufficient support, with 33 members voting against it and eight members voting in favour of accepting it for debate.

In his proposal, Mauroof cited a decline in tourism activity and a reduction in arrivals linked to regional developments.

Data from the Ministry of Tourism Maldives indicated that daily arrivals had fallen from about 8,000 to between 4,000 and 5,000. The proposal also stated that around 2,000 bookings were being cancelled each day, with overall arrivals declining by 21 per cent.

The resolution said the decrease in arrivals had affected revenue for resorts and guesthouses, including service charge distributions to employees.

To address these issues, the proposal outlined several measures. These included the introduction of working capital loans or income support schemes to maintain payroll, interest-free moratoriums on loan repayments for tourism businesses, and expanded access to concessional credit through institutions such as the Bank of Maldives.

Other proposals included subsidies for utilities, temporary reductions in land rent, airport charges and licence fees, and extensions for tax payments such as Tourism Goods and Services Tax and corporate income tax.

The resolution was dismissed following the vote.