Maldives Marketing & Public Relations Corporation (MMPRC) is taking the right measures to reverse the losses reported in the past three years, a Parliamentary Committee report has said.
Operating as an independent and autonomous body under the governance of a Board of Directors appointed by the President of the Maldives, MMPRC actively markets the Maldives in key global markets.
The Parliamentary State-Owned Enterprises (SOE) committee had appraised the recent financial position of MMPRC as part of its wider efforts to review state-owned tourism related companies. The committee's report examined the company's financial position in detail, highlighted measures taken to improve the company's finances and recommendations of further steps.
MMPRC, for three consecutive years, had reported losses leading to concerns of bankruptcy.
Financial statements of MMPRC for the last 6 years
2019 - USD 1.53 million profit
2020 - USD 21,700 profit
2021 - USD 9.2 million loss
2022 - USD 2.7 million loss
2023 - USD 1.2 million loss
2024 - USD 1.8 million loss
The committee in its report had noted the steps being taken by MMPRC since 2023 to reverse its fortunes.
The report had highlighted that MMPRC has increased membership fees this year and increased revenue by 20 percent from advertising sales. The hike in road show and fair participation fees is expected to increase total revenue by 49 percent this year, the report said. In addition, costs have been reduced by five percent by securing smaller stall spaces at tourism fairs.
The State-owned company has also shifted priorities to participate in tourism fairs in just key markets. Joint marketing campaigns with third parties are expected to reduce campaign spending by up to 30 percent which is complementing other austerity measures
Some other cost-cutting measures currently being implemented include, slashing printing costs, limiting warehouse rental and reducing equipment shipping costs.
The SOE committee report expressed concern over MMPRC’s continued dependence on State funds - recommending measures to ensure swift financial independence.
MMPRC's gearing ratios, including debt to equity ratio and debt to total capital ratio being in minus figures, indicate a risk of bankruptcy, the report said.
MMPRC meanwhile has pledged to realign its marketing campaigns to digital avenues and divert focus to just key markets in a bid to curb expenses.