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Gov’t to address industry concerns over destination principle

Minister of Tourism and Civil Aviation Mohamed Ameen has assured that the government would resolve concerns relating to the destination principle.

Speaking at a ceremony held to mark the National Tourism Day, the minister said changes were brought to the TGST Act under the destination principle over the last two months. He said the changes have raised concerns from tourism officials, travel agents and other industry stakeholders, and noted that the concerns were mainly related to the deadlines and other factors involved. He said that many stakeholders in the industry had sent proposals to President Dr Mohamed Muizzu regarding the issues, and revealed that the President has decided to amend the TGST Act soon to address these concerns.

The minister further said the tourism industry has been affected by global developments this year. Although the year started on a positive note for the tourism sector, its growth has been significantly affected, particularly due to the Middle East conflict and its impact on international travel. Despite the challenges, he said tourist arrivals are improving, with 1.57 million tourists recorded by September, and August arrivals higher than August last year. He said these numbers reflect the demand for Maldivian tourism.

Speaking on the tourism strategy towards 2040, the minister said the government is working towards the goal of making the Maldives a developed country by 2040 through tourism diversification, policy harmonisation and improved productivity.

Describing 2027 as Visit Maldives Year, the minister said the upcoming year will be a national campaign aimed at strengthening the Maldives’ international tourism competitiveness and contributing to the economy.

Speaking at the ceremony, the Chief Executive Officer and Managing Director of Visit Maldives Corporation (VMC) Abdulla Yasir said this year has been a challenging year for the tourism sector. He said tourism is now improving, adding that the 2027 national campaign should involve society as a whole and showcase the Maldives’ achievements, islands and culture.

Yasir also highlighted the history of Maldivian tourism and its contribution to employment and the economy, noting that the first resort opened on 3 October 1972 and that the industry employed 55,874 people in 2022.