MATATO urges MMPRC SOE Model overhaul, triple marketing investment

The Maldives Association of Travel Agents and Tour Operators (MATATO) on Sunday, intensified its calls to restructure Maldives Marketing and Public Relations Corporation (MMPRC).

MATATO urged MMPRC to move away from traditional State-Owned Enterprise (SOE) model, and increase marketing investment threefold.

In its statement, MATATO said that the Maldivian economy is heavily reliant on tourism, "making it imperative for the government to prioritze investment in tourism marketing" to sustain economic growth and stability since the government is aiming for a GDP increment to USD 12 billion.

MATATO's reiteration for MMPRC's overhaul follows the association's previous report titled "Importance Of Destination Marketing", which was unveiled during World Tourism Day in 2017. The association further highlighted that it had persistently stressed the importance of destination marketing over the years, while the report explored the benefits in "amplifying Maldives' appeal as a tourist haven on a global scale".

In the report, MATATO highlighted the challenges Maldives tourism industry faces in contrast to rival markets such as Sri Lanka, Mauritius and Seychelles.

According to MATATO, based on the annual arrival figure of 1,878,543 in 2023, the Maldives government spent USD 4 per tourist directly "towards destination marketing efforts conducted by MMPRC". The government's Return on Investment (ROI) for direct and indirect tourism-related taxes and revenues is estimated at USD 600 per tourist, resulting in an impressive ROI of 12,000 percent.

"Unlike conventional expenditures, tourism marketing should be regarded as an investment rather than a mere expense, especially considering the country's heavy reliance on tourism revenue," MATATO said.

"The economic repercussions of neglecting tourism marketing efforts could be severe, risking livelihoods and economic stability, as evidenced during the 2020 pandemic when the shutdown of tourism posed threats to food security and government foreign currency earning to pay fuel bills".

Despite MATATO's repeated advocacy for intensified destination marketing, recent indications from MMPRC suggesting a shift towards self-sufficiency has raised industry concerns, the association added. 

The association further said it plans on engaging with the Ministry of Finance and Ministry of Tourism to address these concerns promptly.

Besides this, MATATO also highlighted the lack of industry representation in the current MMPRC board, and expressed concerns over discussions to raise participation fees for travel agents, guesthouses, and liveaboards.