MP Abbas: Tourism shouldn’t be ‘milked dry’, it will start bleeding

Mohamed Abbas, a lawmaker from the Maldives Development Alliance (MDA), says that there should be a limit to treating tourism like a cash cow, warning that the country’s main economic pillar may soon begin bleeding if its “milked dry”.

Abbas, the representative for Velidhoo constituency, issued the stark warning during the parliamentary debate on Sunday on legislative amendments submitted by the government to begin levying Goods and Services Tax (GST) on offshore booking platforms, as well as foreign tour operators and tour agents.

Joining the debate on the bill, Abbas highlighted on the country’s heavy dependence on tourism, and said that any changes to laws related to the tourism sector therefore requires extensive study.

Abbas said that the country faces growing competition from destinations like Mauritius and Bahamas, which have adopted Maldives’ ‘one island, one resort’ concept.

He said that more and more tourists are choosing alternative island destinations, dealing a huge blow to the revenue of Maldivian resorts.

Abbas said that the Maldives has over 1,000 guesthouses and 200 resorts in operation, which are struggling to keep occupancy even above 50 percent.

“Honorable Speaker, ongoing conflicts in Eastern Europe, in Western Europe and in the Middle East have delt heavy shocks to Maldives tourism. We have never seen the occupancy of our guesthouses drop below 60 percent. But its now between 10-15 percent,” he said.

Abbas said that some resorts have been selling all-inclusive packages at below cost in order to boost occupancy.

“Honorable Speaker, this is something we must think deeply about, as we discuss playing with tourism. Honorable Speaker, tourism should be milked like a cow to the extent that it risks the very survival of the tourism sector. It will begin bleeding next, Honorable Speaker,” he said.

Abbas accused different Maldivian administrations throughout the years of amending tourism-related laws to boost revenue instead of engaging in concrete efforts to develop and grow other economic sectors such a fisheries and agriculture.

He said that there are now more expatriates than locals working in fishing vessels, because the country’s young people are increasingly unwilling to join the sector.

The country has also not been producing carpenters or cobblers, he said.

“Everyone’s relaxing, drinking coffee at restaurants. With the influx of expatriates in the country, even one’s child is being looked after by a foreigner,” he said.

Abbas said that the country’s economy needs more young people to join the workforce.