Parliament recommends that MMPRC cut costs, boost income

The Parliament on Wednesday recommended that the national tourism promotion board, Maldives Marketing and Public Relations Corporation (MMPRC) cut costs and find ways to become self-sufficient.

The Parliament’s State-owned Enterprises Committee had compiled a report following a review of the status of both the MMPRC and Maldives Integrated Tourism Development Corporation (MITDC).

The committee concluded that MMPRC is heavily reliant on state funding to run core campaigns and repay loans. It recommended the company to explore ways to cut costs and boost its revenue in order to become self-sufficient.

The recommendations were passed with a unanimous vote of 62 at the Parliament on Wednesday afternoon.

MMPRC is mandated to promote tourism – the Maldives’ main economic driver.

According to the report compiled by the SOE committee, the MMPRC hasn’t generated a profit since 2020, and does not have enough funds to run its campaigns.

According to the committee, the MMPRC is at risk of bankruptcy.

The MMPRC is running 25 different campaigns at the moment, the most expensive of which is its collaboration with top English Premier League club Liverpool FC. The corporation has allocated a budget of MVR 20.6 million for the campaign, which will run from March 13, 2024 to May 31, 2028.

The corporation also spent MVR 17.6 million on the Arabian Travel Market which took place in Dubai from April 28 to May 1.

The committee concluded that the main reason for the bankruptcy fears is the MVR 203 million in losses accumulated during the Maldivian Democratic Party (MDP) administration.

The MMPRC was also embroiled in corruption allegations during former President Abdulla Yameen Abdul Gayoom’s administration, resulting in the theft of around MVR 1.4 million in state funds.