Sunday, July 28, 2024
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Maldives to Boost Tourism Marketing Budget to USD 25 Million
Minister of Tourism Ibrahim Faisal has announced a significant increase in the Maldives’ tourism marketing budget to USD 25 million. This new allocation will be funded through a portion of two tourism-related taxes.
In an interview on Sangu TV, Minister Faisal highlighted the disparity between the industry’s substantial revenue and its relatively modest marketing budget. He emphasized that the Maldives Marketing & Public Relations Corporation (MMPRC) has struggled to execute comprehensive marketing campaigns due to financial constraints.
“The current strategy involves allocating a certain percentage of the green tax and Tourism Goods and Services Tax (TGST) to tourism marketing. This initiative aims to increase the marketing budget to USD 25 million next year, addressing the issue of insufficient marketing funds,” Minister Faisal stated.
He elaborated on the need to target markets like China and Russia, which have previously received minimal marketing attention. “We believe that focusing our marketing efforts on these countries will yield significant benefits,” he said.
Additionally, Minister Faisal mentioned that the opening of Velana International Airport and the launch of operations by the Maldivian national airline, using large aircraft for European destinations, will positively impact tourism. Projections suggest that the number of tourists visiting the Maldives will reach 2.2 million by the end of the year.
Currently, the Maldives’ average cost of marketing activities stands at MVR 154 million, or approximately USD 9 million. Successive heads of the MMPRC have long deemed this amount inadequate, presenting a recurring challenge that has yet to be effectively addressed by any tourism minister.
