The islandchief

For hoteliers and stakeholders in the Maldives tourism industry, what’s the best way to survive during periods of stormy economic turbulence, especially when taxes have also increased?

PUBLISHED November 10, 2024

Ross Woods

Hotel Investment Strategist

Survival hinges on liquidity management and dynamic operational adjustments. Hoteliers must optimize cash flow by reducing non-essential expenses, renegotiating debt terms, and adapting offerings to shifting demand. Stakeholders should forecast the duration of turbulence, focusing on fiscal sustainability while exploring targeted tax relief or deferral strategies to ease short-term pressures.

Abdulla Fathhey

General Manager

Villa Park

A flat $500 per head exchange to Maldivian Rufiyaa might not fairly reflect the diversity in room rates and categories across resorts, especially when the length of stays varies. Adopting a percentage-based approach on revenue, tailored to each resort’s earnings, could offer greater equity. Furthermore, considering the varying policies on infants and children’s occupancy, adjusting this policy would ensure a more equitable system that respects the unique setup of each resort. I believe that changes to the existing taxes may result in unfavorable impacts, influencing customers' decision-making.