Issue 02 | November 2023

MATATO
A Monthly Publication by Maldives Association of
Travel Agents and Tour Operators (MATATO)

N E W S
MATATO Holds Local
Travel Agents Discussion
Forum
Read more on Page 7
____________________________

Maldives Tourism Shows

Signs of Weakening as
Occupancy Growth Slows
and Bed Nights Decrease
Read more on Page 11
____________________________

MATATO Engages with

Local TV Stations to
Address Travel Agent
Challenges
Read more on Page 9

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MATATO News Advertise here
 CONTENTS
MATATO DASHBOARD 3

Upcoming properties 4

Upcoming MMPRC Fairs 5

ECONOMIC UPDATE 6

MATATO Holds Local Travel Agents Discussion Forum 7

MATATO Takes Part in Panel Discussion at GM Forum 2023 8

MATATO Engages with Local TV Stations to Address Challenges 9

MATATO ACTIVITIES 2023 10

Maldives Tourism Shows Signs of Weakening as Occupancy

Growth Slows and Bed Nights Decrease 11

Maldives Tourism Revenue Slumps by $160 Million in 2023 Despite

Increased Tourist Arrivals 11

MATATO NEWS
Monthly News by MATATO

Cover Photo: istockphoto

CONTRIBUTIONS

MATATO MANAGEMENT TEAM

Abdulla Ghiyas Fathimath Shaha
Mohamed Shaz Waleed Ibrahim Didi
Mohamed Khaleel Ibrahim Nizam
Abdulla Suood Ignaz Mansoor
Mohamed Bassam Adam Hathim Hassan

ADVERTISING & EDITORIAL

For advertising & editorial queries please email to
admin@matato.org

CONTACT
Email : admin@matato.org
Phone :+960 3000 929
Mob# :+960 739 0050

© MATATO NEWS
All rights reserved.
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MATATO News
 MATATO dashboard
2022 International Tourism Arrivals (million) - 969
2022 Maldives Tourism Arrivals - 1,675,303
International arrivals regional shares (%) 2022

Maldives Tourist Arrivals Monthly 2023 vs 22 vs 21

Maldives Top 10 Markets 2023

Government Revenues Tourism Related (MVR)

Sep-23 Jan - Sept 2023

62,822 total Operational beds in
Departure Tax
Green Tax
67,734,100
53,261,206
740,262,005
740,139,374
Maldives as at 01st November 2023
Tourism GST 324,919,016 6,414,024,459
Airport Development Fee 71,186,003 762,729,258 Percentage of Beds per Industry
Tourism Land Rent 232,294,955 1,197,786,220 Resorts 68%
Total Revenue (related & non-related) 1,183,437,842 18,830,632,188 Hotels 3%
Guesthouses 24%
Safari Vessels 5%

Dollar income per tourist 536 USD Only 51% of Maldives beds filled
(Estimate based on Year To Date 2023 USD Revenue) so far with the given capacity for
Occupancy rate (%) 2023
Resorts Guest Hotels Safari
Houses Vessels

66.8 % 43.8 % 36.3 % 22.1 % 51%

Note: MIRA Figures from Jan to Sept 2023 (only available up to September)

Sources: Bed capacity utilization

UNWTO (YTD 2023) 3
Ministry of Tourism – Maldives
MATATO News Maldives Inland Revenue Authority (MIRA)
Maldives Monetary Authority (MMA)
 Upcoming properties
Property Region Opening

Ozen Privé Athiri Gili Malé Atoll 2024

Meyyafushi Lhaviyani Atoll 2024

Avalon Maldives Dhaalu Atoll 2024

Villa Haven South Ari Atoll 2024

Nammos Maldives Malé Atoll 2025

Joali Lagoon Malé Atoll 2025

JW Marriott Emboodhoo Finolhu Malé Atoll 2025

Feydhoo Finolhu Malé Atoll 2024

Capella Maldives Malé Atoll 2025

Centara Lagoon Malé Atoll 2025

Centara Grand Muthaafushi Baa Atoll 2024

Al Mahra Laamu Atoll 2025

Corinthia Maldives Malé Atoll 2025

Project Delfin Malé Atoll 2025

Soneva Secret Haa Dhaalu Atoll 2023

SO/Maldives Malé Atoll 2023

Mandarin Oriental Bolidhuffaru Reef Malé Atoll 2025

Jawakara Island Maldives Lhaviyani Atoll 2023

Rosewood Ranfaru Maldives Malé Atoll 2025

Source: Hotelier Maldives

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MATATO News
 Upcoming MMPRC Fairs

Source: MMPRC/ Visit Maldives

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MATATO News
 ECONOMIC UPDATE

Source: Maldives Monetary Authority (MMA)

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MATATO News
 MATATO Holds Local Travel Agents Discussion
Forum

The Maldives Association of Travel Agents and Tour Operators (MATATO) has taken a significant step
forward in addressing the critical challenges facing the Maldivian tourism sector by organizing a forum. This
forum served as a platform for various stakeholders, including industry experts and policymakers, to delve
into pressing issues.

Foremost among the topics under discussion was taxation, a matter that had deeply concerned local travel
agents. They voiced their fears about potential fiscal advantages enjoyed by foreign operators, which could
create an uneven playing field and distort competition within the industry. Additionally, there were
suspicions of foreign travel agencies operating in the Maldives through paper companies, raising concerns
about potential evasion of standard regulatory procedures and compliance with local industry standards.

Banking challenges were another pressing issue discussed during the forum. Local travel agents revealed
their difficulties with card payments and remittances, highlighting the pressing need for streamlined
financial processes to enhance sector efficiency.

The forum also tackled the need to clarify the roles of tour operators and travel agents to prevent confusion
and overlaps. Moreover, comprehensive insurance solutions were discussed, addressing potential issues like
overbookings and payment-related challenges common in the industry.

The potential introduction of a DMC protection law to level the playing field for rate-setting between local
and foreign agents was also explored.

The discussion extended to outbound operations, focusing on the complexities of taxes and remittances, and
concerns were raised about foreign companies operating as General Sales Agents (GSA) without proper
registration.

In summary, MATATO's forum provided a comprehensive platform for informed dialogue and proactive
measures to strengthen the local tourism sector. MATATO's dedication to championing the interests of local
stakeholders underscores their commitment to addressing industry challenges, fostering a more balanced
and robust trajectory for the Maldivian tourism sector.

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MATATO News
 MATATO Takes Part in Panel Discussion at GM Forum

MATATO, the Maldives Association of Travel Agents and Tour Operators, recently made a significant
contribution to the GM Forum 2023 hosted by Hotelier Maldives. The organization actively participated
in a panel discussion, taking part in the vibrant exchange of ideas and insights. The central theme of this
enlightening discussion was centered around "Leveraging Technology for Business Success," a theme of
utmost relevance in today's rapidly evolving business landscape.

The panel was orchestrated seamlessly and was skillfully moderated by Mohamed Shafraz Hafiz, a
seasoned professional serving as the Director of Digital Technology & Marketing at Pulse Hotels & Resorts.
It featured four prominent and respected panelists, each representing diverse segments of the industry.
The inclusion of these accomplished professionals enriched the dialogue with a multifaceted perspective:

• Ruchie Sharma, Cluster Director of Revenue Management at Anantara Hotels, Thailand.

• Rajesh Mehta, Chief Business Officer at Ooredoo Maldives.
• Narelle McDougall, a prominent General Manager at Amilla Maldives.
• Abdulla Ghiyas, the distinguished President of the Maldives Association of Travel Agents & Tour
Operators (MATATO).

This dynamic and engaging discussion served as a unique platform for these industry leaders to share
their invaluable insights and perspectives on leveraging technology effectively. The insights and
experiences they brought to the table were indispensable, particularly within the context of the ever-
evolving and highly competitive landscape of the Maldivian tourism sector.

The panel discussion was not only informative but also a testament to MATATO's commitment to
fostering dialogue and knowledge-sharing within the industry. In an era where technological
advancements shape the trajectory of businesses, the discussion underscored the importance of
adaptability and innovation for achieving sustainable success in the Maldivian tourism sector. The
engagement left attendees with a deeper understanding of the potential technology holds and the
opportunities it provides in propelling the industry forward.

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MATATO News
 MATATO Engages with Local TV Stations to Address Travel Agent Challenges

The Maldives Association of Travel Agents and Tour Operators (MATATO) has taken a proactive stance in
raising awareness and addressing the multifaceted challenges faced by local travel agents. The organization
has embarked on a series of engagements with local television stations, a concerted effort to disseminate
information and insights about the latest developments and initiatives related to the local travel industry.

A recent highlight in this endeavor was the participation of MATATO's Treasurer, Mohamed Bassam Adam,
and Board Member, Ibrahim Nizam, in a featured segment on Raajje Miadhu, which was broadcast on PSM/
TV Maldives. During this insightful appearance, the two MATATO representatives shared their expert insights
and provided updates on the challenges and issues currently impacting local travel agents in the Maldives.

Following this impactful session, MATATO's Vice President, Mohamed Shaaz Waleed, engaged with viewers
on RaajjeTV's Falasuruhee Program. This discussion centered on the latest developments in the local travel
sector and offered an in-depth look at MATATO's ongoing initiatives aimed at addressing the pertinent issues.

To round off these informative and impactful engagements, MATATO's Treasurer, Bassam Adam, took the
opportunity to go live on Raajje TV's "Faskaafu" program. During this session, he provided further valuable
insights into the state of local travel agents and MATATO's continuing efforts to proactively address the
challenges they face.

These engagements with local television stations are a clear testament to MATATO's unwavering commitment
to the welfare of the local travel industry. By actively addressing industry concerns and ensuring that the
interests of local travel agents are promoted and protected, MATATO plays a pivotal role in shaping the
industry's trajectory and fostering a more resilient and thriving local travel sector. These discussions and
insights serve as a crucial resource for industry professionals and the wider public, facilitating a better
understanding of the current landscape and the steps being taken to address its challenges.

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MATATO News
MATATO ACTIVITIES 2023
October

• MATATO joined PATA Travel Market 2023 – New Delhi, India

• MATATO Holds Local Travel Agents Discussion Forum
• MATATO Takes Part in Panel Discussion at GM Forum 2023
• MATATO Engages with Local TV Stations to Address Challenges

September

• MATATO Boards meets 2023 Presidential candidates

• MATATO Releases Report on Tourism and Finance

July

• MATATO joins in welcoming the One Millionth Tourist to Maldives

• Launches Maldives Travel Awards 2023 nominations.

June

• Association begins Survey data collection on Maldives Tourism and Finance Sector
• MATATO joined PATA Destination Experience Forum – Kuching, Malaysia
• MMPRC MD Mr Thoyyib Mohamed was a Speaker at PATA Destination Experience
Forum – Kuching, Malaysia
• MATATO VP Mohamed Shaaz Waleed on Raajje_TV – ‘5 Kaafu Program’ discussing
updates on Maldives Tourism
• MATATO promoted Himalayan Travel Mart 2023 Nepal

May

• MATATO joined PATA Annual Summit & Adventure Mart 2023 – Pokhara, Nepal
• Maldives Minister of Tourism Dr Abdulla Mausoom Speaker at PATA Annual Summit
& Adventure Mart 2023 – Pokhara, Nepal
• MATATO participated Visit Maldives Storytellers' Conference 2023 held at Crossroads
Maldives
• MATATO partners with Korean Tourism Organisation for roadshow in Male’

April

• MATATO Ifthar 2023 (Sponsored by Resort Life)

• Opened Request for Proposal (RFP) - Maldives Travel Awards 2023 and Maldives Travel
Conference 2023
• MATATO and Visit Maldives participate in Travel Agents Forum 2023 in Las Vegas in
April 2023

March

• MATATO holds Board meeting

February

• MATATO forms sub committees for Aviation and Foreign Relations

• MATATO appoints a new Secretary General – Abdulla Suood

January

• MATATO holds first Board meeting for year

• Association lobbies against the increase in TGST increase
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MATATO News
Maldives Tourism Shows Signs of Weakening as Occupancy Growth
Slows and Bed Nights Decrease
The latest data released by the Maldives Monetary Authority (MMA) indicates a slowdown in the growth of the
Maldives tourism sector, which serves as the primary source of foreign exchange earnings for the island nation.

According to the MMA's Monthly Economic Update for October 2023, total tourist arrivals in September 2023 reached
130,967, showing a 17% increase compared to September 2022. Additionally, bed nights also saw an 8% increase.
However, these figures fell short of the pre-pandemic levels observed in 2019 when tourist arrivals and bed nights
grew by 20% and 14%, respectively.

The annual increase in tourist arrivals was primarily driven by robust numbers from China, contributing to 28% of
the total arrivals in September 2023. Other major source markets for tourists included India, Russia, Germany, and
the United Kingdom.

The operational bed capacity of the tourism industry experienced an increase of 4,104 beds in comparison to
September 2022. The occupancy rate saw a slight rise, reaching 46% in September 2023, up from 45% in September
2022. However, it remained below the optimal level of 70%, indicating that the industry was operating with reduced
profitability.

Furthermore, the average length of stay declined to 7.6 days, down from 8.1 days during the same period in 2022,
suggesting that tourists were inclined towards shorter trips. This reduction in the average length of stay could
potentially have a negative impact on the revenue per available room (RevPAR), a vital indicator of the tourism
sector's performance.

Maldives Tourism Revenue Slumps by $160 Million in 2023 Despite

Increased Tourist Arrivals
The Maldives, renowned for its breathtaking natural beauty and vibrant tourism industry, has faced a notable decline
in its tourist revenue over the past eight months. According to data released by the Maldives Monetary Authority
(MMA), the tourist earnings for the initial eight months of this year amounted to $2.6 billion (MVR 40 billion). While
this is still a substantial figure, it represents a concerning $160 million (MVR 2.5 billion) drop when compared to the
same period last year, marking a five percent decrease.

It's worth noting that the Maldives welcomed 1.2 million tourists during this period, up from the one million tourists
who visited the country in the previous year. Despite the increase in visitor numbers and the rise in the Goods and
Services Tax (GST) to 16 percent from the previous year, one of the primary reasons behind the revenue decline has
been the significant reduction in room rates at resorts and guesthouses, according to the Maldives Association of
Travel Agents and Tour Operators (MATATO).

Other key indicators, such as the length of tourists' stays and occupancy rates, have also registered declines compared
to the previous year. The occupancy rate dipped below 50 percent for more than four months this year, while last
year, it fell below this threshold for just three months. As of November 2023, the average duration of a tourist's stay
in the Maldives stood at 7.6 days.

February, traditionally a lucrative month for the Maldives tourism sector, witnessed the highest tourist revenue this
year, amounting to $460 million (MVR 7 billion). Nevertheless, this figure was significantly lower than February in
the preceding year when tourists generated $537 million (MVR 8.3 billion).

The situation underscores the challenges faced by the Maldives tourism sector in achieving growth amid changing
market dynamics, competitive pricing, and evolving traveler preferences. Efforts to restore and bolster revenue are
likely to remain a focal point for the nation's tourism industry in the foreseeable future.

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MATATO News
 Why matato
In the last 17 years of MATATO existence, the association has had the chance to work with the following organizations:

EXPERIENCE

Seventeen Years of continued support and service to the industry. (Established in 2006, MATATO continues to contribute as strong partner to the
growth of the industry)

RECOGNITION AND ACKNOWLEDGEMENT

MATATO is a household name in the travel industry of Maldives, recognized at National and International Level. Members of MATATO benefit
from representation by an organization acknowledged by the stake holders. MATATO’s opinion and consultation is sought after from all areas
including the business sector and in the highest level of the government.

ADVOCACY AND LOBBYING

Lobbying with Government, MATATO has always liaised closely with government institutes, have held meetings with cabinet ministers on multiple
occasions addressing the concerns of our members and collectively, of the industry. MATATO continues to enjoy and benefit from this strong
collaboration with the government.

EXHIBITIONS, FAIRS AND DESTINATION MARKETING

MATATO has organized destination stands and roadshows, in India, Finland, Russia, Ukraine, Saudi Arabia, China, Malaysia, Macau, Indonesia,
UK, and many other countries.

AFFILIATIONS AND PARTNERSHIPS INTERNATIONAL

Pacific Asia Travel Association PATA – MATATO has signed an MOU with PATA for joint collaborations and projects. MATATO is also the local
chapter for PATA in Maldives.

TRAININGS AND WORKSHOPS

MATATO has been organizing various trainings and workshops for our members and industry

PUBLICATIONS

MATATO has been publishing an annual magazine, Maldives Finder for the last six years.

EVENTS AND REGOGNITION

MATATO has been organizing the Maldives Travel Awards annually for the last several years. The association also hosts the Maldives Travel
Conference annually.

© MATATO NEWS
All rights reserved.

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MATATO News