President Ibrahim Mohamed Solih has announced that the government is revising its tourism target for the year.
The government set its target for the year to welcome 1.9 million tourists to the Maldives.
Initially, the government set a target of welcoming 1.9 million tourists this year. However, President Solih revealed during a campaign rally in Meemu Mulah on Saturday night that they are revising this target based on the current tourism trends and numbers. As the Maldives prepares to welcome its one millionth tourist today, the government now aims to receive a total of 1.9 million tourists by the year's end.
In his speech, President Solih also reflected on the challenges the Maldives faced during the COVID-19 pandemic and the measures taken by the government to overcome them. He emphasized that while many countries, including the Maldives, closed their borders in response to the pandemic, the government took meticulous measures to ensure the well-being of its people. However, the closure had significant economic consequences, resulting in a revenue loss of MVR 14 billion in 2020.
Sharing details of the measures taken to revive the economy after the pandemic's impact, the President said MVR 321 million was provided to more than 22,900 people as income support. Over MVR380 million was disbursed as soft loans to 1,400 businesses, bringing the total amount of soft loans given to businesses and resorts to MVR 1.1 billion.
The President said while three years have passed since the Maldives re-opened its borders, the results of the strong measures have yielded positive results. In an indirect reference to neighboring Sri Lanka without naming the country, the President said that we are witnessing the situation of countries that did not take similar measures as the Maldives in response to the pandemic. He emphasized that the Maldives effectively overcame the challenges posed by the pandemic, only to face new economic constraints due to the Russia-Ukraine war. The biggest expenditure incurred was related to oil price reductions, resulting in an additional US$20 million per month beyond the budgeted amount, he said.
"The government has spent about MVR 2.3 billion in the last two years to reduce oil prices. What we did then by borrowing loans was reviving the economy," President Solih said.
Sharing IMF and World Bank figures, the President said foreign financial institutions had previously forecast the Maldives' economy to grow by six or seven percent this year. However, the current estimate is a 9.4 percent increase, surpassing the previous forecasts.
The President also noted that the opposition and some foreign financial institutions had said oil prices, as well as inflation, would rise in the Maldives. While foreign financial institutions had earlier forecast inflation to rise by 5.4 percent this year, the current forecast is that inflation would be maintained at 3.4 percent, he said.
"This is not something I am simply saying -- these figures are facts backed by the central bank, MMA's statistics. Inflation in Europe is currently at nine percent. So we are seeing the results of our efforts to control prices," he said.
President Solih expressed confidence in the country's economic prospects, stating that the state will generate MVR 30 billion in revenue this year. If re-elected for a second term, he pledged to double the economy and generate MVR 50 billion in revenue by the end of his term. He mentioned that according to World Bank statistics, the Maldives ranks among the ten fastest-growing economies in the world.
"The opposition can say that commodity prices are going up. Inflation is going up. But here is the statistical trend," he said, responding to critics.
