MATATO News - Nov 2023

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

MATATO News

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CONTENTS MATATO DASHBOARD

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Upcoming properties

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Upcoming MMPRC Fairs

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ECONOMIC UPDATE

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MATATO Holds Local Travel Agents Discussion Forum

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MATATO Takes Part in Panel Discussion at GM Forum 2023

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MATATO Engages with Local TV Stations to Address Challenges 9 MATATO ACTIVITIES 2023

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Maldives Tourism Shows Signs of Weakening as Occupancy Growth Slows and Bed Nights Decrease

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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 Fathimath Shaha Abdulla Ghiyas Ibrahim Didi Mohamed Shaz Waleed Ibrahim Nizam Mohamed Khaleel Ignaz Mansoor Abdulla Suood 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 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

Government Revenues Tourism Related (MVR) Departure Tax Green Tax Tourism GST Airport Development Fee Tourism Land Rent Total Revenue (related & non-related)

Sep-23 67,734,100 53,261,206 324,919,016 71,186,003 232,294,955

Jan - Sept 2023 740,262,005 740,139,374 6,414,024,459 762,729,258 1,197,786,220

1,183,437,842

18,830,632,188

Dollar income per tourist 536 USD (Estimate based on Year To Date 2023 USD Revenue)

Resorts

Occupancy rate (%) Guest Hotels Houses

Safari Vessels

66.8 %

43.8 %

22.1 %

36.3 %

Maldives Top 10 Markets 2023

62,822 total Operational beds in Maldives as at 01st November 2023 Percentage of Beds per Industry Resorts 68% Hotels 3% Guesthouses 24% Safari Vessels 5%

Only 51% of Maldives beds filled so far with the given capacity for 2023

51%

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

MATATO News

Sources: UNWTO Ministry of Tourism – Maldives Maldives Inland Revenue Authority (MIRA) Maldives Monetary Authority (MMA)

Bed capacity utilization (YTD 2023)

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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

MATATO News

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Upcoming MMPRC Fairs

Source: MMPRC/ Visit Maldives

MATATO News

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ECONOMIC UPDATE

Source: Maldives Monetary Authority (MMA)

MATATO News

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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 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 everevolving 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.

MATATO News

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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 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

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MATATO joins in welcoming the One Millionth Tourist to Maldives Launches Maldives Travel Awards 2023 nominations.

July

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 News

MATATO holds first Board meeting for year Association lobbies against the increase in TGST increase

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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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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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