MATATO Challenges World Bank's Tourism Forecast

The Maldives Association of Travel Agents and Tour Operators (MATATO) has contested the World Bank's assertion that declining income and GDP growth are primarily due to tourists opting for more affordable guesthouses over luxury resorts.

In its recent "South Asia Development Update" report, the World Bank revised down Maldives' GDP growth forecast for 2024 from 5.2 percent to 4.7 percent, citing a shift in tourism preferences towards lower-cost guesthouses.

However, MATATO refuted this forecast in a statement released on Tuesday, suggesting that the downturn reflects a larger imbalance between tourism supply and demand. The association highlighted a decrease in Average Daily Rates (ADR) across the industry and emphasized the absence of strategic marketing efforts to stimulate demand and address oversupply.

Additionally, MATATO provided further insights:

• Only 51% of the 62,822 tourist beds available in the Maldives were occupied as of November last year.
• The average duration of tourist stays decreased from 8.1 days in 2022 to 7.6 days in 2023.
• Global inflation resurgence and the reopening of competitive beach destinations, previously closed during the COVID-19 pandemic, intensified competition against the Maldives.
• Tourism revenue decreased by MVR 2.5 billion in 2023 compared to 2022.

Moreover, MATATO pointed out that the World Bank's report only considered data up to the third quarter of last year, which may not offer a comprehensive overview of the entire year.