MMPRC cites past government decisions for losses

Maldives Marketing and Public Relations Corporation (MMPRC) stated today that its financial losses stem largely from actions taken during the last four years of former President Ibrahim Mohamed Solih’s administration. The company also said it has taken steps under the current government to correct course, reducing expenses by 10 percent.

The statement came in response to a report issued by the Parliament's State-Owned Enterprises Committee, which highlighted several concerns about MMPRC’s financial position and long-standing losses.

Established in 2010 to lead the country’s tourism promotion efforts, MMPRC has reportedly incurred losses for four consecutive years, amounting to over MVR 200 million.

MMPRC acknowledged the concerns raised and emphasized its commitment to transparency. It said the parliamentary report was based on financial statements covering the past six years, and outlined several cost-saving initiatives introduced during the last year to strengthen its operations.

Among the most significant changes was a review of global public relations partnerships. Based on performance assessments, the number of PR agencies working with MMPRC has been reduced from 21 to 6, saving over MVR 4 million.

The company also said that trade show and exhibition expenses, which previously consumed 80 percent of its budget, have been reduced by 34 percent. On average, this has saved about MVR 2 million.

Despite earlier setbacks, MMPRC said its promotional efforts this year have led to a 4 percent growth in the Indian tourism market—a rebound from a 39 percent decline last year, attributed to political tensions.

MMPRC also announced plans for a large-scale international campaign in partnership with Liverpool FC. This campaign will include video activations and brand collaborations. Four global ambassadors have been appointed under the expanded Global Ambassador Program, which aims to engage with Generation Z travel influencers and international production houses.

MMPRC reported a MVR 28 million loss last year, with total accumulated losses now estimated at MVR 213 million. The company also acknowledged that it has not made any repayments since the second quarter of 2022 on an MVR 86 million loan secured at 4.6 percent interest via Maldives Ports Limited (MPL) in 2020 to mitigate the impact of the COVID-19 pandemic.