The Maldives' tourism sector has incurred a loss exceeding USD 500 million due to the ongoing conflict in the Middle East, industry associations revealed today.

In a joint statement, the National Hotels and Guesthouse Association of Maldives (NHGAM) and the Maldives Association of Travel Agents and Tour Operators (MATATO) noted that the tourism sector has faced significant losses from last March until today.

During last March and April, tourist arrivals to the Maldives saw a substantial decline. Arrivals during these two months dropped by 15-20 percent compared to the same period last year.

According to the statement from the Guesthouse Association and MATATO, there is a possibility that forward bookings from key tourist markets will decrease. The statement noted that this has led to financial difficulties for those working in and playing vital roles in the tourism sector in terms of continuing their business and providing services.

The two associations stated that local Small and Medium Enterprises (SMEs), guesthouses, travel agents, and tour operators, who play a crucial role in the tourism sector, have become financially weakened to the point where they may have to cease operations.

"MATATO and NHGAM together call upon relevant government authorities, financial institutions, and those involved in the tourism business to hasten the stabilization of the industry and the protection of Maldivian businesses, and before a disaster strikes, to take swift measures and to plan and introduce ways to quickly assist businesses," the statement said.

The Guesthouse Association and MATATO stated that urgent measures must be taken in the coming days to improve the current situation. The statement noted that the government and financial institutions must provide help as soon as possible by providing interest-free moratorium loans, assisting in the restructuring of existing loans, deferring tax payments, and waiving fees and quota fees.