Maldives Tourism Development Corporation’s (MTDC) net profit dropped by 26 percent in 2017, creating a loss of USD 40,941 (MVR 631,310), the annual report from the company has revealed.
MTDC had a total profit of USD 4.4 million (MVR 67.8 million) last year.
In 2016, it recorded a profit of USD 6 million (MVR 92.5 million).
Meanwhile, MTDC also revealed that the company’s debt had risen to USD 26.1 million (MVR 402.4 million) by 2017.
According to the annual report, there were not many transactions last year, except for the sub-lease of islands already leased by the company, which contributed to the drop in its profits.
The company earned revenue from the agreements made with the Ministry of Tourism in leasing Naagoashi in Haa Dhaalu Atoll, Kondeymatheelabadhu in Gaafu Alif Atoll, Ekulhivaru in Noonu Atoll and land in Uligan in Haa Alif Atoll, MTDC report stated.
However, a significant loss was recorded from selling the head-lease of the islands Emboodhoo and Olhuveli in Dhaalu Atoll (Niyama Private Island).
MTDC’s Managing Director Abdullah Shujau said that the company had to face many financial setbacks in 2017. Acknowledging the rising debt caused by liquidation damages and fines owed to the state, Shujau said it was crucial to introduce new strategies to overcome the tremendous debt.