The biggest investor in the Maldivian tourism industry, Villa Group Chairman, Gasim Ibrahim has said that the tourism sector is at stake amid the introduction of many taxes by the government.
He made this remark at the Economic Committee of the Peoples’ Majlis yesterday commenting on the amendment submitted by the MDA member, Hoarafushi constituency MP Mohamed Ismail to increase the lease period of resorts for 99 years when the investors pay 5 million US dollars to the state.
Gasim said that only a few resorts have the occupancy of 80 percent or 90 percent. The normal average rate is between 30 percent and 60 percent.
“I would say that the average occupancy of Maldivian resorts is below 60 percent. This is the state of the luxurious resorts by giving special discounts,” he said.
Gasim Ibrahim said that these problems are rising because of the demand of the government for large amounts of money from different angles.
“The risk is not from one side. TGST percent has been increased. And now Green Tax, and a Land Rent, Duty structure is also increasing. We should be aware of these changes,” he said.
Gasim said that these sudden changes to government policies will become an obstruction for Maldives to compete with competitive destinations. He said that the sudden changes to the tax system has also had its bad effect on the tourism industry of Maldives. In this regard, the occupancy of resorts have gone down and Maldives is losing very important markets.
Tourism sector is at stake amid govt introducing many taxes- Gasim
