Velidhoo MP Mohamed Abbas has criticized successive governments for failing to develop the fishing and agricultural sectors, warning that over-exploiting the tourism industry is reaching a breaking point.
Abbas voiced these concerns during a parliamentary debate on a proposed bill to levy Goods and Services Tax (GST) on offshore booking platforms, foreign tour operators, and travel agents.
The MP asserted that no administration has undertaken adequate efforts to advance the fisheries and agriculture industries. He further questioned why successive governments have failed to decentralize and expand tourism across the entire archipelago.
"Honorable Speaker, while we discuss making changes to tourism today, we must think deeply. We must not allow ourselves to milk the tourism industry like a cow to the point of exhaustion. Honorable Speaker, after the milk is gone, only blood will follow," Abbas said.
Government proposes GST expansion to foreign tourism platforms
The Maldives government has introduced a bill to expand GST to offshore booking platforms and foreign tour operators starting October 1. The amendment aims to apply a 16% tax rate to all tourism services provided within the country, regardless of the business's physical location. This move seeks to implement a "destination principle" for tax.
Highlighting that the Maldives sustained itself through the fishing industry even before tourism generated revenue, Abbas noted that the situation has drastically changed. He lamented that there are now few Maldivians working on fishing vessels.
"No government has worked toward the sustainable development of the Maldivian fishing or agricultural industries. We pay lip service to fishermen and farmers, yet today, 95 percent of the crews on our yellowfin tuna vessels and fishing boats are Bangladeshis and other expatriates," Abbas stated.
Questioning why foreign currency continues to flow out of the country, Abbas recalled a time when every household produced skilled masons and carpenters. He noted that today, the country relies almost entirely on foreign labor for such trades.
"The Maldivian economy will only improve when the younger generation enters the workforce, the fisheries and agricultural sectors. Simply squeezing the tourism industry until it is exhausted is not a viable solution," Abbas added.
He also expressed concern over the concentration of resort development in the Male’ region while neglecting the northern and southern atolls. He argued that expanding tourism to these regions and establishing direct flights to Addu, Fuvahmulah, and Hanimaadhoo would increase the country's dollar revenue.
Furthermore, he pointed out that the state already collects taxes from every tourist visiting the Maldives.
