While some of these debts have accumulated over the past few months, others have remained unpaid for several years.
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The guesthouse business in the Maldives has seen significant growth, especially since the pandemic, as travellers have discovered more budget-friendly ways to explore the islands. Despite this boom, many guesthouses are struggling to make payments, raising questions about their profitability and financial management, particularly concerning utility bills.
The State Electric Company (STELCO) recently revealed that guesthouses owe a staggering half a billion Rufiya in unpaid electricity bills. While some of these debts have accumulated over the past few months, others have remained unpaid for several years. In response, STELCO's Managing Director announced plans to implement supportive measures to help clear these outstanding amounts. Similar to the model introduced in 2024 to assist households with large unpaid bills, STELCO aims to offer guesthouse owners instalment plans to settle their debts.
Despite the significant arrears, STELCO has avoided cutting off electricity to the indebted guesthouses. The Managing Director explained that shutting down electricity would lead to substantial losses for these businesses.
Us going and just cutting off the electricity is a loss for the country. We can discontinue the service. When the guest houses close, the tourists will fly out. That island wouldn't receive GST. Other sources of income for the country would also stop. That is a bad name our country gets.
Guesthouses serve as crucial accommodations for layover and budget travellers, and any disruption in service could result in negative reviews and a decline in bookings. This, in turn, would not only harm individual business owners but also reduce the number of visitors to local islands, exacerbating economic losses.
To prevent these adverse outcomes, STELCO is committed to working closely with guesthouse owners to find mutually beneficial solutions. By collaborating with them to devise manageable payment plans, STELCO aims to recover the pending payments while supporting the continued success of the guesthouse sector.
