A resolution has been proposed to address the escalating issues, manifesting in the form of a bill that mandates tour operators operating within the Maldives to obtain a license.
The Maldives Journal
Towards the latter part of 2023, the Maldives Association for Travel Agents and Tour Operators (MATATO) brought to light pressing issues confronting local travel agencies. Despite the remarkable growth of the Maldivian tourism sector, MATATO underscored the unfortunate reality that local agencies have been marginalized. This marginalization stems from the presence of "paper companies" that operate without shouldering the financial responsibilities borne by local agencies, such as tourism taxes and other levies.
Furthermore, MATATO emphasized that the persistence of these paper companies is largely due to the absence of clear legal frameworks. Exploiting these gaps, foreign agencies have been targeting nations with substantial tourist inflows, such as India and Russia, to establish paper companies. These entities exploit legal loopholes, allowing them to evade tax obligations and undermine the competitive position of local agencies.
A resolution has been proposed to address the escalating issues, manifesting in the form of a bill that mandates tour operators operating within the Maldives to obtain a license. If passed, this legislation would effectively prohibit unlicensed tour operators from conducting business in the Maldives. Such a measure holds the promise of alleviating the strain and burdens currently shouldered by local agencies.
This progressive bill which was introduced to the Parliament by MP Hassan Zareer of Mathiveri constituency on the 19th of March has, however, been withdrawn by the parliament under Article 92(A) of the Parliament regulations. According to Funadhoo MP, Moosa Siraj, the bill has been withdrawn as it requires further amendments to be made before it can be passed.
The introduction of such a bill in the Maldives is undeniably imperative. By establishing a licensing system and imposing stringent requirements, legal boundaries will be set, providing much-needed protection for local agencies against the encroachment of paper companies.
