President Ibrahim Mohamed Solih has stated that under the administration’s policy on promoting local tourism in the Maldives, the administration has decided to create a financing company, SME Financing and Development Corporation (SFDC) with the shareholding of the government. The President made this statement while speaking at the closing ceremony of the "Guesthouse Symposium 2018" held at Dharubaaruge this evening.
In his speech, the President stated that the administration would provide financial and professional assistance to guesthouse businesses through this company.
Speaking in this regard the President stated that SFDC would be first established as a financial institute which does not take deposits but that it would change to a depository company midway of the company operations. He also stated that the company will start issuing loans on February 2019.
Moreover, President Solih emphasized that SFDC will be the first of its kind bank in the Maldives with the shareholding of the city councils and stated that the bank would contribute in generating more wealth and ensuring economical sustainability of the Maldivian people.
On a different note the President shed light on the fact that tourism industry accounts for 70 percent of the Maldivian economy and stated the importance of further developing the industry in order to achieve economic feasibility and individual growth.
Speaking at the function, the President underscored the high priority accorded to ensuring the true benefits of the tourism industry is enjoyed by all Maldivian citizens, rather than only profiting the business leaders of the industry. In this regard the President highlighted that the Ministry of Tourism was in the process of revising the necessary rules and regulations.
In his speech, President Solih highlighted that broadening tourism promotion to encompass guesthouse businesses is part of the first 100-days’ goals of his administration. He noted that the Maldives should not only be promoted as a luxury destination, and said that the middle-class market must be advertised as well.
Continuing on, the President pointed out that the guesthouse businesses were not currently being regulated properly, despite the rapid rate at which the business has expanded to all parts of the country. He said that this could only be achieved by decentralizing tourism management and making local councils the main powerhouse of guesthouse businesses.