Ministry of Economic Development has stated that USD634,000 of the grant aid provided by the European Union (EU) has been disbursed to 209 guesthouses and 50 liveaboards.
The EU has provided USD2 million as grant aid for the micro, small and medium enterprises (MSMEs) in the Maldives tourism industry to recover from the COVID-19 pandemic, as part of the EU Support for a Resilient Recovery of SME Tourism Industry in the Maldives. The initiative aims to create a more resilient and diversified economy in the Maldives.
To be eligible for the grant aid, applicants must be a local, registered business in the Maldives in the guesthouse or liveaboards sector. The business should be registered and in operation with a valid operating license as of December 2019, January 2020, or February 2020. The guesthouse or liveaboards must also consist of 40 beds or less and applicants must apply before May 31.
Under the initiative, EU has dedicated USD1.5 million for a direct transfer component while USD632,000 is allocated towards technical assistance, which will be directed to training programmes for beneficiaries aimed at high-impact areas such as improving business operations, and financial management, sustainable waste management, and creating access to international markets.
Furthermore, the technical assistance component will also support the set-up of a system that will act as a strategically important tool that is expected to play a crucial role in retaining value created by the industry and promoting the growth of tourism-related MSMEs.