A report from the Parliament's State-Owned Enterprises Committee reveals that the Maldives Marketing and Public Relations Corporation (MMPRC), established to promote the Maldives, has been operating at a loss of MVR 229.7 million over the past four years.

According to the report, the company hasn't made a profit in the last four years. The last time it made a net profit was in 2020, amounting to MVR 214,115. Before that, it was profitable in 2019.

The committee report shows that since the COVID-19 pandemic, the company has been operating with significant financial aid from the state. In the past five years, about half a billion rufiyaa from the state budget has been spent on MMPRC.

The highest revenue post-COVID was in 2023, at MVR 23 million. Last year's revenue was similar at MVR 22.3 million. This is an 83% decrease compared to the MVR 132.5 million revenue in 2019.

Despite earning MVR 22.3 million last year, MMPRC ended the year with a MVR 27.7 million loss.

The report highlights that MMPRC's expenses are disproportionate to its revenue, which is the main reason for its losses. The inability to pay off debts is also cited as a reason. Last year alone, the company spent MVR 144 million rufiyaa on operations and debt repayment, which is several times more than its revenue.

Currently, MMPRC's biggest expenditure is on promoting the Maldives in partnership with Liverpool FC, a campaign running from March 13, 2025, to May 13, 2028. MVR 20.6 million has been allocated for this campaign this year, with an additional MVR 2.5 million set aside.

Although MMPRC's main purpose isn't to generate revenue for the state, it continues to collect fees from resorts and tourism service providers under various names.

The committee report indicates that due to significant losses, MMPRC has halved its expenses. To improve its financial situation, it has increased membership fees and advertising rates.

These increases are expected to boost the company's revenue by 10-20%, with total revenue projected to increase by 49% this year due to higher participation fees for fairs and roadshows.

The company has also cut costs by giving up a warehouse, reducing printing of promotional materials, and decreasing shipping expenses.

The report shows that the company's losses over the past four years have reached MVR 229 million, suggesting that MMPRC is struggling to recover from its financial pit and is heading towards bankruptcy.