Profits of the Maldives Tourism Development Corporation (MTDC) in 2009 dropped 29 percent to Rf86 million, according a report in Haveeru.
In its annual report MTDC claimed management issues at Herathera resort were the major reason for the decline in 2009. The company received a profit of Rf46.6 million from the resort in 2008, but this fell to Rf76,458 in 2009.
MTDC also invested heavily in settling disputes with Yacht Tours Maldives, spending RF23.3 million to extricate itself from the arrangement and losing a further Rf17.3 in land rent.
The report also blamed the 2009 economic recession for MTDC’s difficulty in obtainnig bank loans to pursue investment projects.