Former Foreign Minister Abdulla Shahid has warned that the government’s policies could severely harm the guesthouse industry, leading to significant economic challenges. Shahid voiced his concerns during his address to members of the Maldivian Democratic Party (MDP) in Aa. Ukulhas.

Shahid highlighted that increased taxes imposed on tourists visiting guesthouses are a critical issue. He expressed particular concern about the impact on local economies like Ukulhas Island, which he described as a key contributor to state revenue through tourism.

He argued that the government's "foolish policies" could ruin the industry, stating, “The entire industry could be destroyed, and the economy could fall into another pit.” Shahid emphasized the need for better governance to prevent such outcomes.

Shahid reiterated his belief in the MDP's role as a solution, declaring that the party would "defeat this government and give hope to the people again." He added that the people would always stand against injustice.

Addressing the tax hikes, he pointed out that the cumulative increases—such as those in Tourism Goods and Services Tax (TGST), green tax, departure tax, and airport development fees—would disproportionately affect guesthouses. He remarked, “The increased taxes are higher than room rent. We think there will be someone in government who knows how to calculate.”

Shahid's comments reflect growing concerns about the government's tourism-related policies and their broader impact on the Maldivian economy.