Hajj Corporation Operating at Annual Loss of MVR 40 Million, Says MD

The Managing Director of the Maldives Hajj Corporation (MHC), Mohamed Shakeel, has revealed that the corporation has been operating at an annual loss of MVR 40 million. However, he expressed confidence that efforts to enhance revenue will lead to increased profitability.

In an interview with state media, Shakeel noted that the MHC has operated at a loss for the past 11 years, but the government is now taking steps to strengthen the organisation. He claimed that the MHC was originally established to provide affordable Hajj services but has instead functioned solely as a Hajj and Umrah tour group, resulting in significant debt.

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“The Hajj Corporation has deviated from its original purpose over the last 11 years,” Shakeel explained. “The aim was to offer Hajj at a lower cost, but we have been running at a loss of between MVR 30 million and MVR 40 million annually.”

He further elaborated that the current pricing for Hajj was established 11 years ago, while recent increases in taxes imposed by the Saudi government have raised costs associated with airline tickets and accommodation.

While the corporation previously depended heavily on government support, Shakeel stated that it is now focusing on identifying and rectifying operational mistakes. He mentioned that President Dr Mohamed Muizzu had tasked him with transforming the MHC into a profitable and self-sustaining entity.

Shakeel emphasised that only through profitability can the corporation offer Hajj services at competitive prices. To this end, he indicated that the MHC is exploring opportunities in the real estate sector as part of its strategy to enhance revenue.