SME Digital has introduced a new US dollar-repayable financing facility for guesthouse businesses, offering eligible operators up to USD 648,509 at a reduced annual profit rate of 7.5 per cent. The initiative aims to support investment and expansion in local tourism, with repayment arrangements designed to better align with the dollar revenues earned by guesthouse operators.
Financing is available for a term of up to 15 years, including a grace period of up to 18 months. The facility provides a longer-term funding option for eligible businesses pursuing development, improvements and operational investment within the Maldives’ local tourism sector.
The financing can be used to develop new guesthouses, expand existing properties, and undertake maintenance and renovation. These purposes give operators opportunities to increase accommodation capacity, improve facilities and enhance the guest experience as they develop their businesses.
Eligible uses also include local tourism support services, working capital requirements and technological innovation. This broadens the facility’s scope beyond property construction, recognising the operational services and digital capabilities that contribute to running a tourism business.
For guesthouses receiving income in US dollars, repayment in the same currency can help align financing obligations with revenue. The structure offers operators a basis for planning repayments alongside their dollar earnings, while the extended financing term may support investments that generate returns over time.
SME Digital CEO Badhurudheen Hassan said the facility would provide guesthouse businesses earning US dollar revenues with a more favourable financing option. He highlighted the opportunity for operators to repay their financing in the same currency as their income.
Hassan said the initiative is intended to encourage further investment in local tourism and support the growth of sustainable tourism businesses across the Maldives. By covering development, renovation, working capital and technology, the facility addresses several needs that operators may encounter at different stages of business growth.
Investment in guesthouses can also create opportunities for the wider local tourism economy. Accommodation businesses rely on services and suppliers that contribute to the visitor experience, meaning improvements at property level can support activity beyond the guesthouse itself.
Applications are now open through the SME Portal. Eligible operators seeking to establish, expand or improve their guesthouse businesses can explore the facility as a funding option for their planned investments.
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