As the economies of America and the European Union (EU) become more vulnerable in the coming years, the Maldives tourism industry will see a decline in business, the Maldives Association of Tourism Industry (MATI) has predicted.
Maldives Association of Tourism Industry (MATI) yesterday claimed that decline in European traffic to the Maldives was due to economic stability in that region.
MATI Secretary General ‘Sim’ Ibrahim Mohamed pointed out that total tourist arrivals has not declined; in 2011, the Maldives set a new record of nearly one million.
“Occupancy rates in resorts have gone up following the arrival of Chinese tourists,” Sim told local media. “But the number of tourists arriving from Europe and other western countries has declined and we are threatened by the economic instability that Europe is experiencing.”
Maldives Inland Revenue Authority (MIRA) has lately released data indicating that tourism comprised a majority of state revenue in 2011. The State Budget for 2012 was created on this assumption, and leans heavily on expected revenue from tourism in the coming year.
Although the tourism industry has recovered impressively from devastating Boxing Day tsunami of 2004, Sim predicted progress would stall mid-2013 due to “global economic changes as economies of countries like America and the European Union become more unstable and vulnerable.”
However, the Maldives promises to remain atop its niche market of small island tourism. While Mauritius and the Seychelles are leading competitors, Sim affirmed that within the small island niche “we are unbeatable, and I believe it will stay that way.”
According to Simon Hawkins of the Maldives Marketing and PR Corporation (MMPRC), close correlation between a tourism industry’s marketing and arrivals is a strong indicator of success.
In 2011, Hawkins said, the Maldives destination board spent US$2 million on marketing and received close to one million tourists.
Comparatively, Mauritius spent US$13 million and received one million tourists.
“We’re six-and-a-half times more cost effective than Mauritius, and 30 times more cost effective than Indonesia,” said Hawkins. “We are batting very much above our weight, but that’s because the product is brilliant.”
Sim added that the Maldives product did not need to be reinvented during the European recession to suit the growing Asian market.
“Chinese tourists are like any Western tourist,” he explained. “When the Russians began coming to the Maldives they had some different expectations, but now they are used to what we offer. The Chinese will be the same.”
In 2011, Chinese tourists comprised a majority of total arrivals. However Minivan understands from conversations with resorts managers that while they come in high numbers they are not generally high spenders – while resorts make a bulk of their revenue from the bars, restaurants and spas, officials have noted that Chinese tourists’ primary expenditures are on board and transportation.
Minivan News inquired whether the 2013 presidential election would impact tourism.
“Political parties have matured, and the people have matured. They are accepting democracy,” Sim said. “2013 will be much better than when we started our multi-party system in 2008.
“Democracy is not a beauty pageant, it has ups and downs and hustle and bustle, and I think people understand that,” he observed.
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Sadly this government does not know anything about democracy. They claim they are democratic. But their actions goes against it.
OCCUPY Maldives!
there is a major revultion going on in the world around us. its time we caught up with the rest of the world..
its a spiritual awakening, a new hope for a new way of life, defying old norms and values.. i can't wait to see the inevitable changes happening in all institutions (politics, economics, religious and social)
"Batting above our weight"? Mr Hawkins I believe you may have meant "Boxing above our weight"?
“We’re six-and-a-half times more cost effective than Mauritius, and 30 times more cost effective than Indonesia” - and this is reason to be proud because of exactly what? Maldives is unique, yes, but expensive and far for the average European with many new destinations becoming popular in the world.
The major flaw in Mr. Hawkins' thinking is the belief that he and his institution had anything to do with current levels of tourist arrivals. They didn't. Tourism has very much developed on its own, and with the help of marketing by the resort owners/operators themselves.
Maldives as a tourist destination will always do (reasonably) well, whether MMPRC exists or not. Continued growth on the other hand is a completely different story that requires long term strategies and adequate investments. Unfortunately questions will only start being asked once European arrivals have gone further down. New markets such as China are too young to be relied on, so Europeans are and will always be important for tourism here.
How come when all of Europe is in a recession it is getting more expensive to holiday in the Maldives? Would it not be better to cut prices and have tourists still come to what is a most beautiful place in the world? If prices keep going up you will not have any tourists at all in the resorts.
No tourists = No Money
Simon, you might have spent US 2 Mil. But what about the money spent by the private sector? Do you have an estimate or even a guesstimate. So I do not think you could compare Mauritius and claim to be more efficient and effective.
Sim told local media. “But the number of tourists arriving from Europe and other western countries has declined and we are threatened by the economic instability that Europe is experiencing.” This is totally false. Get your facts right Sim. Tourism Ministry figures on their website states that at the end of November 2011, Europe has grown by 6.6% compared to the same period last year. The only decline is in UK single digit % decline similarly Italy. Germany has grown by double digit growth% same goes to France. So dont try to fool us. What you are trying to do is to scare the government and get more funds so that you could dump that money in Euro Zone which experiencing a heavy decline as you have agreed in the article.
However Minivan understands from conversations with resorts managers that while they come in high numbers they are not generally high spenders – while resorts make a bulk of their revenue from the bars, restaurants and spas, officials have noted that Chinese tourists’ primary expenditures are on board and transportation. Eleanor, its sad that you are professionalism is slowly fading away like DhiTV. How many managers did you converse and who are they? Check UNWTO figures on tourist expenditure? Chinese are in the top 5 spenders during their travel. Yes the managers whom you conversed need to adjust to Chinese tourists. They need to hire Chinese Chefs, they need to serve Chinese Beer and Chinese wine and they need to adjust their product (not much slight variations) to cater for them. Those who adjusted are benefiting while those so engulfed by European culture will be at a loss. Blaming Chinese for coming to the Maldives.