Business & Tourism – Page 18 – Minivan News

Tourist arrivals reach half a million in 2014

Tourist arrivals in 2014 reached half a million at the end of May, registering an increase of 11.9 percent compared to the same period in 2013, the Ministry of Tourism has revealed.

“By individual market performances, China continues to show remarkable performances maintaining its number one position as the market leader with more than 27 percent shares. At the end of May 2014, a total of 141,249 tourists arrived in Maldives from China, which was 23.3 percent increase over the same period of 2013,” the ministry noted.

The Maldives welcomed a total of 518,166 guests from January to May 2014 with Europe contributing 48.3 percent of arrivals.

However, the Asia and Pacific region overtook Europe in the month of May with 55 percent of arrivals or 50,354 tourists.

Total arrivals from the region from January to May (229,847) also increased 24.7 percent compared to the same period last year.

“India, Japan and Korea were the second, third and fourth markets respectively from this region. Indian market saw an increase of 13.1 percent during the period in review contributing 3.5 percent as market shares at the end of the period.”

The Tourism Ministry also noted that the number of registered tourist establishments at the end of May was 460 with 30,510 beds, “out of which on average 291 establishments with a sum total of 27,004 beds were operational during the period in review.”

“These include 105 tourist resorts (23,029 beds), 17 hotels (1,510 beds), 112 guest houses (1,539 beds) and 57 safari vessels (927 beds),” the ministry revealed.

“The overall bed nights of these establishments saw an increase of 5.9 percent during the period reaching a total of 3,262,667 nights. While the occupancy rate recorded an increase of 2.3 percent to attain an average of 80.2 percent for the period, average duration of stay of the tourists saw a decline of 0.4 percent. The average duration of stay for the period was 6.3 days.”

Meanwhile, in its monthly economic review, the Maldives Monetary Authority (MMA) noted that tourist arrivals in May reached 91,296 visitors, which was an increase of 15 percent in annual terms.

“However, when compared to the previous month tourist arrivals showed a decline of 13 percent. The annual increase in arrival was contributed by the increase in the number of arrivals from Asia, despite the decline in number of arrivals from Europe,” the central bank observed.

“In May 2014, total bed nights rose by 4 percent in annual terms while the average duration of stay declined by 9 percent. With the increase in bed nights, the occupancy rate increased marginally to 68 percent in May 2014 compared to the same period last year.”

Chinese market

A consultation meeting was meanwhile held earlier this month – facilitated by Mega Maldives Airlines – between Maldivian government representatives and Chinese travel agents to discuss the potential of further increasing Chinese tourists to the country.

The Maldives was represented by Deputy Tourism Minister Hussain Lirar and Maldives Marketing and Public Relations Corporation (MMPRC) Managing Director Abdulla while the travel agents included CYTS, CAISSA, Russian Vision, Beijing Sunshine, Wendy Feeling, CTRIP, and Tuniu, Mega Maldives noted in a press release.

According to the airline, “significant ground work was done to address the concerns raised by the market as well as working on ways in which both parties can work to further improve the market.”

The government’s recently introduced guest house island policy was meanwhile received with enthusiasm by the Chinese tour operators.

“The agents were enthusiastic about the development of 2000 bed capacity in the mid-market range while at the same time retaining the resort concept and were keen to work with the local partners to block rooms in the future,” the statement said.

“The agents highlighted the importance of further marketing campaigns in China and developing a safe environment for the Chinese tourists. The agents also further emphasized the importance of having more Chinese speakers in the resorts and airports that are equipped to give safety information to the tourists.”

Mega Maldives Airlines CEO George Weinmann meanwhile reportedly proposed incorporating a Travel Industry China-Maldives Association together with the Chinese travel agents and industry partners in the Maldives.

“The seminar was concluded with both parties agreeing to continue the dialogue to further improve the Chinese tourism arrivals to the Maldives,” the statement read.

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MATATO backs guest house island policy

The Maldives Association of Travel and Tour Operators (MATATO) has endorsed the Thumburi guest house island project, urging its members to take part in the government’s plans.

“MATATO believes this will help target mass charter flights, rather than FIT [Fully Independent Traveller] or small groups, paving the way to bring back major charter operators to the Maldives,” said the group which represents over 50 local travel agents and tour operators.

Only Maldivians will be permitted to invest in such projects, the government has revealed, with priority given to those not yet involved in the industry.

“The concept is similar to the beach lodges in Phuket or Hikkaduwa. Thus, MATATO would like to urge its members to participate in this development opportunity, as it would allow them to grow from mere travel agency businesses to property owners within the process of vertical integration of a travel agency,” read an association press release.

The official launch of the scheme – part of President Abdulla Yameen’s election manifesto – came last week with a call for expressions of interest from small and medium businesses in the Laamu atoll development.

Envisioned as a way to “responsibly diversify the tourism product of the Maldives”, the plans to develop uninhabited guest house islands come after the rapid expansion of guest houses alongside local communities in the past five years.

Some in the industry have, however, questioned the schemes ability to offer the same level of benefit to local economies.

“The association believes this is a good project, worth our attention and promotion, although fine tuning will still be required, as this is a new concept to the Maldives,” said MATATO which also suggested its members could form a consortium for the project.

The Thumburi project will make land available on the 17 hectare uninhabited island – as well as the linked Hulhiyandhoo island – for investors to develop hotels, a diving school, water sports centres, restaurants and shopping centres, while government owned companies will invest in the island’s basic infrastructure – electricity and sewage.

“Rather than seeking a large scale investment, the current scheme offers smaller investors an opportunity to invest only in specific sub products, or a small block of accommodation similar to that of investing in a guest house,” today’s MATATO press release continued.

Describing the project as “a new concept for a world class brand”, the Thumburi brochure reveals plans for several beach hotels with rooms ranging from US$100-200 – far less than that currently charged by the country’s budget resorts.

The Maldives Marketing and Public Relations Corporation will lead the project and engage with investors who will then market their own products.

Contributing an estimated 80 percent of the Maldives’ GDP and famous worldwide for it’s luxury one island/one resort image, the country’s tourism industry attracted over one million visitors for the first time in 2013.

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No threat to Maldivians in Srilanka, assures Sri Lankan foreign minister

Sri Lankan minister for External Affairs G.L. Peiris has assured that there is no threat to Maldivians residing in his country from ongoing conflicts between Muslims and Buddhists.

Speaking during the official state visit of President Mahinda Rajapaksa, Peiris said that the “happy and contented” Maldivian community living in Sri Lanka mostly reside in the southern parts of the country, far away from the zone of conflict.

“There is absolutely no problem in that area,” he said, adding that the conflict was going on in a very narrow area of Sri Lanka.

Rajapaksa’s two-day state visit is the first official visit of a foreign leader since President Yameen’s election, and has seen agreements signed related to health, investment, and search and rescue services.

Maldivian Foreign Minister Dhunya Maumoon – speaking at today’s press conference in Kurumba resort – said that the Maldivian government appreciated the steps taken by the Sri Lankan government to ensure the safety of the the 9,400 citizens in the Maldives.

“Not that there are no serious issues,” she said. “But the media sometimes sensationalise these issues.”

On June 16, 2014, reports emerged that hard-line Buddhists hurled gasoline bombs and looted homes and businesses during attacks in several Muslim towns in southwestern Sri Lanka, killing three Muslims and seriously wounding more than 50 people.

Dunya said that the Maldivian embassy in Sri Lanka was closely monitoring the situation on a daily basis. She also revealed that land in the Maldivian capital had been granted for Sri Lanka to set up a new diplomatic premises.

Following Rajapaksa’s arrival yesterday, official bilateral talks were held between the two governments as well as a private meeting between the two heads of state. A special banquet in honour of the Sri Lankan president and first lady was held at Kurumba yesterday evening.

Dunya today noted the close personal links between the two nations with Sri Lankan expatriate workers greatly assisting the Maldivian economy while more than 80,000 Maldivians visited Sri Lanka in 2012.

“We recognise and applaud the tremendous post-conflict reconstruction efforts of the Sri Lankan Government. We believe that the Sri Lankan Government and its people can address and overcome the challenges of post-conflict reconstruction and rehabilitation,” said the foreign minister.

Details of the health MoU were also revealed yesterday, with three specialists per year travelling to the Maldives as well as places for five Maldivian students to study medicine in Sri Lanka.

“Maldivians have been long standing consumers of the excellent education and health services in Sri Lanka. Under the agreement signed yesterday, the Maldives looks forward to further enhancing cooperation in the health sector, including in investing in human resources, recruitment of medical doctors and health professionals, and procurement of pharmaceuticals,” she added.

External Affairs Minister Peiris told press today that the agreements reached would have positive practical results for both nations, in particular new agreements on investment.

Trade between the two states grew by 40 percent last year, said Peiris, currently amounting to US$76 million – a figure he described as “satisfactory” with room for improvement.

“Major Sri Lankan investors are investing in the Maldives in a big way, particularly in tourism infrastructure,” he continued.

As part of today’s trip, a networking session was held in Malé for Sri Lanka’s business delegation, with Tourism Minister Ahmed Adeeb and Economic Development Minister Mohamed Saeed revealing details of investment opportunities in the Maldives.

Asked about discussions on Sri Lankan fishermen’s access to the travel through the Maldives’ territorial waters, Peiris said that such close allies had no need to hold official discussions “formally” about the right of innocent passage.

President Yameen had promised to explore during his corresponding trip to Sri Lanka in January, during which MoUs were signed regarding combating transnational crime , vocational training, and sports cooperation.

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Government seeks US$600 million from China and Japan for airport development

The government of Maldives is in talks with the Japan Bank for International Cooperation (JBIC) and China Exim Bank to secure a US$600 million for airport development.

Tourism Minister Ahmed Adeeb said the government is seeking US$200 million from JBIC and US$400 million from China’s Exim Bank to develop a terminal and runway respectively.

Sinagpore’s Changi Airport Group will be hired as consultants as they are better qualified to work with Chinese and Japanese contractors, he added.

The government is in the process of finalising an agreement with Changi, he said.

Speaking to the press on Tuesday, Adeeb said he does not expect a Singaporean tribunal’s ruling ordering the government to pay damages to former airport developer GMR Infrastructure for wrongful termination to affect the government’s new plans.

In abruptly terminating the contract, the government had chosen to protect the country’s multibillion-dollar tourism sector, Adeeb said. He claimed major airlines had threatened to cease operations in the Maldives following the GMR takeover – a move that may have led to collapse of tourism.

Compensation

Adeeb has dismissed opposition fears of an imminent sovereign debt crisis if forced to pay GMR’s initial claim of US$ 1.4 billion, repeatedly stating the government has the capacity to pay compensation.

“God willing, our airport will be developed. Our economy will grow with the special economic zone bill, and our government will become rich, we will overcome our budget deficit and god willing we will be able to pay any amount we have to,” he said.

Adeeb also said the arbitration tribunal had ruled out the US$1.4 billion claim as a large percentage of the claim is business opportunity losses.

The exact amount of compensation is to be set in a second phase of arbitration and will factor in concession fees and the amount GMR invested in INIA.

President Abdulla Yameen has previously predicted compensation to be approximately US$300 million, while former Attorney General Azima Shakoor in 2012 said the figure may be as high as US$700 million.

The World Bank in December said GMR’s compensation will place severe pressure on the country’s already “critically low” reserves.

As of April 2014, the Maldives’ gross foreign reserve stood at US$434.8 million, while total outstanding debt at the end of 2013 stood at US$793.6 million dollars.

GMR or tourism?

The concession agreement was “lopsided,” “biased” and negatively affected airline operations in the Maldives, Adeeb said.

“[I]t was either tourism or GMR contract. Only one of them would survive in the Maldives. Airlines were complaining, some airlines were moving out – as you know, for big airlines like Qatar, it is no big deal for them to stop operations here. For them, this is a very small market. If airlines stop operations, a country’s tourism will go bankrupt. We have seen the decline to tourism in Seychelles and Mauritius. We had to take action,” he said.

“IATA research shows seat capacity from Europe decreased from 2010 – 2012, and it was not affordable for charter airlines to fly to the Maldives. They were increasing fuel prices, by week, by month, for big scheduled airlines, without considering world prices, because they had a monopoly. Due to the agreement, there was nothing the government could do,” he added.

However, a 2013 Auditor General report presented a “mixed picture”, stating only Sri Lankan airlines definitively ceased refueling due to increased price of fuel.

Adeeb said he believed airport infrastructure are tourism investments, and pledged to integrate tourism and regional airport development.

“We want responsible investors, not just investors,” he said, adding that the government will sue former government officials who have caused losses to the government through lopsided business contracts.

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Government launches guest house island project

With additional reporting by Daniel Bosley

Details of the government’s first guest house island on Thumburi, in Laamu atoll, were revealed last night.

“Once again today we are looking to diversify tourism, to shape it in a different way. It does not mean moving away from the existing concept of having one resort on one island,” said President Abdulla Yameen during the launch.

Part of the Progressive Party of Maldives’ election manifesto, the guest house island concept aims to diversify the tourism industries to include small and medium enterprises, without encroaching on inhabited islands.

While guest house tourism on populated islands has grown rapidly in recent years, some in the industry have expressed concern that it may damage the high-end resort image of the Maldives.

The project – which will involve the development of a 2,100 bed resort run by multiple local businesses – was described as “communal tourism development” or “vertical tourism” by the president.

“So in this newly introduced concept, we are inviting various small and medium businesses who are interested in this industry to chip-in money – [it is a] type of tourism based on amounts which could be easily borrowed from banks as well,” he continued.

The president also revealed that further guest house island projects would be carried out within the special economic zones to be established under proposed legislation.

Speaking at yesterday’s event, Tourism Minister Ahmed Adeeb explained that the decision had come in response to medium sized businesses who wished to gain a foothold in the resort industry.

Only Maldivians will be permitted to invest in such projects, with priority given to those not yet involved in the industry, explained Adeeb.

The Maldives Marketing and Public Relations Corporation (MMPRC) will lead the project and engage with investors who will then market their own products.

MMPRC is currently fielding expressions of interest and expects to begin development by the end of the year.

“In our mind, the ultimate objective of this [project] would be increasing job opportunities and providing the opportunity to go forward benefiting the economy for many young Maldivians, and to double our per capita GDP income when our five-year term is completed,” President Yameen said at yesterday’s event.

Despite the tripling of guest house bed capacity in the past six years, the industry continues to be dominated by the one island/one resort model.

Growing from just 22 registered businesses in 2009, to 171 currently listed, the guest house tourism project – initiated during the presidency of Mohamed Nasheed – was introduced as an attempt to allow local communities to benefit from the billion dollar industry.

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Unsurprising developments: Malé and the atolls

The UNDP last week confirmed what most in the Maldives are only too aware of, that the lives of those in the capital Malé bear increasingly little resemblance to those in the outer atolls.

The country’s second Human Development Index report revealed the Malé area to have achieved a ‘highly developed’ score, while the rest of the country lagged behind in the middling bracket.

“Where one is born within the Maldives determines many of the opportunities and choices available to a person,” concluded the report.

While the UNDP will meet with relevant stakeholders in the coming weeks in order to discuss the implementation of policies that might bridge this divide, the government pushed ahead with plans which many feel will only exacerbate the problem.

Recent developments promise only bridge the divide between the the capital’s two largest islands, however, with the construction of the Malé-Hulhule bridge a prominent part of the government’s flagship plan to expand the reclaimed island into a ‘youth city’ of 50,000 people.

Meanwhile, responses to proposals for special economic zones in the country have ranged from skepticism to alarm as the country seeks to make itself attractive to foreign investors once again.

“What I see is that three quarters of the population would probably move to the capital and the rest of the country will be taken over by the corporations,” predicted Salma Fikry, a long-time campaigner for decentralisation.

“Everything is moving towards that direction and the Maldives will lose a lot of their culture – a lot of their lifestyle – these things that make us Maldivian,” she said.

“Unsurprising”

Both Fikry and the online social movement the Rajjethere Meehun Party (RMP) have described the UNDP’s findings as “unsurprising”.

Citing the failures of successive governments to foster sustained development in the atolls, Fikry noted that the lack of political will for such projects had deep historical roots.

“The whole point of decentralisation is scary for the Maldivian government because they like to keep people dependent, they like to think of themselves as doing people favours,” she said.

“It’s very deep-rooted – the government in Malé has feared that the southerners and the northerners might revolt against the government because this has happened in the past.”

The most notable instance of separatism in the country came in the late fifties as the country’s three southernmost atolls seceded from the nation to form the United Suvadive Republic, with a lack of central government assistance being cited as a major reason for the breakaway.

While the short-lived republic was forcefully brought back under the authority of Malé in 1963, the issues appear to remain, with both Fuvahmulah and Addu City councils complaining of a lack of government support in local development.

Fuvahmulah Island Council recently blamed the Ministry of Health for dangerously under-resourced health facilities – an accusation repeated in Kulhudhuffushi this week, and Addu City Council has recently resolved to develop its own guest house tourism industry.

The concentration of the country’s dominant tourism industry has remained in the central atolls despite the government’s initial tourism master plans envisioning an even spread after the initial clustering around the capital in 70s and 80s.

Last week’s UNDP report cited the presence, or the absence, of tourism as a major contributor to to human development levels in the country’s disparate regions.

Despite the development of numerous regional airports, just under 40 percent of the country’s tourism capacity is located in Malé’s Kaafu atoll, with a recent survey showing that 85 percent of the country’s 1 million plus annual visitors reach their destination in less than hour’s journey from the capital.

Addu atoll – the country’s second most populous urban area – currently hosts just 3.6 percent of the country’s bed capacity, while at the opposite end of the country, residents of the only atoll in the country without a resort – Haa Dhaal – recently launched an online campaign calling for equitable development.

Special Economic Zones

The Special Economic Zones bill – recently introduced to the People’s Majlis – has been touted as a way to incentivise foreign investments, reduce the country’s reliance on tourism, and bring rapid development to the Maldives.

Proposals for nine economic zones throughout the atolls, which will include generous tax breaks and relaxed government oversight, have been greeted by many with caution.

Speaking after the launch of the UNDP report last week, Governor of the Maldives Monetary Authority (MMA) Dr Azeema Adam said that, with these incentives, the only benefits that the zones could bring would be local jobs.

“In the special economic zones, developers have the right to bring any amount of expatriate workers as well, so we might be able to generate jobs, but if those jobs go to expatriates we are not going to reap the benefit of such development activities,” said Dr Azeema.

Added to the absence of local expertise in relevant industries, the MMA governor said that serious questions should be asked about the benefit to local people – a point seconded by the RMP.

“On first read, it sounds like a monster in the making,” said the group. “The picture we get is is a scary one. Huge corporate agendas that could overtake all local ownership as well as national ownership of the Maldivian archipelago.”

Minivan News was unable to obtain comment from the Ministry of Economic Development or the Local Government Association at the time of publication.

Both the RMP and Fikry noted that, once an area is allocated as a special zone under the bill, all areas under the jurisdiction of local councils can be taken over.

“Is that really what we want in the long term – do we really want to be under a special zone superintendent by giving away our right to participation in our own development and governance?” asked Fikry.

Both suggested a better option for local development might be to allow for fiscal decentralisation as envisioned in the 2010 Decentralisation Act – whose provisions have yet to be fully enacted.

Failure to fully devolve the powers outlined in the landmark legislation has prompted Addu City mayor Mohamed Soabe to describe the legislation as “just for show”, while Malé City Deputy Mayor Shifa Mohamed has accused the current government of attempting to destroy decentralisation.

This week’s UNDP reports noted – when conducted on an optimal scale – decentralisation can have “positive effects” on human development.

However, with local councils rendered impotent by a dependence on central government finance and the relentless expansion of the capital, neither Fikry nor the RMP are anticipating any surprising developments soon.

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Immigration detains 58 migrant workers in Laamu Gan

58 people were detained from Laamu Gan by the Department of Immigration and Emigration (DIE) yesterday as the government’s special operation to deport undocumented migrant workers continues.

“This operation will continue, that was the number of people we could transport yesterday. As soon as we get seats from a boat travelling to Malé, more people will be taken in,” said Laamu Gan Council President Ahmed Salah.

The council led the operation alongside the DIE, the Maldives Police Services (MPS), and the Maldives National Defence Force (MNDF).

“This [the operation] is good for the island and for the country as well. This will create a lot of job opportunities for Maldivians,” said Salah.

While the most common type of work conducted by immigrants on the island is agriculture and fisheries, some are engaged in other occupations such as masonry, odd jobbing, and working in restaurants. Maldivian laws prohibits both fisheries work and self-employment for expatriates.

Salah estimated there would be around five hundred migrant workers on the 5000-strong island, most of whom he suggested were undocumented, and some of whom had fled the island during the operation.

He also noted that some of the workers taken in during the operation had valid visas but were considered undocumented as they were either not doing the work their visas were issued for, or were working for a different employer.

Impact

The main reason for having such a large migrant worker population on the island was their low wage demands compared to what is expected by locals, explained Salah.

“People give them around MVR2000 [per month] and an additional MVR500 for food and provide them with accommodation. There are so many of them on fishing boats and doing agricultural work,” he added.

According to the council president, migrant workers rent houses with each of them paying around MVR150 each day – agricultural workers live in small huts built on their fields, and fishermen live on their boats.

Following the council’s recommendations on behalf of the public, DIE has agreed not to take any action against locals who employ undocumented workers, Solah said.

“People are employing migrant workers like this because the implementation authorities have allowed them to do so. So we are requesting immigration to at least not to fine them [local employers], and let this time be a warning and show some leniency. So no fine have been imposed on the employers,” he explained.

Prior to the current operation, the immigration department conducted a voluntary repatriation program, offering leniency for undocumented migrant workers who wished to return to their home countries voluntarily at their own expense.

The current programme was announced in April by the Minister of Defence and National Security Mohamed Nazim – also head of the Immigration Department – who promised that “within three to four months the whole Malé will be cleaned”.

According to Nazim the priority would be to deport those detained in the operation as soon as possible.

Earlier this month 33 undocumented workers were detained as part of this nationwide action, although Minivan News was unable to obtain a comment from the immigration department regarding the operation’s specifics.

Human Trafficking

The Maldives was recently removed from the US State Department’s tier two watch-list for human trafficking after remaining on it for four consecutive years, narrowly avoiding international sanctions.

While the 2014 US State Department’s Trafficking In Persons (TIP) Report highlighted the recently enacted anti-trafficking law and the opening of a shelter for victims of trafficking, the report noted that there are “serious problems” in enforcing the law protecting victims.

Some of these problems highlighted in the report include lack of procedures to identify victims among vulnerable populations, and inadequate training for officials.

The report further stated that “the government penalized some victims for offenses committed as a result of being trafficked and also deported thousands of migrants without adequately screening for indications of forced labor.”

These concerns were echoed by Human Rights Commission of the Maldives (HRCM) Jeehan Mahmood.

“In the absence of victim identification guidelines it is very likely that victims of human trafficking would be taken in during such operations, because there is no clear way to identify if such a person is a victim or not,” she said.

Jeehan did, however, note that the anti-trafficking steering committee established under the new counter trafficking act had already drafted a national guideline of internationally accepted standards.

She highlighted the need to criminalise human smuggling along with trafficking, explaining that the HRCM has proposed to amend the law for this purpose.

“The two are very different, it is an issue of consent. So there should be a specific definition for this. It is very important for the State to understand this. And without a clear definition a victim of trafficking could be prosecuted for that,” she said.

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Maldives off US State Department trafficking watchlist

The Maldives has been removed from the US State Department’s Tier 2 watch list for human trafficking following the introduction of legislation last December.

This year’s 2014 Trafficking in Persons (TIP) report – regarded as the key global measure of anti-trafficking efforts – sees the Maldives avoid relegation to Tier 3 along with the accompanying sanctions.

“The Government of Maldives does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so,” read the report.

The report – released yesterday (June 20) – saw Venezuela, Malaysia, and Thailand join 20 other countries deemed to be making no significant efforts to reduce trafficking.

Other states on Tier 3 include Zimbabwe, North Korea, Russia, Eritrea, and Saudi Arabia.

While the introduction of the Anti-trafficking Act in the Maldives was lauded, as well as the opening of the Maldives’ first shelter for trafficking victims and the first conviction for the offence, the report made a number of recommendations for further improvement.

“Serious problems in anti-trafficking law enforcement and victim protection remained,” said the TIP report, which noted that an unknown number of the approximately 200,000 expatriate workers in the country experienced forced labour.

Among the advice given in the report was the development of guidelines for public officials to “proactively identify” victims, noting that thousands of migrants have been deported recently without adequate screening for indications of trafficking.

A voluntary repatriation programme started last December for undocumented workers, while the government has pledged to detain and deport all undocumented workers in the capital Malé over the coming months.

The report called for greater efforts to ensure victims are not penalised for acts committed as a result of being trafficked as well as a systematic procedures for referring victims to care providers.

Recruitment and prosecution

It was noted that the newly introduced legislation made progress towards victim protection – including health care, shelter, counselling, and translation services, in addition to a 90-day in which victims can decide whether to assist authorities in criminal cases.

However, the report’s researchers observed that “victims were often afraid of making statements to the police because they did not believe effective action would be taken on their behalf.”

Blacklisted recruitment agencies – who often recruit migrant workers for up to US$4000 for non-existent jobs – often re-emerged under different names, the report explained.

A government report in 2011 revealed human trafficking to be the Maldives’ second most lucrative industry after tourism – worth an estimated US$ 123 million a year

“Observers reported that Maldivian firms could recruit large numbers of workers without authorities verifying the need for the number requested; this led to an oversupply of workers,” said the State Department report.

Minister of Defence and National Security Mohamed Nazim – also in charge of the Immigration Department – has previously announced that, within twelve months, recruitment quotas will only be issued to agencies rather than individuals.

Immigration Controller Hassan Ali was unavailable for comment at the time of publication.

It was also noted in the US report that authorities had again failed to criminally prosecute any labour recruitment agents or firms for fraudulent practices.

“Passport confiscation was a rampant practice by private employers and government ministries, who withheld the passports of foreign employees and victim witnesses in trafficking prosecutions the government did not prosecute any employers or officials for this offence.”

Furthermore, the State Department received reports of organised crime groups – some of whom were said to run prostitution rings – receiving political support.

Yesterday’s report also reiterated suggestions previously given to Minivan News by government officials regarding the disruption caused by the transfer of anti-trafficking efforts to the Ministry of Youth and Sports.

Questions over the state’s ability to implement the landmark legislation were evident throughout the Maldives country profile, as was the law’s failure to distinguish between smuggling and trafficking.

“Observers noted that trafficking-specific training was needed government-wide, especially for investigators, prosecutors and judges,” read the report.

The report’s final recommendation was that the Maldives acced to the UN Trafficking in Persons Protocol which supplements the 2000 Convention against Transnational Organised Crime.

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MDP to sue former President Waheed for defamation, damages over GMR airport deal cancellation

The Maldivian Democratic Party (MDP) is preparing to sue former President Dr Mohamed Waheed for defamation and damages over his administration’s unilateral termination of the GMR airport development deal.

The main opposition party announced in a press statement on Thursday (June 19), following a Singapore arbitration tribunal ruling that the agreement was “valid and binding”, that it would pursue legal action against the former president and other responsible parties in both Maldivian and international courts.

“Dr Mohamed Waheed Hassan Manik and his coup partners had spread falsehoods concerning the GMR agreement, incited hostility and antagonism towards the MDP among the public, and attempted to defame this party,” the press statement read.

“And [they] plunged the nation into serious strife and discord, paved for the way for a coup, and toppled the first democratically elected government of the Maldives in a coup d’etat.”

The party contended that Dr Waheed’s administration was responsible for the compensation the Maldivian government would likely have to pay GMR – which would be “a financial burden the country cannot bear” – as well as loss of investor confidence, soured bilateral relations, and the damage to the Maldives’ international reputation.

The concession agreement signed with the GMR-led consortium in July 2010 to Ibrahim Nasir International Airport was beneficial to the Maldives, the statement continued, and its abrupt termination was unlawful.

“Void ab initio”

In November 2012, following a campaign spearheaded by Adhaalath Party President Sheikh Imran Abdulla calling for the nationalisation of the airport, Dr Waheed’s cabinet declared the concession agreement void ab initio – invalid from the outset – and gave the consortium a seven-day ultimatum to hand over the airport.

On December 7, the government took over the airport and evicted GMR, prompting the Indian infrastructure giant to seek US$1.4 billion in compensation for “wrongful termination” of the contract – an amount that eclipses the country’s annual state budget.

In a letter sent to the Bombay Stock Exchange last week, GMR explained that the arbitration tribunal concluded the Maldivian government and the Maldives Airports Company Ltd (MACL) were “jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement.”

The determination of liability – the first of two phases of arbitration – will now be followed by the determining of compensation owed.

In the wake of the arbitration decision, Attorney General Mohamed Anil said that President Abdulla Yameen’s administration would honour the verdict while expressing confidence that the government would not have to pay the US$1.4 billion sought by GMR.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed. We always said we will have to pay compensation, and that this compensation has to come through the agreement,” Anil told reporters on Thursday.

President Yameen had predicted in April that GMR would only be owed US$300 million in compensation.

False pretext

Meanwhile, addressing supporters in Malé at an MDP maahefun (traditional celebratory feast ahead of Ramadan) Thursday night, former President Mohamed Nasheed argued that opposition parties misled the public to topple the MDP government in February 2012 with false allegations.

Opposition parties at the time had claimed that privatising the international airport posed a threat to Maldivian independence and sovereignty as well as Islam, Nasheed recalled.

The concession agreement with the GMR-led consortium was characterised as detrimental to the Maldives, he added, which was used as the pretext for the “coup” on February 7.

“Today it is becoming clear to us that the agreement was valid, and that it was terminated in violation of legal principles as well as international norms, in a way that causes serious damage to the Maldivian people,” Nasheed suggested.

Referring to AG Anil’s insistence that the compensation figure would not be too high, Nasheed accused President Yameen’s administration of continuing to mislead the public.

Nasheed stressed that the amount owed to GMR as compensation was not yet clear, noting however that the arbitration tribunal has ordered the government to pay US$4 million to the company to cover its legal expenses.

“The question we are asking now is, who will be paying those dollars? The dollars will be paid from our pockets. Legal action must be taken against those responsible for us having to pay these dollars,” he insisted.

“We have to seek compensation for the damage caused to our government. We know, we can see, that President Yameen’s government will not last. We know that President Yameen’s government does not have the support of the people. They cannot rule over all of the people in this country with the support of just 25 percent of the public.”

Changing the current government was “a duty and an obligation” for the MDP, the former president said, advising supporters not to despair.

“God willing, our courage will not flag. We will not be afraid and we will not back down either,” he said.

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