Business & Tourism – Page 38 – Minivan News

International airports body urges caution over foreign investment in Ibrahim Nasir International Airport

Airports Council International (ACI), the global body representing the world’s airports, has advised its members to exercise caution before making any investment in the Maldives relating to Ibrahim Nasir International Airport (INIA).

In an email obtained by Minivan News dated May 8, ACI alerted its members that the Maldivian government is “in the process of transferring the Male’ airport to a wholly-owned subsidiary of MACL and may explore a sale of equity in this entity to another airport operator.”

“ACI members are advised to conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework,” the email states.

The cautionary note emphasises that ACI was “not taking sides with respect to the decisions made by the various parties”, and matter-of-factly outlines the government’s sudden termination of the concession agreement with the GMR-Malaysia Airports (GMR-MAHB) consortium to manage and upgrade Ibrahim Nasir International Airport (INIA).

The government declared the 25 year concession agreement ‘void ab initio’ in November 2012 and gave the foreign investors seven days to hand over the unfinished airport to the government-owned Maldives Airports Company Limited (MACL).

While subsequent arbitration proceedings saw the Singapore Supreme Court endorse the government’s right to expropriate the airport, ACI noted that “this was subject to [the government] offering sufficient compensation pursuant to the concession agreement”.

“However on December 8 MACL/Government of Maldives took over the possession and control of the airport without payment of compensation”, the email stated.

ACI informed its members that the takeover was the subject of arbitration proceedings expected to last 9-12 months, and further noted that as the government had guaranteed bank loans used by the developer, these were also the subject of separate proceedings.

With elections scheduled for September, ACI advised it was possible that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

MACL and MIAL

On March 14, the government declared in a one-line statement that it was establishing by presidential decree a new 100 percent state-owned company, Male’ International Airport Limited (MIAL).

On March 31, President Dr Mohamed Waheed appointed MIAL’s board of directors, including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, as chairman, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Other directors appointed included Thoriq Ibrahim of G. Noomaraahiya, Ahmed Munavvaru of Gaafu Dhaalu Madaveli Gahaa, Abdulla Yazeed of Dhaftharu, and Ibrahim Iyas of Dhaftharu.

The decision to form MIAL last month led GMR-MAHB’s lender Axis Bank to accuse the government of trying to turn MACL into a shell company, and warning it not to transfer MACL’s assets or function while arbitration was pending.

“Given that Axis Bank’s claim under the direct agreement is against MACL, you will understand that Axis Bank views with the greatest concern any attempt to dissipate the assets of MACL in favour of MIAL or any other third party,” wrote Axis Bank’s CEO Bimal Bhattacharyya in a letter copied to MACL and the Ministry of Finance, dated April 22.

“If MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell,” writes Bhattacharyya in the letter, obtained by Minivan News.

The letter calls on the government to “confirm or deny” its intentions by April 25, and “undertake not to allow any assignment, transfer or disposition of any of MACL’s rights to manage and or operate Male airport to MIAL or any third party… or allow MIAL or any third party to perform any function of managing or operating Male’ airport which is presently performed by MACL” by April 27.

“Please understand that Axis Bank views any dissipation of MACL’s assets with grave concern, and will take the necessary legal action to prevent such a dissipation”, the bank advised.

MIAL’s appointed CEO Bandhu Saleem confirmed to Minivan News that the government did intend MIAL to manage the airport, but said the process of transferring that responsibility over from MACL had run into “hurdles” relating to its current legal issues.

“The board has been appointed, but I have not yet taken on the role,” he said, noting that the new company was waiting on government clearances and had yet to be officially created.

“Until the arbitration is complete, I think it will be very difficult to start a new company,” he added.

Axis Bank loans and compensation claim

A legal submission detailing the Axis Bank dispute, also obtained by Minivan News, notes MACL’s failure to notify Axis Bank of its intention to terminate the concession agreement within 60 days, as required in the bank’s direct agreement.

An included copy of the November 24, 2010 agreement, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

The document shows that Axis Bank is seeking the repayment of US$160 million by the government of Maldives due to MACL’s breaching its obligations under the agreement.

At the same time, the governor of the Maldives’ central banking authority recently warned parliament that the Maldives’ gross state reserves had fallen to little more than US$300 million, after the government was compelled to repay a series of US$50 million loans the State Bank of India declined to roll over at the start of 2013.

Repayment of the Axis Bank loan could place the Maldives in a position where it has less than a month of imports in reserve – a potential crisis for an island nation 100 percent dependent on imports for basic subsistence.

The government meanwhile contends that it is not subject to termination and associated clauses relating to a contract it has deemed ‘void from the outset’.

“Under the terms of the direct agreement, these loans would be repayable if the concession was terminated early, as defined in the direct agreement. The government contends, however, that if the concession agreement is void ab inito, then these terms do not apply,” reads a special audit commissioned by the Auditor General.

Present situation

With arbitration pending and efforts to create a new management company having apparently stalled for the time being, the outlook for the airport remains uncertain.

Much will be dictated by the election in September. Former President Mohamed Nasheed has said he will invite GMR-MAHB to return should his party resume government, while the Progressive Party of the Maldives (PPM) has declared one of GMR-MAHB’s most voracious opponents, ex- Home Minister Dr Mohamed Jameel, as the party’s Vice-Presidential candidate.

The government’s special audit of the project shows the upgrade and construction of the new terminal was 25 percent complete as of October 31, 2013.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR-MAHB] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report noted.

Former Transport Minister Dr Ahmed Shamheed, who was dismissed by the government in November 2012, warned in January 2013 the airport needed urgent work to reach acceptable standards, that was outside local capabilities.

“To get the airport to the right level, they will need to bring in outside help,” he told Minivan News at the time.

“The airport is in very bad shape right now and work is needed on the runway, all of which cannot be done without finance.”

Ibrahim Nasir International Airport was meanwhile dubbed the ‘Indian Ocean’s Leading Airport 2013′ at the Indian Ocean World Travel Awards on May 12.

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Cost of proposed seaplane operations to local islands “unreasonably high”: Transport Ministry

The Ministry of Transport and Communications has decided to negotiate with seaplane operators Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) to reduce the cost of flights to the atolls, which the ministry believes is “unreasonably high”, reports local media.

The companies submitted a joint proposal in response to the planned Maldivian government initiative to expand seaplane services to the islands to improve the country’s transportation network.

Director General of Regional Airports at the Transport Ministry Saamee Ageel told local media today that the prices quoted by TMA and MAT were “unreasonably high”. The companies proposed being exempt from all aviation surcharges and would charge US$95 (MVR 1,464.90) per trip, per person.

The joint proposal also requested the government compensate the companies if the seaplanes travel with less than 12 passengers on any trip, according to Ageel.

“If that is the case, the government would have to pay about MVR 800,000 (US$51,880.67) per month. These are unreasonably high prices for the government. The government is trying to do this in a sustainable way,” Ageel said.

The Government of Maldives signed an agreement with MAT on September 18, 2012, for the company to provide seaplane services to the islands. Ageel said that agreement has since been terminated.

Currently MAT and TMA make scheduled flights to tourist resorts only.

US-based private equity fund Blackstone bought a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT), in February 2013.

Blackstone, with annual revenue of US$3.119 billion and total assets of US$18.845 billion, bought the seaplane operators for an undisclosed sum.

Senior Managing Director and Chief Investment Officer at Blackstone’s Private Equity unit based in New York, Prakash Melwani, said the investment “will enable us to build a strong partnership with the Maldives.”

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Comment: Travel awards for the less privileged

The World Travel Awards event held at Paradise Island on Sunday night was a resounding success for tourism in Maldives.

Out of a possible 57 awards in the Indian Ocean category, the Maldives won 35 including the ‘Leading Destination’ title. All the wins listed on the worldtravelawards.com site seem to solidify Maldives’ position as the leading travel destination in the region.

In fact, this success certainly disproves the theory that the tourism industry has taken a hit from the February 2012 transfer of power.

So how does the pageant touted by some as the Oscars of the travel and tourism industry stack up against the likes of British Guild of Travel Writers’ (BGTW) Tourism Awards or the Michelin Green Guide?

The obvious difference between World Travel Awards and most of its competition is the former’s expansive list of categories and titles. The BGTW Tourism Awards has fewer categories in which thousands of potential businesses across the globe compete.

In contrast, businesses have a much better chance of taking a win from competing in the World Travel Awards. However, that maybe the only thing the World Travel Awards has going for it, because behind the veil of all the glitz and gala is a highly questionable business.

The first item of interest is the contact address given on the worldtravelawards.com website. The address ‘SE1 8SJ, London’ comes up as a stall in the visitor centre in London’s Waterloo Station.

For an awards show with 20 years of history, a stall in a visitor centre seems a little too modest. What is more surprising is that the address is home to another 33 companies under the same ownership as the World Travel Awards Limited, the company running the awards.

The World Travel Awards Limited is currently owned by a single shareholder, a Mr Graham Edward Cooke, who has listed Bayham Hall, Bayham Abbey in Kent as his address in the company’s articles of association. The company was originally registered with four shareholders holding a total of 200 shares worth a total value of GBP£200.

In the latest annual return filed by the company, the capital situation remained the same whilst Mr Graham Edward Cooke had become the sole owner. The company secretary is a Miss Manyoung Han.

Like the registered address of the company, Mr. Cooke and Miss Han also have highly quizzical places of residence. The website companiesintheuk.co.uk lists 101 other individuals and 24 other companies sharing the same address as Mr Cooke, and 46 individuals and 8 companies sharing Miss Han’s address. This clearly indicates that both addresses are for mail forwarding services.

As for the company’s address, 33 other companies sharing it suggests that it too may be another mail forwarding service. As for the 33 other companies owned by Mr Cooke, they have all posted little or no profits and have had dozens of dissolution notices served across the lot of them.

Why then did the Maldives Tourism Promotion Board enlist the services of this company given its questionable reputation?

Perhaps the lack of reputation is in itself an advantage. Since the company never declared a capital greater than GBP£200 throughout its existence it would not be difficult to incentivise the declaration of more wins for the Maldives. This leaves two questions to be answered.

Firstly, did the government of Maldives truly know that the company they were dealing with was really a shell corporation? If it did not, then did they really pay exorbitant sums to advertise on the awards website?

The second question is, if the government did know the nature of the company, why then were they given such broad coverage?

Could that not be interpreted as the country’s admission of the weakness of its tourism industry? Should it not be engaging a stronger partner like Michelin instead?

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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Singaporean woman drowns at Embudu Village Resort

A Singaporean woman on vacation with her husband at Embudu Village Resort died while snorkeling, the second such incident at the resort in the past three years.

The 34 year-old Singaporean, Irene Soon, drowned last Saturday (May 4) in a snorkelling accident at Embudu Village resort, located eight kilometres from Male’ in Kaafu Atoll.

Soon was snorkeling near the main jetty area of the resort and is believed to have drowned, however the case is still under investigation a police media official told Minivan News today (May 12).

Soon, an insurance manager, was vacationing with her husband in the Maldives to celebrate her recent promotion. Soon and her 37 year-old husband Mike Lie were snorkeling for the first time and taking photos with a rented underwater camera when the incident occurred, reported Singaporean publication the New Paper.

The publication claims that a dive instructor ran over after Soon had been pulled from the water and asked Lie how long she had been underwater. Allegedly Lie responded that he was unsure, but “maybe 10 minutes”.

Lie then asked the “Aren’t you going to CPR (cardiopulmonary resuscitation) or something?” at which point the dive instructor said “there was no point”, claims the publication.

“She was snorkeling with her husband, taking photographs then somebody saw her motionless, lifeless, in the water,” Embudu Village General Manager Ramsay Perera told Minivan News today.

“The dive instructor did give emergency care and performed CPR. She was then taken to ADK hospital via speed boat,” he claimed.

Perera explained that the dive school staff is “well equipped” and trained in CPR, however there is no in house doctor at the resort.

“The dive school staff are very observant most of the time. It was calm weather and very shallow water. She was briefed [about snorkeling safety] when she arrived at the resort and was wearing a life-jacket, snorkel and fins [when the incident occurred],” Perera said.

Snorkel at your own risk

After approximately an hour of snorkeling Lie decided to take a break because saltwater was “getting into his mask and nose”. Lie was standing in shallow water next to the resort’s pier watching his wife continue to snorkel and diverted his gaze for five minutes to watch a group of guests learning to scuba dive. When Lie looked back for his wife, she was nowhere to be seen.

“That was when I realised, ‘Oh my goodness,’ the weather is bad, cloudy and drizzling. I decided to swim out,” Lie said. “I was worried, I wanted to get her out of the weather and say it was time to go back.”

While Lie hurried to put his snorkelling gear back on to swim out and look for Soon, she was being pulled from the water by a German uncle and nephew, with her body face down on the seabed.

The German tourists noticed that Soon’s snorkeling tube was underwater and swam out to where she was floating.

“I was shocked, I wondered what I could do to save her. Her fingernails and toenails were purple. I tried calling her name, she didn’t answer. I frantically felt for her pulse, but there was none,” said Lie.

Soon was snorkeling in water about one metre deep. “It would have taken effort for her to stand with flippers on her feet and corals below,” explained Lie.

Soon was not a strong swimmer and her husband recalled swimming together fewer than 10 times in the last 12 years they had known each other. “She wouldn’t do laps, just short distances,” Lie recalled.

Lie said there no lifeguards were present at the Embudu Village beach, however he and his wife had been briefed about water safety upon their arrival at the resort. During the briefing, entry points into the water and coral bed areas were discussed, as well as advice not to swim too far away from shore. They were also told that “activities were carried out at their own risk”.

Lie returned to Singapore May 6 and Soon’s body arrived the morning of May 9. During her wake, Lie told Singaporean media that he regrets “taking his eyes off my wife.. or else, this might not have happened.”

Second death

Soon’s drowning is the second such incident at Embudu Village Resort. In February 2010, a 69 year-old German tourist died while snorkelling at the resort.

A senior staff member at Embudu Village told Minivan News at the time that the man was snorkeling with his friend.

”His friend noticed that he had been floating in the water without movement for a while and went to help him,” the staff member said at the time. ”When he shook him he did not move, so he knew that something was wrong. The sea was calm and there was low tide at the time.”

There have been a string of tourist deaths while snorkeling in recent years.

A 51 year-old Italian tourist died in a boat propeller accident while snorkeling in January of this year near Elaa Island in Thaa Atoll.

During 2012, tourist deaths – usually while snorkelling – were disproportionately higher among Chinese visitors, who now account for a majority of Maldives tourist arrivals compared to the country’s traditional European market.

Mohamed Ibrahim ‘Sim’ from the Maldives Association of Tourism Industry (MATI) pointed out in a 2012 interview with Minivan News that Chinese guests in particular needed to be made more aware of the dangers of snorkeling in the Maldives, “because it is a totally different environment than what they are used to.”

Many resorts and Chinese tour operators have reacted to the higher incidence of casualties by issuing life-jackets to Chinese guests on arrival. However, despite efforts to adapt to a market which in 2011 brought over 100,000 visitors to resort beaches and house reefs, Sim observed that “things still have not changed” as Chinese fatalities remain higher compared to European market.

Two Chinese nationals vacationing on two different resorts in the Maldives were found dead within 48 hours in suspected snorkeling accidents in 2012.

A Chinese woman identified as Shuhui Li, aged 58, was pronounced dead after she was pulled out from the waters of Lily Beach resort on January 26, 2012, while a Chinese man identified as Ding Hai, aged 30, was found dead whilst snorkeling at the newly-opened Ayada resort the following afternoon.

In October 2012, a 26 year-old male from China staying at Alif Dhaal Atoll Vakafaru resort was suspected to have died in a snorkelling accident at the property.

In December 2012, a Chinese tourist was reported missing from the Bandos Island Resort and Spa property.

Earlier in 2012, a French tourist, identified as 49 year-old Alan Marshall, went missing during a late afternoon swim while vacationing on Club Med Kanifinolhu resort with his wife, daughter and son-in-law. A day later he was found dead near Paradise Island Resort.

A 36 year-old Chinese tourist was also found dead off the coast of Sun Island Resort and Spa in January 2011.

In August 2011, a decomposing female body was found on the shore of the Adhaaran Hudhuranfushi resort, a week after a 29 year-old Japanese tourist and her 37 year-old husband were reported missing from the property.

On March 14, 2010 police received a report that a Chinese national, Rui Dai, died while snorkeling at Holiday Inn Kandooma Resort, in Kaafu Atoll.

Earlier that same month another Chinese man died while snorkeling at Chaaya Lagoon Hakurahura Island Resort, less than a day after a German tourist died in a snorkeling accident at Embudu Village Island Resort.

In mid-August 2010 a Chinese couple vacationing in the Maldives disappeared from their resort after going for a swim. The 38 year-old woman and 40 year-old man were staying with their 13 year-old daughter on the Hilton Irufushi Beach and Spa Resort in Noonu Atoll.

In September 2010 a 48-year old Chinese woman died while snorkeling at Paradise Island Resort and Spa.

A top UK transplant surgeon died while snorkeling on holiday at the Adaaran Meedhupparu Resort in Raa Atoll in September 2010.

The following month, Sharon Duval, a 42 year-old British woman died while on honeymoon. Her body was found on the shore of Kuredhoo Island Resort.

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Hilton in talks following contract termination as staff allege political harassment from new management

Hilton has said discussions are continuing with operator Sun Tour and Travels over the local company’s decision to abruptly terminate its contract to manage the Maldives Iru Fushi Resort last week.

The claims were made as staff at the property alleged some workers are now facing harassment over their political alignments following the termination of the resort giant’s management contract.

Sun Tour and Travels announced on May 1 that it was terminating Hilton’s agreement to manage the Noonu Atoll-based resort, with sources on the island accusing the local tour operator of giving the multinational company barely 24 hours notice to cease their operations before they were asked to leave. The resort is now being run as the Maldives Iru Fushi Resort and Spa.

The Hilton group, which continues to manage the Conrad Maldives Rangali Island property in the country, today confirmed to Minivan News that it was still in discussions with the resort’s owner, Sun Travel and Tours regarding the matter. Hilton said it could not therefore confirm what action it would take to resolve the matter.

Sun Travel and Tours is owned and operated by MP Ahmed Shiyam, a local businessman and media magnate, who last year founded his own political party, the Maldives Development Alliance (MDA).

Current resort General Manager Abdulla Thamheed today said he was “not the right person” at Sun to speak on the decision to terminate the Hilton contract, requesting Minivan News instead contact a media official at the company’s head offices in Male’. The nominated spokesperson was not responding to calls or e-mails at time of press.

However, a member of staff at the resort, speaking on condition of anonymity, said workers were continuing to perform their duties at the site, despite claiming that 40 employees had resigned since the termination of the Hilton contract last week.

“Staff are working as hard right now as they were before,” the source claimed. “We need the money for our families.”

Job security fears

The employee alleged nonetheless that a work environment had “recently” developed resulting in staff being “fearful” of talking politics on the resort during their free time.

Since the termination of Hilton’s agreement, the resort source accused certain management and staff at the resort backing MP Shiyam’s MDA party and making verbal threats against workers who held different political beliefs.

“When Hilton was here, there was freedom to talk about politics, whatever party you supported,” the source said. “No one was holding campaigns here for parties or anything, but now just talking about politics is a problem. This has happened recently.”

The staff member accused some staff of acting as “MDA spies” for MP Shiyam’s political party, leading to fears about job prospects at the site for those with differing political views.

“People are really afraid to talk here now. We know that some people here represent the MDA [party] and we have heard them warn others ‘we have the power now’ – these are words they are using,” the source claimed. “We do not have job security right now.”

Outside of talking politics at the resort, the same source alleged that staff had lately found their access to televised news media being restricted in the staff area to private pro-government aligned broadcaster DhiTV.

The employee said requests by some workers for access to other private broadcasters such as VTV and Raajee TV – media owned by political and business rivals of Shiyam or perceived as being aligned with the opposition politicians – were currently awaiting management approval.

Complaints

The Tourism Employees Association of Maldives (TEAM) today claimed it had continued to receive complaints from workers at the resort before and after the termination of the Hilton management agreement concerning attempts to politicise staff.

TEAM Secretary General Mauroof Zakir said he had received information that management had been hiring local MDA members to replace staff members who resigned over the last week.

However, Zakir added that he had also been informed by various members of staff that Sun Travels had brought in a number of experienced managers from its wider operations to the resort to ensure it was running more smoothly after alleged difficulties following the changeover.

“Things seem to be much more under control at the site now, staff told me,” he said.

Zakir had expressed concern about a lack of response from tourism officials and industry bodies about the nature of the change of management and allegations of political influence at the resort.

Minivan News was awaiting a response from Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal at time of press.

Aftermath

Sources at the resort have alleged there have been a number of cancellations from Hilton loyalty members over the decision to terminate the company’s contract, as well as complaints from some guests concerning security at the site after police were summoned to the property earlier in the week.

However, the same source stressed that the Sun Travels and Tours had provide compensation packages for guests at the property following the change in management.

Police Spokesperson Chief Inspector Hassan Haneef confirmed this week that police had attended the resort on May 4 in response to allegations that three female Maldivians staying at the property had been harassed.

Haneef said police arrived at the site to investigate after receiving a complaint from resort management over alleged harassment of some guests by an unidentified suspect.

He claimed that police had insufficient information to identify a suspect at the time of press.

Earlier this week, sources at several large local travel operators based in Male’ confirmed to Minivan News that some bookings for the property had been cancelled as a result of Hilton no longer operating the site.

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Maldives launches US$3.38 million eco-tourism wetland conservation project

With the launch of a US$ 3.83 million eco-tourism wetland conservation project, the Maldives continues to push forward with climate change mitigation and adaptation initiatives, aiming to serve as a model for small island states.

The Environment Ministry eco-tourism initiative will create wetland conservation areas and enhance drainage systems on Hithadhoo Island – an administrative district of Addu City – and on Fuvahmulah Island, in the far south of the Maldives.

The project aims to address climate change impacts by mitigating flooding and erosion due to storm surge, enhance fresh water security, as well as create economic benefits from these sustainable conservation initiatives. Additional mitigation and adaptation components of this Climate Change Trust Fund (CCTF) supported project include coral reef monitoring in Kaafu Atoll, and rainwater harvesting on Ukulhas Island in Ari Atoll.

“This is the first such project in the Maldives with a conservation plan to develop eco-tourism on an inhabited island. Developing a firm and systematic plan to manage and gain economic benefits from these wetland areas could play a vital role in changing the interpretation of the people regarding them,” Environment Minister Dr Mariyam Shakeela told local media during the project’s inauguration ceremony yesterday (May 7).

“We strongly believe that the environment is the only asset that the Maldives has to market ourselves to the international community,” Vice President Mohamed Waheed Deen said while speaking at the project launch.

“Our beauty, whether it is underwater, above water, or wetlands, these are all God’s blessings, nature’s blessings. Unless we know how to look after God’s blessings they will disappear,” he added.

The Vice President also thanked the international community and project donors for recognising that the Maldives has been a minor contributor to global pollution, particularly greenhouse gas emissions, but has “quite unfortunately become a victim” of the resulting climate change impacts.

“I sincerely support the world community for lending support to the Maldives because we believe this is the only way we can make our land, our assets economically viable, and sustainable,” stated Deen.

He emphasised that once the environment has been degraded, it is not possible to restore to its original pristine state, therefore properly implemented environmental conservation can also develop the Maldives’ economy.

Deen noted that the Maldives’ environmental policies have “never changed” and the current government are also “strong environmentalists”, akin to former President Maumoon Gayoom and former President Mohamed Nasheed.

“The Government of Maldives will assure you that the environmental policy maintained by the last two presidents is still maintained,” he stated.

Community-based conservation

The Wetlands Conservation and Coral Reef Monitoring for Adaptation to Climate Change (WCCM) project will be implemented in three phases over 18 months, to be completed in September 2014.

Phase one consists of developing a conservation plan, designing an eco-tourism methodology, and improving water drainage systems. During phase two, eco-tourism facilities will be established in addition to continued water drainage “system rehabilitation”. Phase three includes commissioning a RAMSAR (convention) wetland and national park with eco-tourism.

“The idea is that these are terrestrial wetlands, in the vicinity of the community, so we are trying to manage these protected areas with the help of the community,” Environmental Protection Agency (EPA) Environment and Social Safeguards Coordinator Ibrahim Mohamed told Minivan News yesterday.

Mohamed explained that the nearby communities will be the main implementing partners managing the wetland areas and local NGOs are hoped to contribute as well. A “pool of people” will be trained to manage the areas and act as tour guides.

“There will be a visitor centre and a fee and go into the area accompanied by tour guides, it’s going to be like a national park,” said Mohamed.

“These are very beautiful places, that you will immediately sense are very different from the rest of the Maldives, given the [large] size of the islands and the unique way they are connected.

“In Fuvahmulah there are huge fresh water bodies, swampy areas in the depressions of the islands. While the Hithadhoo wetlands are a huge area with mangroves. There are so many birds here, you will always see so many,” he added.

Spanish company Hidra has been hired to prepare the phase one components over the next five months, including the community-based wetland management plan, for which extensive public consultations – including students – are being conducted.

“Then we will start the civil works, such as making the nature trails, visitors center, and bird watching areas,” said Mohamed.

Public private partnerships

The coral reef monitoring component of this conservation project will involve partnering with resorts in Kaafu Atoll, explained Mohamed. They will be trained by the Environment Ministry to monitor water surface temperatures, erosion, biodiversity, bleaching, impacts on fish, as well as “fish landings” to determine where fish being brought to the resorts are caught.

The goal is long-term monitoring of reefs nationwide, however this project will begin by looking atfive. Currently coral reef monitoring is limited, because it primarily focuses on bleaching and is only conducted twice annually, in accordance with the monsoon and dry seasons, according to Mohamed.

“We have started developing the database and the [monitoring] protocols, which have been peerreviewed by international reef ecologists,” said Mohamed.

“The idea is that over 10 to 15 years we will know what is happening to the coral reefs, so that we can determine the impacts from climate change,” he added.

“Exemplary example for small island states”

Mohamed stated that the overall goal is for these wetland and coral reef areas – and the entire nation – to be protected and developed sustainably to become biosphere reserves.

He further explained that the idea behind this CCTF project is for the Maldives to become an exemplary example for other small island states.

“This project can be replicated anywhere in the world, all small island countries can utilize [what the Maldives has developed],” he added.

The holistic approach to wetland and coral reef conservation is necessary because the components are “so interrelated”.

“If you don’t properly manage waste there will be impacts on coral reefs, etc.,” noted Mohamed.

The CCTF serves as the “main umbrella” under which there are three projects in the Maldives: the WCCM, clean energy for climate mitigation, and solid waste management. The WCCM in particular is supported with donated funds from the European Union and Australian Aid, and managed by the World Bank.

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Maldives included in United Nations’ US$2 million anti-piracy project

United Nations Trust Fund for the Fight against Piracy has approved a US$2 million package of projects for affected nations, including the Maldives.

The aim of the five projects, approved April 30, is to ensure ongoing piracy trials are conducted in a fair and efficient manner and that the human rights, health and safety of individuals suspected of piracy are protected. This includes facilitating the repatriation of detainees suspected of piracy from the Maldives to Somalia.

Other initiatives involve providing support to law enforcement authorities and prosecutors in “front-line States” to investigate illicit financial flows from piracy. Biometrics-based fishermen database systems will also be implemented to support monitoring and surveillance of fisheries resources, while also providing important information to counter-piracy forces. Projects have been approved for Somalia, Djibouti, Ethiopia, Kenya, the Seychelles, and the Maldives.

United Nations Assistant-Secretary-General for Political Affairs Tayé-Brook Zerihoun acknowledged the gains made in controlling piracy, but stressed that the international community “should not be under any illusion that piracy has been conclusively brought under control” during the announcement of the projects in New York.

“The dramatic decline in pirate attacks is clear evidence of years of hard work by United Nations Member States, international and regional organizations, and actors in the shipping industry,” said Zerihoun.

“The international community should continue to support the efforts of Somalia and States in the region to strengthen their maritime law enforcement capacities and their rule of law sector.

“With the Trust Fund’s resources largely spent, now is the time to replenish the Fund to bridge critical gaps in counter-piracy efforts,” he added.

The United Nations Trust Fund for the Fight against Piracy was established in 2010 and have received approximately US$17 million in contributions from member states and the maritime industry. The funds have been used for 31 projects, totalling approximately US$16 million, and “short-term needs related to unforeseen expenditures”.

The purpose of the trust fund is to “defray expenses” associated with prosecuting suspected pirates and undertaking other activities to fight piracy.

The trust fund’s Board is comprised of 10 voting member States – Germany, Italy, Kenya, Republic of Korea, Norway, Qatar, Seychelles, Somalia, Turkey, and the United Kingdom – and three non-voting entities, the International Maritime Organization (IMO), the United Nations Office on Drugs and Crime (UNODC), and the United Nations Political Office for Somalia (UNPOS).

Piracy threat

The Maldives is situated at a strategic intersection of sea trade routes, and a significant amount of global maritime traffic passes through or near the country’s northern atolls.

Due to increasing pirate attacks in the Indian Ocean and the frequent encounters with Somali castaways in Maldivian territory, maritime experts have speculated that the piracy threat is growing in Maldives.

“We are very concerned about piracy in the Maldives since we are located in the Indian Ocean, one of the major areas [at risk],” Foreign Ministry Spokesperson Ibrahim Muaz Ali told Minivan News today (May 6).

“The Maldives has already raised these issues with international organisations and international media,” he added.

Ali confirmed that although recent joint military exercises with neighboring SAARC countries, such as India and Pakistan, were not solely for anti-piracy purposes, that issue was included.

“We are seeking protection [from pirate attacks] from SAARC countries,” said Ali.

In an effort to address the growing threat of piracy and rising concerns over the security within Maldivian territorial waters and the wider Indian Ocean, the Government proposed an anti-Piracy bill in January 2013.

The stated purpose of the bill is to establish a legal framework to deal with piracy within the territorial waters of the Maldives amidst concerns at the growing risk of maritime crime in the Indian Ocean over the last few years.

The bill also seeks to outline legal procedures to deal with individuals suspected of committing acts of piracy within Maldivian territorial waters, give that such procedures do not presently exist in the country’s legal system.

Pirate attacks

The Maldives experienced the first confirmed case of piracy within its waters back in March 2012, when a Bolivian-flagged vessel headed for Iran was hijacked by Somali pirates. The vessel was released a few days later.

The Maldives’ government first expressed concern over the growing piracy threat in 2010 after small vessels containing Somali nationals began washing up on local islands.

In March 2012, 40 Somali castaways in the custody of Maldives authorities refused to return home despite arrangements that were made for their safe repatriation.

“Some of the Somali refugees are not in the Maldives. I can’t say exactly how many have been repatriated. The process has been ongoing. The Home Ministry and so many others are involved,” explained Ali.

In January 2012, an American luxury passenger line en route to the Seychelles was stranded in the Maldivian waters due to an alleged “piracy risk”, while the passengers departed to the Seychelles through airline flights.

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Cancellations and resignations after Iru Fushi Resort terminates Hilton contract

Sun Travel and Tours has abruptly terminated its agreement with hotel giant Hilton to manage the Maldives Iru Fushi Resort leading to the resignation of 30 employees at the property, staff have alleged. The termination has also led to some guests cancelling their bookings at the property with local operators.

Hilton said that its agreement to run the resort was cancelled officially on May 3 by the Sun Travel and Tours company.

“The cessation of Hilton Worldwide’s management of that resort was unforeseen and due to factors outside its control,” the hotel chain said in an official statement.

A staff member at the Noonu Atoll-based resort, who asked to remain anonymous, alleged the property’s owners had given Hilton barely 24 hours notice before terminating the agreement.

The staff member said Sun had given little information for the reason for the termination, stating that Hilton’s management team was notified on April 30 that their services would no longer be required.

According to a letter sent to staff that was seen by Minivan News, Sun took over management of the property on May 1 and began removing all Hilton branding from the resort, which will now be known as the Maldives Iru Fushi Resort and Spa.

“As I understand, management were informed by letter at about 3:00pm on April 30 that the owners would be taking over. Even Hilton did not know what was happening. There is a lot of shock, it is a very smoothly run resort,” the resort source claimed.

Despite a pledge by management at Sun Travel and Tours management to retain all staff at the site, the staff member said some employees were now concerned about their job security.

The staff member said 30 of an estimated 500 staff employed at the resort has resigned in the four days following the termination of the Hilton contract. Bookings had already been cancelled due to of the loss of the Hilton name, the source said, while other guests were already in the process of trying to amend their bookings.

Sources at several large local travel operators based in Male’ confirmed to Minivan News today that some bookings for the property had already been cancelled.

Peaceful handover

The resort staff member praised Hilton’s conduct in handing the property over in a peaceful manner, claiming that the company had in some cases offered to transfer guests to the company’s other resort in the country, Conrad Maldives Rangali Island.

“Hilton have been so patient in this matter and left the place so professionally. Although its GM had left, the management urged us not to resign right away and to think of our families,” the source claimed.

After Hilton management were informed of the cessation of the management agreement, the source alleged the company was given less than 24 hours to vacate the premises, with access to the site’s computer equipment and offices cut off by 12:00pm the following day (May 1).

“I am a Maldivian myself, but I am ashamed of these guys and the way in which they have [taken over management],” the source claimed.

No statement from Sun

Sun Travels and Tours Pvt Ltd is owned and operated by MP Ahmed Shiyam, a local businessman and media magnate, who last year founded his own political party known as the Maldives Development Alliance (MDA).

Shiyam was not responding to calls at time of press, though senior MDA official Ali Mauroof recommended Minivan News contact Abdulla Thamheed, “our general manager” at the resort.

Thamheed later requested that media inquiries on the resort be addressed to Sun Travel and Tours offices in Male’. Minivan News was still awaiting a response from the company at time of press, which had yet to release an official statement as of May 5.

Political activities: TEAM

The Tourism Employees Association of Maldives (TEAM) meanwhile claimed it had received complaints from workers at the resort before and after the termination of the Hilton management agreement concerning attempts to politicise staff.

TEAM Secretary General Mauroof Zakir alleged he had received several reports of widespread uncertainty at the resort from staff, alleging a number of guest rooms were being provided to MDA supporters and members.

“The resort’s operations are being jeopardised by a complete lack of understanding as to who are paying guests and where people are staying,” he alleged. “It sounds like a real mess there at the moment.”

Zakir said that TEAM had also received complaints by staff concerned over job security at the resort amid reports that individuals signing up to the MDA were being offered employment at the site.

“More than this, there is the direct damage to the industry of losing a major name like Hilton from the country,” he claimed. “We haven’t heard anything from the Tourism Ministry about this and will be looking to meet authorities over the matter tomorrow.”

Minister of Tourism, Arts and Culture Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding to calls from Minivan News at time of press.

The staff member meanwhile claimed that during the second day of working under the new resort management, a speedboat belonging to MP Shiyam had arrived with an entourage of people who had been campaigning for the MDA on nearby local islands.

“This party have been staying here with the owner [MP Shiyam] while they conduct political activities,” claimed the source.

As well as using the resort’s offices for MDA administrative matters such as photocopying and producing promotional material, the member of staff alleged that politicisation of the resort had been ongoing even while Hilton was in charge of site.

“Management have already hired two new guys linked to [MDA]. As I understand they were employed without undergoing any of the regular formal processes. Those who are here do not feel this is a safe place to work right now,” the source alleged.

Police called over harassment of female guests

Police Spokesperson Chief Inspector Hassan Haneef meanwhile confirmed that police had attended the resort on May 4 in response to allegations that three female Maldivians staying at the resort had been harassed.

Haneef said police arrived at the site yesterday afternoon to investigate after receiving a complaint from resort management over alleged harassment of some guests by an unidentified suspect.

He claimed that police had insufficient information to identify a suspect at the time of press.

The resort source alleged police had been called to the resort over allegations of attempted sexual assault of female guests on Friday (May 3) by an individual he claimed was part of the resort owner’s group.

“This individual entered the room belonging to these ladies and threatened them if they tried to make a noise,” the source alleged. “They managed to scare the man off and he escaped. These ladies complained and the police were called. This person was not a guest,” he said.

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Tourism worker union threatens voter boycott if workers’ rights not protected

The Tourism Employees Association of Maldives (TEAM) has announced a list demands targeted at government authorities and have threatened to boycott the upcoming presidential elections if workers rights are not protected.

TEAM and the Maldives Port Workers Union (MPWU) organized a joint concert event near the tsunami monument in Male’ to celebrate International Labour Day (May 1) – also referred to as ‘May Day’ – and show support for workers’ human rights.

During the event, which featured three Maldivian rock bands and a bodu beru (traditional drumming) group, TEAM highlighted four demands for tourism industry employees working at resorts and on safari boats:

1) receive 99 percent “equal and fair distribution of service charges with transparency”;
2) have Maldivians fill 80 percent of the industry’s jobs;
3) have the Freedom of Assembly Act amended to remove clause 24(7)b which bans certain gatherings, effectively making strikes illegal;
4) receive a minimum wage of US$600 for tourism sector employees.

“There is no reason for us to work if our human rights are not protected,” TEAM Secretary General Mauroof Zakir told Minivan News today (May 2).

“The government has not taken any responsibility, they don’t care what happens [to workers]. It’s all about power for them,” he added.

“There are 15,000 Maldivian employees in the tourism sector and they are the breadwinners for their families. As family leaders, they will listen to what we have to say, so if we call for a voter boycott that’s about 75,000 votes we can control,” claimed Zakir.

“Current legislation mandates 99 percent of service charges be distributed among employees, however many companies are not following the law,” he stated.

“The majority of workers only receive about 500 MVR (US$32) to 1000 MVR (US$65) in service charge tips. It’s totally rubbish,” he added.

Zakir explained that foreign migrant workers hold 70 percent of tourism industry jobs (the legal maximum is approximately 50 percent but is widely unenforced), while over 30 percent of young people are unemployed – approximately 40,000 people.

“The Maldives is in a deep recession. The current government policy requiring 45 percent of tourism jobs be reserved for Maldivians is totally wrong,” Zakir declared.

“Cheap labourers don’t demand their rights be upheld. They are willing to work 14 to 16 hour days. These are slavery style operations,” he said.

Zakir explained that management in the tourism industry often cultivated frustration between Maldivian workers and foreign workers as a divide and conquer strategy.

“TEAM is not only for locals, we support migrant workers’ rights as well,” he added.

Regarding TEAM’s third demand, Zakir also spoke about the strike ban preventing groups of more than one person from gathering at resorts, on safari boats, or on industrial islands.

“This is a clear violation of human rights,” he declared.

The call for the minimum wage to be increased is another fundamental issue affecting quality of life, with the average salary actually being between US$152 and US$350, according to Zakir.

“This is not enough to live given the high cost of goods, rent, and inflation,” he said.

He claimed the government’s average figure of US$400 was “totally wrong”, while TEAM had at members at all resorts with access to actual salary information.

Although some resorts pay a higher minimum wage and percentage of service charges, workers’ financial security is still at risk if occupancy drops or anything unexpected happens at the resort that would affect the service charge amount, explained Zakir.

A petition with the list of TEAM demands is being circulated to all the resorts in the Maldives and will then be submitted to the relevant government authorities – President’s Office, Speaker of Parliament, and the Tourism Ministry. The next step will be to establish a timeframe to conduct negotiations.

“We will make them listen and talk,” Zakir stated.

“The government needs to legally implement the [International Labour Organisation (ILO)] international conventions, they’ve agreed to uphold,” he added.

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