Category: Business & Tourism

Maldives business news

GMR and government to seek “win-win situation”: Razee

Infrastructure company GMR has said it will deduct revenue received from collecting a US$25 (Rf385.5) Airport Development Charge (ADC) from every passenger departing on an international flight from the concession fee to be paid to the government.

GMR informed Maldives Airports Company Limited (MACL) last Thursday of its decision. MACL officials had not responded to inquiries at time of press.

GMR planned to begin collecting the ADC at midnight on January 1 this year as per its contract with the Maldives government. Revenue was expected to amount to US$25 million (Rf385.5 million) in 2012, and would be put towards the ongoing development of Ibrahim Nasir International Airport (INIA).

However, a Civil Court ruling in December blocked the ADC on the grounds that it was identical to an existing Airport Services Charge (ASC) of US$18 (Rf277.56). The company’s shares on the Mumbai stock exchange subsequently fell 7.57 percent, India’s Economic Times reported.

The government subsequently appealed the case to the High Court. Meanwhile, GMR is not collecting the ADC.

Economic Development Minister Mahmoud Razee said that the concession agreement between GMR and the government assured each party a certain level of income.

“Because the ADC was included as revenue, until the matter is resolved any money that was going to be received from the ADC should be deducted from what GMR owes the government,” Razee explained.

Razee said that the Ministry of Finance will work with GMR and the government to resolve the matter, adding however that much of the decision rests on a verdict from the High Court.

He added that the related Amendment of Collection of Airport Tax (international travelers) Act 7/78 Bill is also before the Parliament, which is currently in recess until March.

Razee was optimistic about the outcome, however far in the future.

“The contract between the government and GMR allows for certain changes which are mutually respected and agreed upon by both parties,” Razee observed. “They will reach a win-win situation, even if some revenue is lost.”

GMR previously noted that the payment of a development fee was “a common concept in many airports globally”, particularly as a part of concession agreements where airports are privatised.

“The reason for the inclusion of ADC in many global concession agreements is to address the funding needs to meet the investment model required to upgrade and develop new airport facilities at significant costs,” GMR stated.

The company further claimed that the charge was included in the concession fee proposed between GMR and the government in 2010.

Meanwhile, in April India’s Supreme Court ruled against the charging of airport development fees which are not approved by India’s Airport Economic Regulatory Authority (AERA). However Delhi airport, developed by GMR, continued to charge the fee as GMR had obtained permission to collect the sum in 2010.

Speaking at the groundbreaking ceremony for INIA’s new terminal on December 19, President Nasheed said he wished to assure GMR that the government was “200 percent behind your contract, and every single other contract the government has signed with any other foreign party in this country. Not just contracts signed by our government, but also contracts that any ruler of the Maldives has signed with any party. We will honour it.”

The public response has not been so positive. Following GMR’s closure of duty-free shop Alpha MVKB, company CEO Ibrahim Shafeeq organised a protest under the slogan “Go GMR Go!” The protest was held on the grounds that the company was “demonstrating our opinions and dislike of what GMR has done to us and to get public responses,” Shafeeq told Minivan News at the time.

Kulhudhuffushi-South Independent MP Mohamed Nasheed also proposed an amendment to the Business Registration Bill in a bid to reserve airport shops and services for local ownership and “clip GMR’s wings”.

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MATI sues as government seeks Supreme Court legal counsel on spas, pork and alcohol

The government has asked the Supreme Court for a “consultative opinion” on the legality of spa operations and sale of pork and alcohol in resorts, claiming that legal clarity is needed to properly address the current controversy involving Islam and the tourism industry.

The government last week ordered resorts to shut down their spa operations, and announced it was considering a ban on pork and alcohol. The announcements were made in response to five demands made during a demonstration organised by a coalition of NGOs and opposition parties on December 23 to ‘Defend Islam.’

Maldives Association of Tourism Industry (MATI) meanwhile filed a case at the Civil Court yesterday challenging the Tourism Ministry’s order to shut down massage parlors and health spas in resorts.

Speaking to local media, Attorney General Abdulla Muiz said, “We believe that the people have expressed genuine concerns over the circular issued by the Tourism Ministry ordering resorts to close down their spas.

“Investors will have confidence when they are clear of the judiciary’s position on these issues.”

The Attorney General was unavailable for comment at time of press.

Although the import of alcohol and pork to the Maldives is allowed under a regulation, there is no regulation or set of guidelines specific to spa operations in resorts.

The State, however, claims that Article 15(a2) of the Goods and Services Tax Act clearly stipulates that spas are legally accepted in the Maldives as tourism goods.

Under the article, “goods and services supplied by diving schools, shops, spas, water sports facilities and any other such facilities being operated….at tourist resorts, tourist hotels, tourist guest houses, picnic islands, tourist vessels and yacht marinas authorised by the Tourism Ministry” are tourism goods.

Officials at the Supreme Court and President’s Office were unavailable for comment today.

MATI Secretary General Sim Ibrahim Mohamed was unable to comment on the case in the Civil Court, but said that the government’s decision had incurred “irrevocable damage” to the tourism industry and had become a “legal issue to which we are trying to find legal clarity.”

“We are trying in the lower courts while the government has filed at the Supreme Court to see what this is about. We need to know whether the Maldives can legally provide tourism services within the confines of the constitution,” he explained. “A lot is riding on the court verdicts.”

Sim conceded that the verdicts would not close the discussion. “As to whether the public or the opposition parties will accept the verdict is not for us to say. They will have to weigh their own agendas against what is good for the economy at the moment,” he said.

Former Attorney General and lawyer representing MATI, Aishath Azima Shukoor, said the case addressed two key points: that the government’s decision to close the spas violates the contracts it holds with resort operators, and that the timing is unconstitutional.

Shukoor pointed out that the contracts between the government and resort operators include a clause entitling the operators to the peaceful operation of land leased. She maintained that the government had violated the agreement by closing operations without presenting any substantial reports, investigation or evidence justifying the action.

MATI has also applied for an injunction. If granted, resort spas would be allowed to operate until the court case is concluded.

Shukoor said MATI was hoping for a hearing on Wednesday, January 4, but that nothing has been confirmed.

Complaints that the tourism industry compromises the Maldives’ status as a 100 percent Muslim nation have brewed for some time, but the protests in “defense of Islam” in December 2011 threw officials into the crucible of religion, politics and tourism currently before higher and lower courts.

Article 10 of the Maldivian constitution states that “Islam shall be one of the basis of all the laws of the Maldives” and prohibits the enactment of any laws “contrary to any tenet of Islam”.

Although members of the coalition defending Islam originally called for the closure of “the spas and massage parlors and such places where prostitution is conducted”, as well as a reversal of a policy which permits the sale of alcohol on areas declared “uninhabited islands” – such as in Addu City and Fuvahmulah were the government plans to build city hotels – the government’s all-or-nothing response has driven those members to alter their position.

After telling a gathering of thousands that “The only road we must follow is based on Allah’s callings,” Jumhoree Party Leader and tourism tycoon Gasim Ibrahim sued the government when it closed spa operations in five of his Villa Hotels resorts over allegations of prostitution.

Upon realising that the protests had prompted the UK to issue a travel advisory, and after refusing to answer an inquiry about rumors that Taliban members had entered the country to participate in the protest, religious Adhaalath Party said it “calls on the international community to visit Maldives without any fear, assures that there is no terrorism in the Maldives, and that it will never give space to terrorism in this country.”

The statement further assures the international community that Maldivians are capable of protecting tourists.

Speaking to Minivan News today, Adhaalath Party chief spokesperson Sheik Mohamed Shaheem Ali Saeed did not wish to comment on an ongoing court case but called on the government to take national decisions slowly.

“Maldivian people have no problem with the tourism industry. The Maldives is the best country in the Islamic world with dealing with non-Muslims. Doctors, teachers, all are living here in Maldives and we have nothing against them. The thing is social problems are increasing daily, and people are concerned,” he said.

Minivan News asked whether it was worth risking the tourism industry in the name of Islam.

“Everyone knows the tourism industry is the backbone of our national economy. That’s why no one wants to damage any side of the tourism industry in the Maldives. I am 100 percent sure there is no prostitution in the tourism industry here. It is very professional, it is the most famous tourism industry in the world and is accepted by the international community. Why would we want to attack ourselves?”

Shaheem recommended that the industry foster alcohol-free resorts to develop the nation’s economy and add variety to the tourism sector. “In 2011 there was a project with a company from Dubai trying to do an alcohol-free resort. And I know there are resorts not selling pork,” he observed.

Minivan News asked whether it was acceptable for the government to support resorts which do sell alcohol and pork.

“This is a religious issue, and it is in the Supreme Court, so I can’t talk about this issue,” Shaheem said, adding that he could not say whether the court verdicts would settle the matter.

The Tourism Ministry announced earlier this week that it was considering revising the ban on spa operations in resorts.

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DQP requests action against President, Tourism Minister as Maldives image shifts from glam to grit

Minority opposition Dhivehi Qaumee Party (DQP) has requested Maldives Police Service to take immediate action against President Mohamed Nasheed and Minister of Tourism Mariyam Zulfa for ordering all resorts to close down health spas.

In a letter, DQP alleged that the government officials were conspiring to damage the Maldives’ image as a popular holiday destination.

The party’s statement added that the government’s “irresponsible” action is making headlines in the international media.

Police confirmed that they had received the letter, and would deliberate the matter.

DQP officials had not responded to inquiries at time of press. DQP Leader Hassan Saeed told local media this week that the government’s actions were causing “irreparable damage” to the tourism industry, from which “it would not be easy to come out of even after 25 years.”

An official at the President’s Office however argued that the opposition should bear responsibility for the fallout from December’s mass protest to ‘Defend Islam.’

“The opposition has been whipping up, and in some cases financing, extremism for months and spreading lies saying the government wants to introduce other religions. They can’t now complain about the economic damage they are ultimately responsible for.”

While resort reviews and booking services still make the first page of a Google search on the Maldives, headlines noting spa and resort closures amidst religious extremism and political turbulence have lately joined the mix.

Today’s Google searches for “Maldives”,”Maldives spa” and “Maldives resort” pulled a news feed exclusively addressing the political-religious whirlwind of the last week in which the government announced it was closing resort spas and considering a ban of pork and alcohol in response to popular demands favoring Islamic policies.

Over 229 articles are listed from leading outlets including UK’s The Guardian, India’s The Hindu, global Agence France Presse (AFP), and the BBC.

In keeping with the Maldives’ fame as a tourist destination, the headlines are eye-catching.

Global feed Associated Press (AP) ran the headline “Maldives closes hundreds of luxury resort spas,” while Sydney Morning Herald vigorously announced that “Sex claims force luxury resorts to close spas”.

Zimbabwe Metro simply stated “Maldives bans all spas after religious protests”, and Argophilia Travel News sardonically wrote, “Maldives spa ban: ulterior motives perhaps?”

Clicking beyond the headline, readers worldwide find content ranging from skeptical to sensationalist.

In their reports, America’s CNN today reported that “honeymooners and international hotel owners” were caught in “an acrimonious showdown over religious between the government and opposition parties”, while Mail & Guardian Online pointed out that the Maldives “reputation as a paradise holiday destination has come under pressure from a minority of religious fundamentalists who are growing in influence.”

Rather than ignoring the demands of the ‘Defend Islam’ demonstration on December 23, CNN observed that “the government raised the stakes” by issuing an order to close all massage parlors and spas.

Tourism accounts for approximately 70 percent of the national Gross Domestic Product (GDP) indirectly; a significant portion of resort profits are earned from spa services.

Although the stories do not always present an accurate picture of the situation, they are ubiquitous.

Maldives Association of Tourism Industry (MATI) Secretary General Sim Ibrahim Mohamed said the industry “has serious problems with people not understanding what is going on.”

Sim said that the situation was generally “murky, with one thing leading to another and another”, and added that “most of our communication is in Dhivehi–press conferences, press releases, notifications, debates. It’s very difficult for the international community to report accurately because they don’t understand our language.”

Stepping back from the details, Sim explained that tourists trying to book a relaxing holiday are not soothed by a media storm at the destination, particularly when it involves certain hot-button words.

“Fundamentalism, radicalism, extremism–since 9/11 these have been very sensitive words. And they don’t go very well with tourism.” Sim added that the industry has suffered “many booking cancellations” in the past several weeks.

The media flurry is also being addressed by those inside resorts. The blog Maldives Resort Workers, which allows resort employees to express their opinions on a carefully-manicured industry, noted in the post “The media circus continues” that Maldives’ formerly polished profile is gradually becoming dark and contorted as the issue drags on.

“What is not so funny in these political manuevering is: the negative publicity this generated across the media despite the high value tourism we have. The administration clearly needs to dismiss their spin doctors who didn’t warn them about this media storm,” wrote one commentator.

Religious Adhaalath Party, one of the parties which had organised the mass protest against the alleged anti-Islamic agenda of the current administration, has also expressed concern that the media coverage is “damaging” the Maldivian people.

“I don’t want international media to treat Maldives poorly, I want them to do their job carefully and justly. You can’t see any country like Maldives in Islamic world, so why would we want to damage these people? These are Muslim people and they like moderate views,” said chief spokesperson Sheik Mohamed Shaheem Ali Saeed.

Shaheem yesterday told CNN, “We respect tourists…we are very happy with the tourism industry in the Maldives.”

Adhaalath Party previously released a statement inviting tourists to visit the Maldives and promising protection, after the UK released a travel advisory.

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Wataniya and Dhiraagu “collude” against public interest: DRP Deputy Leader Ahmed Mohamed

Opposition Dhivehi Rayyithunge Party (DRP) Deputy Leader Ahmed Mohamed has claimed that changes made by telecommunication companies Dhiraagu and Wataniya are diluting market competition and damaging the public interest.

Both companies have upgraded their fair usage policies and increased the possible number of free texts per credit top-up from 20 to 50, effective January 1. They have also requested a tariff change due a hike in package prices.

“In the past, Dhiraagu had a monopoly. When Wataniya came in there was health competition in the country and phone charges decreased dramatically. But these recent actions, the fair usage policies and the change in tariffs, can be seen as colluding,” said Mohamed.

“I don’t know if there is a law against anti-competitive behavior in the market,” Mohamed explained, “but these colluding behaviors by the telecomm companies are not healthy for the general public.”

Mohamed said the government should act on any law which prohibits companies from colluding to reduce competition and drive up prices, or should create one to address such a situation.

Wataniya and Dhiraggu are the only two telecommunications companies in Maldives, and both introduced BlackBerry services to the Maldives this year.

CAM Deputy Director General Abdullah Pasha confirmed that CAM had approved tariffs for price changes, but said the authority did not regulate changes to free minutes “because it is used to manage excess capacity on their networks, and so it’s up to them.”

Pasha did not believe that the changes would hurt competition or impact the general public.

“Prices are going up in every sector right now, so this isn’t unusual,” he observed.

Officials at both telecommunications companies were unaware of Mohamed’s statement, and did not believe that there was cause for concern.

“Competition is one of the fundamental things of a strong, successful business. We definitely don’t engage in anything that would compromise market competition,” said Dhiraagu Marketing and PR executive Imjad Jaleel.

Jaleel said Dhiraagu has made several changes which bear similarities to upgrades made by Wataniya, but claimed that the coincidence was an effect of catering to the same population.

“After all we are talking about the Maldives market,” he said. Jaleel added that changes at Dhiraagu are always monitored by an outside party. “Dhiraagu must go through the Communications Authority of Maldives (CAM) to make any changes, and we follow CAM’s advise and cooperate with its regulations. There is nothing we would do to damage competition, or have a negative impact on the general public.”

Wataniya’s Head of Marketing and Communications Aishath Zamra Zahir said the company was also “following the usual procedure with CAM, and [has] fulfilled all the licensing requirements.”

Zahir added that Wataniya’s changes have not tamed the market, but rather have maintained the company’s  competitive edge.

“We still offer the lowest IDD (international direct dialing) in the country,” she pointed out.

According to Wataniya‘s new fair usage policy, customers can receive up to 1000 free minutes when making calls from a free phone number.

Dhiraagu customers with post paid plans can now receive between 1000 and 5000 free minutes per month for calls with free numbers, according to their plan.

Jaleel pointed out that these revisions are not unique to the Maldives, but rather reflect “a trend that is happening everywhere in the world.”

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Tourism Ministry may revise spa ban

The government is looking to revise the circular issued late last week requesting that resorts, hotels and guesthouses close down their spas over public allegations that they double as brothels.

“As specifying a certain distance from Male’ would not be a wise decision [in closing down spas] and that other resorts, which also cater for locals, are located close to inhabited islands, the government has decided to close down the spas in all the resorts on a fair basis and by giving a higher priority to the allegations made,” the circular read.

The decision to reconsider the circular was made after several resort owners and the Maldives Association of Tourism Industry (MATI) expressed “serious concern”.

A statement signed by MATI Secretary General ‘Sim’ Ibrahim Mohamed released last week expressed concern with financial losses as a result of the decision as well as effects on holiday-makers currently in the Maldives.

MATI urged the government and opposition parties to “find a peaceful solution” to the dispute.

“The tourism industry wishes for all actors in the political sphere to prioritise the domestic economy, development and security over differences and disagreements among political parties and not involve the economy’s main industries in these disputes,” reads MATI’s appeal.

MATI’s Chairperson M U Manik and Vice Chair ‘Champa’ Hassan Afeef have made statements in the media urging the government to reverse its decision to shut down resort spas after considering the consequences for the economy.

Meanwhile the government has also announced that it is considering banning pork and alcohol across the country, in response to the large number of Maldivians who protested against the government’s current purported “anti-Islamic” policies.

Tourism Minister Dr Mariyam Zulfa told Haveeru yesterday that the circular was issued in response to demands made by the coalition of religious NGOs and opposition parties during the protest to defend Islam on December 23. These demands included the closure of places which support prostitution, namely spas and massage parlors.

Zulfa noted that a policy shift towards strict Islam would have a profound economic impact on the Maldives.

“We can only sustain our economy by following the moderate form [of Islam] which has been in the Maldives until now,” she told Haveeru. “We [ministers] are labelled anti-Islamic because we support the tolerant form [of Islam]. But that label is a disgrace to our parents as well.”

According to Zulfa, several resorts had raised concern over the circular, and while they “are aware of the reasons that led us to take the decision,” the ministry is investigating a compromise.

The Minister was unavailable for comment at time of press.

Minivan News understands that several tour operators have also been calling resorts to inquire if indeed their spas and massage services have been closed down. Hulhule Island Hotel, near Male’, has closed its spa indefinitely.

Maldives Association of Travel and Tour Operators (MATATO) earlier issued a statement condemning the government’s decision to close five Villa Hotels’ resort spas over allegations of prostitution. MATATO noted that local and foreign resorts, tour operators and travel associations had expressed concern over the decision and that the damage to the industry would be grievous.

“The spa and wellness concept is very popular among tourists,” read the statement. “We urge the government to keep politics away from Tourism and also advise various
Tourism stakeholders as well to do same, as majority of Maldivians depends on Tourism for their livelihood and is something to be dealt with extreme caution and care.”

Today, MATATO did not respond to phone calls.

Speaking at a press conference held the day before the circular was issued, President’s Office Press Secretary Mohamed Zuhair justified the strong measure by saying that given the difficulty of distinguishing spas which endorse prostitution from those which do not, and that many high-profile Maldivians visit resort spas, it was important that strict measures be taken to protect those Maldivians’ good names.

Meanwhile, members of the coalition which made the demands have accused the government of “making a mockery of the demands” and “making excuses.”

Alleging that the government is targeting protesters, coalition spokesperson Abdullah Mohamed announced a sixth demand–that the government “stop causing harm to anyone who participates in the religious movement”.

The coalition has given the government until January 5 to fulfill the demands made on December 23, and has warned of further mass protests or direct action in the event that the deadline is not met.

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Tourism Ministry issues circular to close spas and massage parlors

After thousands of protesters gathered last Friday and demanded the government “close the spas and massage parlors and such places where prostitution is conducted”, the Tourism Ministry has today published a circular asking all the resorts to shut down their spas and massage parlors.

Press Secretary for the President Mohamed Zuhair today confirmed to Minivan News that the Tourism Ministry had issued the circular.

The circular informs that the government has decided to shut down all the spas and massage parlors in accordance with demands made by the general public during last Friday’s protest to “defend Islam.”

Speaking at a press conference held yesterday, Zuhair said the protesters did not specify where exactly the prostitution was conducted but mentioned that prostitution was conducted inside spas and massage parlors.

He said the government does not know how to differentiate between the spas and massage parlors that are complicit with prostitution and those which are not.

Therefore, Zuhair said the government has decided to shut down all such locales because Maldivians, including high-profile individuals, have been visiting tourist resorts and having spa treatments.

He said the government does not want those high-profile individuals’ good names being damaged by visiting places accused of such crimes.

Zuhair added that some of the individuals making these demands last Friday also conduct business in the tourism industry. Therefore, the government believes that, given their insider understanding of the resort and spa industry, their accusations are well-founded and there is not much to investigate.

This week, five spas run in five resorts owned by opposition Jumhoory Party (JP) Leader ‘Burma’ Gasim Ibrahim were asked by the Tourism Ministry to shut down operations over similar allegations.

The company subsequently sued the government. Meanwhile, the Civil Court issued a warrant permitting those spas to continue operations until the suit has reached a verdict.

Tourism Minister Dr Maryam Zulfa was unavailable for a comment.

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Local market patched with personal alliances

Compared to markets in many developing countries, Male’s fruit and vegetable market appears tranquil. Visitors aren’t hassled, and the pathways are fairly clean. Nearly each stall presents banana bunches, coconuts young and mature, and bundles of various leaves alongside giant papayas and modest mangoes. A few sport coconut oils and juices for skin, hair and cooking, as well as containers of Maldivian spice mix and a salty fish sauce.

While the market is the shopkeeper’s source for local goods, the rules of competition are personal. “Business depends on your friends–both shopkeepers and customers,” said one vendor. Pointing out the homogeneity of goods available, he explained, “We compete by making sure we have what the other guy has. We don’t lower the price.”

While business is alright, the annual holiday season (October – December) brings a dismal combination–low supply and low demand. In spite of their personal connections, most vendors note that business hovers between “alright” and “bad.”

During the holidays many locals leave the country, and island-based suppliers make fewer trips to Male’. One man said the price of a coconut, one of the Maldives’ most common products, has dropped from Rf5 (US$0.30) to Rf2 (US$0.13). Bananas sell for Rf1 (US$0.06) apiece, versus the shop rate of Rf3 (US$0.9). He adds that most tourists who stop in don’t buy.

Seasonal market trends are a nuisance for vendors, but their complaints mostly lie with the changes imposed on the market system by the Male’ City Council, then Male’ Municipality.

Renovations earlier this year transformed the former sprawl to a plot of concrete squares delineating 176 stalls, available by lottery for three-month periods only at Rf750 (US$49) per month.

Many vendors said they were uninformed of the changes and simply asked to evacuate. Protests against the order were unproductive, and vendors claim the new arrangement has hurt their business as well as their pride.

“People who had worked here for years weren’t given an advantage in the lottery,” said Ahmed Zakariya. “It’s only by chance that they can sell goods, and for three months only.”

Zakariya said the situation had led some vendors to lease out their stalls at a profit.

“Some guys have families, and their whole life is based on this business,” he explained. “They try to lease a stall from someone else so they can sell for longer, but they’re not too happy with the set up.”

Vendors have also turned to their own resources to fix physical flaws.

Although the Municipality provided white tarp covers for the stalls, the sandy pathways were unprotected and rain often splashed into the stall areas, coating products in wet silt. One vendor explained that the blue and patched sheets now draping over the walkways were raised by the men themselves, in the interest of protecting business.

Noting the prevalence of unstable and crumble-prone styrofoam surfaces, Minivan News asked a vendor why the stalls were built out of such impermanent material.

“People don’t invest in improving their stalls because they only have them for three months,” said one man. “Even if you win the next lottery, you may move across the market. So we use re-usable materials that are easy to move.”

Gesturing to his approximately four foot by seven-foot stall, Zakariya added that the restricted stall spaces hurt business prospects.

“Sometimes we can’t keep enough produce in the given space, so we can’t sell as much.”

He said some vendors partner with their neighbors to expand storage and sales, paying a fee or entering into partnership as friends.

Mohamed Manik of Gaaf Alif Atoll believes he is one of the few vendors currently selling solo. He said he makes a monthly minimum of Rf10,000 (US$649), but believes the joint operations make a much higher profit. “They are my big competitors, the ones who have partnered,” he noted, looking around. “But I usually can’t compete, so I just try to make a satisfactory living.”

In spite of the delicate competition for social-professional connections, Manik said people are friendly. But he pointed out that they share a common antagonist: night burglars.

“Theft is a big problem,” said one older man.

Without a security guard or market gate, he said, the market is hard to defend. Pranksters most often steal banana bunches, however he said some coins he had had the day before had disappeared overnight.

“Sometimes the guys who stay here overnight catch the thieves and beat them, and hand them over to the police. But they are soon released, and come back the next day to hassle us,” he said.

“Security needs to be better, the city council should take responsibility. It’s very, very, very very sad,” he concluded.

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Gasim’s Royal Island Resort sues government

Villa Hotels’ Royal Island Resort and Spa, owned by Jumhoory Party (JP) Leader and MP ‘Burma’ Gasim Ibrahim has sued the government and requested the Civil Court to cancel an order by the Tourism Ministry to close the resort’s Spa over allegations of prostitution operations.

Today the Civil Court issued a warrant to cancel the Tourism Ministry’s order and permit spa operations until the suit against the government is concluded.

Speaking for the government at this morning’s hearing, Attorney General Office’s lawyer Maryam Shunana told the Judge that issuing the warrant was equivalent to closing the entire suit, Haveeru reports.

Former Attorney General Azima Shukoor spoke on behalf of the resort.

Shukoor argued that according to the agreement made between the resort and the government, the resort has 30 days to correct any issue found by the government. If the resort fails to correct the issue within that time frame, the government may fine the resort US$10,000 (Rf154,200), reports Haveeru.

Shukoor claimed that the government’s order was given prior to any investigation and was based on allegations alone. She requested that the ministry’s order be cancelled.

She further requested for the warrant to keep the Spa open until the suit reaches a verdict, adding that if the warrant was not issued the resort risked a great loss.

Deputy Solicitor General Ahmed Usham asked whether the Spa was still open–Shukoor replied that it was functioning. Usham responded that losses to the resort should not be raised in court if the Spa was not closed according to the Ministry’s order.

Yesterday, Press Secretary for the President Mohamed Zuhair said that the government has decided to shut down all the massage parlors in the Maldives and is considering banning the trade of alcohol and pork throughout the Maldives in response to demands made by protestors on December 23.

Progressive Party of Maldives (PPM) Spokesperson and MP Ahmed Mahlouf called on the coalition of religious NGOs and opposition parties to take actions against the government’s decision to disrupt Gasim’s business operations.

He warned that the government will continue to disrupt other businesses run by opposition supporters.

Gasim has filed cases regarding the other four Villa resorts which were requested to close their spa operations. However, no hearings have yet been conducted.

Press Secretary Zuhair yesterday informed Minivan News that Gasim was pretending to be a victim only for political gain, and that the government’s decision was not intended to harm any individual.

He also said that spas Gasim’s resort were not the only ones asked to close operations, but that some spas and massage parlors in Male’ have also been asked to shut down business on similar charges.

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National Security Committee to forward resolution prohibiting Israeli flight operations

The parliament’s National Security Committee (NSC) has today decided to forward a resolution to the parliament to prohibit operations of Israel’s El Al airline to the Maldives.

Maldivian Democratic Party (MDP) MP for the Madaveli constituency Mohamed Nazim, also a member of the NSC, today confirmed the decision to Minivan News.

According to Nazim the resolution will be forwarded to parliament Speaker Abdulla Shahid today.

”The speaker will then decided when to present it to the parliament’s floor to ask for a vote,” Nazim said. ”The decision was made following a request made by the Islamic Minister Dr Abdul Majeed Abdul Bari to pass a resolution to prohibit the flight operations to the Maldives.”

In May Israel’s national carrier El Al formally applied to the Ministry of Transport to begin flying to the Maldives from December.

President Mohamed Nasheed’s Press Secretary, Mohamed Zuhair, said at the time that he believed the government was inclined to grant permission to the airline.

Later in April religious party Adhaalath resolved to terminate the coalition agreement with MDP in the event that permission was granted.

Transport Minister Adil Saleem previously said the ministry was processing a license for El Al subsidiary airline Sun d’Or International Airlines, and claimed the partnership would create opportunities for Israeli tourists to visit the country while also facilitating pilgrimages for Maldivians to mosques around Jerusalem and other parts of the country.

In September the Adhaalath Party’s council voted to break the coalition agreement to protest the current government’s religious policy, citing the Israeli flight issue as a component therein.

This week Minister of Islamic Affairs Dr. Abdul Majeed Abdul Bari requested the NSC to endorse a resolution forbidding the government to establish ties with Israel.

Expressing his views on the issue, Dr. Bari told the MPs he “personally does not support the Israel airline to operate in the Maldives”.

Speaking to Minivan News, Dr. Bari said that he made the request because he believes “Israel has committed several human rights violations”.

Dr. Bari noted that Maldives should not stand with Israel as it commits atrocities against the Muslim brothers and sisters in Palestine.

“Maldives cut off ties with Libyan President Muammar Gadaffi’s government when he was killing, violating fundamental rights of his people. Similarly, Maldives should follow the same standard by isolating Israel for the atrocities committed against Muslims,” Dr.Bari said.

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