Business & Tourism – Page 7 – Minivan News

Tourist arrivals decline in January as Chinese arrivals slow down

Tourist arrivals to the Maldives in January 2015 declined by -7.8 percent compared to the same period last year, the Ministry of Tourism has revealed.

Arrivals in January stood at 97,073 visitors, down from 105,296 visitors in January 2014, according to monthly statistics from the tourism ministry.

“This was the fourth consecutive month where a negative growth was recorded in tourist arrivals to the country,” the ministry observed in a statement last week.

Consequently, the occupancy rate fell from 82.5 percent in January 2014 to 73.9 percent last month.

“However, the average duration of stay remained uniform at January 2014 level with 6.5 days, this however was an increase compared with the 6.1 days at the end of December 2014,” the ministry noted.

In contrast to the negative growth recorded last month, tourist arrivals grew by 18.5 percent in January 2014.

Tourist arrivals also registered negative growth in November (-5.1 percent) and December (-1.2 percent) last year on the back of a steep decline in arrivals from Russia and Western Europe as well as Asia and Pacific markets.

The number of Russian tourists declined by 44.7 percent in December 2014 compared to the same period the previous year.

Arrivals from China and Japan in December meanwhile dropped by 12.2 percent and 11.8 percent respectively.

Last month, industry insiders expressed concern that the Maldives could become an overpriced destination with the introduction of new taxes.

While the Tourism Goods and Services Tax (T-GST) was hiked from 8 to 12 percent in November 2014, the government announced that a US$6 per day ‘green tax’ would be imposed on tourists from November 2015 onward.

“The green tax will definitely have an impact. It is (already) becoming too expensive to go to the top resorts because of all the service charges and taxes,” Shafraz Fazley, managing director of Viluxur Holidays told travel website TTG Asia.

Chinese market

In a phenomenon that caught many industry experts by surprise, the number of Chinese tourists visiting the Maldives tripled from about 100,000 in 2010 to more than 300,000 last year.

In 2014, Chinese tourists accounted for nearly one-third of arrivals with a 30% market share, representing the single biggest source market for tourists to the Maldives.

A total of 363,626 Chinese tourists visited the Maldives in 2014, up 9.6 percent from the previous year, which saw 331,719 arrivals.

However, during 2014, the annual growth rate of Chinese tourist arrivals slowed from 20 percent at the end of June to 9 percent by the end of December.

“Arrivals to the Maldives from China started slowing down during mid-2014 and negative growths were registered since August that year,” the tourism ministry explained.

“January 2015 was recorded as the worst performed month for the Chinese market to the Maldives so far, with a strong negative growth of 33.1 percent. China being the number one market to the Maldives, the negative growth registered from the market was reflected in the total arrivals to the country.”

Meanwhile, according to the tourism ministry’s visitor survey for 2014, less than 10 percent of Chinese tourists were repeat visitors.

In contrast, the survey found that more than 25 percent of British, Italian and German tourists visited the Maldives between two to 10 times.

Europe

With the decline in arrivals from China, Europe has regained top spot as the largest regional source market for tourists, increasing its market share from 43.9 percent at the end of December to 54.1 percent in January.

A total of 52,545 visitors were recorded from European countries, representing a marginal growth rate of 0.5 percent compared to January 2014.

In 2014, the annual growth rate of tourist arrivals from Europe flatlined to 0.4 percent.

However, with Chinese arrivals representing more than a quarter of visitors, total arrivals during the year reached the government’s target of 1.2 million visitors.

In terms of individual markets in January 2015, Italy was the second largest source market with an 8.3 percent market share, followed by the UK with 7.4 percent, Germany with 7.3 percent, and Russia with 6 percent.

However, Russia was the worst performing market during January, the ministry noted, registering negative growth of 38 percent.

Registered establishments

In January, the Maldives had a total of 529 registered tourist facilities with a total bed capacity of 32,087, including 112 resorts (24,151 beds), 19 hotels (1,704 beds), 231 guesthouses (3,397 beds) and 167 safari vessels (2,835 beds), according to the tourism ministry.

However, a total of 302 establishments (27,520 beds) were operational during the month, the ministry revealed.

“Operational capacity included 106 resorts with 23,247 beds, 15 hotels with 1,468 beds, 107 guest houses with 1,569 beds and 74 safari vessels with 1,236 beds,” the ministry’s statistics showed.

“The total tourist bed nights of these operational establishments in January 2015 was 630,840 which was a drop (-7.8%) compared with that of January 2014.”

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Division of MIFCO “mistreatment of state resources”, says Auditor General

With additional reporting by Daniel Bosley and Ismail Humaam Hamid

Splitting the Maldives Industrial Fisheries Company Limited (MIFCO) into three competing companies was a “mistreatment of state resources”, says a report from the auditor general.

MIFCO was divided into three companies in 2010, with the introduction of Kooddoo Fisheries Maldives Limited and Felivaru Fisheries Maldives, before President Abdulla Yameen reversed the decision last year.

“Even after the split the main business of these three companies [MIFCO, Felivaru and Koodoo] was the buying and selling of fish which resulted in competition amongst each other,” the audit report read.

With regards to the financial impact of the move, the report’s figures suggest that the overall profits of the state-owned fisheries business was not significantly affected.

“After the split in 2010, MIFCO’s losses amounted to 4.1 million rufiyaa [US$265,888] in 2011 and 2012 and Felivaru Fisheries Maldives operated at a loss of 19.26 million rufiyaa [US$1.2 million],” the audit report read.

“However, Koodoo Fisheries had a profit of 88.8 million rufiyaa [US$5.7 million] in this period,” it continued.

Founded by the state in 1993 for the purposes of buying and selling fish, MIFCO had made a net accumulated loss of MVR317.4 before the split, while all three companies were seen to have a total profit of MVR65.4 million in 2011 and 2012.

The audit report said that numerous faults had occurred in the splitting of MIFCO, citing several mistakes made by the Ministry of Finance and Treasury.

“While not providing an alternative to conduct business [Finance Ministry demanded] MIFCO pay the entire overdraft, which amounts to 70.56 million rufiyaa. The National Planning Council had planned how to divide MIFCO’s fleets amongst the three companies, but the finance ministry did not follow,” the report stated.

The dividing of physical assets between the three companies was not carried out properly, resulting in financial losses and even the breaking down of some equipment, read the report.

Auditor General Hassan Ziyaath recommended that the transfer of physical assets between companies be done according to “accounting principles”, and that a more thorough analysis of the impact on stakeholders be made before any similar decisions in the future

Ziyath concluded by saying that the restructuring of a company’s physical assets should be accompanied by a report demonstrating the potential impact on state income.

Fish exports make up the 98 percent of the Maldives’ exports, of which MIFCO is the leading exporter.

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Half of workers in Maldives are foreigners: Economic Development Minister

Minister of Economic Development Mohamed Saeed has said that there are over 116,000 expatriates working in the Maldives, amounting 50 percent of the working population.

Speaking at an event held to celebrate the inauguration of a programme to train 2000 salespeople, Saeed said that 81,000 Maldivians are currently registered as employed at the pensions office – equal to 23 percent of the population.

The preliminary results of last year’s census officially recorded the number of foreign workers at 58,000, though the government has previously admitted the figure to be much higher, even after the removal of 8000 undocumented workers last year.

Saeed noted that while 81,000 expatriates in the Maldives worked with proper visa and documentation, approximately 35,000 were working illegally, reported Haveeru, costing the Maldivian economy MVR1.28 billion (US$83 million) annually.

The government’s drive to build the economy on ‘Maldivian work for Maldivians’ has seen a restriction on foreign photographers working in the country, while it will be illegal to hire expatriates as cashiers from April onwards.

Saeed is reported to have told those in attendance yesterday that Maldivians must be willing to work in all types of job.

“Maldivians need to make jobs a high priority. One can’t be a resort owner in one day,” he said.

“A road sweeper could become a manager of a big office tomorrow. You need courage to be successful,” said the waiter turned cabinet minister, sharing his personal story of success.

He stated that the economic growth for this year “stands at 10.4 percent”. Figures from the Maldives Monetary Authority estimate last year’s growth as 8.5 percent.

Youth employment has been a major focus of the Yameen administration, which has pledged to create 94,000 new jobs during its five year term.

Local youth-led NGO Democracy House states unemployment among the youth (aged 15-24) may be as high as 43 percent, with the group having highlighted a “disconnect” between the current school curriculum and life skills.

While the government has established a youth unemployment register with 13,000 individuals, youth minister Mohamed Maleeh Jamal has reported complaints from businesses about individuals failing to attend interviews and quitting jobs within a few weeks.

Former Maldives Airports Company Ltd head Bandhu Ibrahim Saleem – dismissed last month – told a Majlis committee in December that difficulties with local staff had resulted in a dependence on foreign employees, to keep the international airport running.

Also speaking at yesterday’s ceremony, Minister of Finance and Treasury Abdulla Jihad suggested that the government’s Special Economics Zone (SEZ) Act would also create large numbers of jobs.

“36 percent of the Maldivian population is the youth,” Haveeru reported Jihad as saying. “The SEZs is an example of how much the government prioritises the youth’s welfare”.

The controversial legislation, which promises to deregulate as-yet unspecified areas of the country in order to attract foreign investors was passed in August last year.

Despite a lack of investments having resulted as yet, governing coalition leader Ahmed ‘Sun Travel’ Shiyam claimed last weekend that the government would bring investments, the likes of which the country had not seen before.

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Civil Court orders halt to seizure of lands allocated to Gasim’s Villa company

The Civil Court has ordered the Ministry of Tourism halt all proceedings regarding the seizure of uninhabited islands and lagoons granted to Villa Hotels and Resorts Private Limited.

Villa – owned by Jumhooree Party (JP) leader MP Gasim Ibrahim – requested the stay order after the government’s decision to hand back the uninhabited islands and lagoons given to the company as compensation for the nationalisation of several development projects, including Kadhdhoo airport

According to the order, although the government has said Villa can be compensated for the seizure of the islands and lagoons, the areas were handed over due to the government’s inability to bear the burden of a financial or monetary compensation.

The islands and lagoons that had been ordered to be returned are Thaa Atoll Elaa, Raa Atoll Maanenfushi, Gaafu Dhaal Atoll Gazeera, Kaafu Atoll Maadhihgaru lagoon, and Vaavehdhi lagoon.

Speaking at a joint rally of JP and Maldivian Democratic Party (MDP), Gasim stated that “the Maldivian people will not allow injustice” and reiterated calls for the charges against MDP leader and former President Mohamed Nasheed to be dropped.

“Forget it, nobody can push us back, we will be in the service of the Maldivian people. We will defend the fundamental rights and freedoms of the constitution”, Gasim said.

The JP’s opposition to key government legislation last year saw Gasim suffer setbacks to his businesses, as well as physical threats against his person – both of which the party blamed on Gasim’s former political allies.

“You can seize everything, take it. Take it. After all, things can only be taken from people who have them,” he told attendees of the joint rally of Maldivian Democratic Party (MDP) and JP held on February 5, 2015.

“Yameen, do not think that a well-built man can come and shoot me with a gun. No, No, No. I am not afraid even one bit.”

President Abdulla Yameen has denied Gasim’s business reversals were a result of political events, stating that all businesses were treated equally under the law.

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Environmental coalition urges President to stop oil exploration

Twenty NGOs have urged President Abdulla Yameen to stop plans for oil exploration in Maldivian waters, or risk the country’s economic and environmental health.

In a joint statement of concern, marine conversation NGO OceanCare’s President Sigrid Lueber warned that the oil explorations could have “severe socio-economic consequences in the fisheries and tourism sector”.

After pledging during his election campaign to begin new efforts to find oil, President Yameen’s government has claimed investor interest in the project, while a German research vessel carried out a seismic survey last August.

Speaking to Minivan News today, founder of local environmental NGO Ecocare, Maeed Zahir, said that the public does not take seriously the concerns put forward by local NGOs.

“Several people have questioned our technical expertise on oil exploration and used it as an excuse to dismiss our concerns,” said Maeed. “However, with several international NGOs speaking out against the exploration we hope it will be taken more seriously.”

The statement of concern was also sent to several members of the cabinet, including fisheries minister Dr Mohamed Shainee, tourism minister Ahmed Adeeb, economic development minister Mohamed Saeed, and environment minister Ahmed Thoriq.

President’s Office Spokesperson Ibrahim Muaz said that only the president could comment on correspondence addressed personally to him, directing Minivan News to the relevant ministers for updates on the exploration project – none of whom were responding to calls at the time of publication.

The Maldives has also been included OceanCare’s silent oceans campaign. The NGO – which was granted Special Consultative Status with the UN’s Economic and Social Council in 2011 – is encouraging people to write to Adeeb urging an end to exploration.

Seismic impact

The NGO coalition’s statement of concern warned that exploration will have adverse effects on the Maldivian economy as a result of negative impacts on fisheries.

Seismic air guns – one of the most commonly used survey methods for offshore oil exploration – produce loud bursts of sound by introducing air into water at high pressure which then penetrates hundreds of kilometers into the earth’s crust.

OceanCare stated that the air guns produce a pulse of noise lasting 20 to 30 milliseconds, which is repeated an average of every 10 to 15 seconds, often for 24 hours a day.

“Three decades of controlled scientific studies leave no doubt that intense sound damages fish and impact fisheries,” said the Swiss NGO. “Ocean noise has a negative effect on at least 55 marine species.”

A recent study commissioned by the Namibian government revealed a sharp decline in catch as a result of increased seismic exploration in the Orange River Basin. The country’s tuna catch shrunk from 4,046 tons in 2011 to a mere 650 tons in 2013 after a shift in migratory routes.

Similarly, the Australian tuna industry has said the process may threaten the survival, abundance, or evolutionary development of native species or ecological communities.

Additionally, a recent study into the impacts of air guns on marine life ranked them as the second highest contributor of underwater noise caused by humans – only underwater nuclear detonations have been found to cause more.

The NGO statement also noted the adverse effects on marine biodiversity as a result of such surveys, pointing out that Maldivian tourism is heavily dependent on a healthy and diverse marine eco-system.

Tourism and fishing account for 90 percent of the Maldives’ GDP, while providing three-quarters of all employment and two thirds of foreign exchange earnings.

The government’s development plans include both a reduced reliance on tourism, as well as minimising the country’s dependence on imported fuel through the enhanced use of renewables. Imported fuel consumes around one third of the Maldives’ GDP.

Preliminary Research

Last year, the German research vessel ‘Sonne‘ – which came to the Maldives to conduct research into global warming – conducted preliminary research exploration free-of-charge on the government’s request.

While pointing out the importance of proper Environmental Impact Assessments in oil explorations, the coalition of environmental groups expressed concern that no such EIA or public consultation was undertaken prior to this research.

Speaking at the time, fisheries minister Dr Shainee said that explorations will be carried out in one of three areas which have properties suggesting the presence of oil and gas. The identified locations were located 100 miles east of the area between Laamu and Thaa atoll.

Shainee also said that the information obtained will be shared with the Maldives in the first quarter of 2015. He said that the data would not be shared with any third party, and that further explorations would follow to confirm any positive findings.

In February 2014, the Maldives National Oil Company Ltd – a subsidiary of the State Trading Organization – said it would soon begin advertising the country as a destination for oil exploration.

Speaking at the 18^th Saarc Summit held last year, Indian Prime Minister Narendra Modi said that India wishes to assist Maldives in its search for oil reserves, while cabinet members reported that oil exploration was on the agenda of the first China-Maldives joint commission on trade, held in December.

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Free trade feasibility talks begin with Chinese delegates

The Maldives government has started technical discussions with China regarding the feasibility of a free trade agreement between the two nations.

At a meeting held at the Ministry of Economic Development today (February 4), a technical committee consisting of experts from both countries engaged in discussions over what would be the Maldives’ first free trade agreement with a single country.

Haveeru reported economic development minister Mohamed Saeed as saying that the committee is tasked with determining the feasibility of such an agreement and identifying any potential difficulties.

“The truth is we want to set up the free trade agreement as soon as possible,” he told the paper.

He said the two main reasons in pursuing a free trade agreement with China were duty-free exports of fisheries products, and an increase in air travel between the countries which will bring more Chinese tourists to the Maldives.

Fish accounts for 98 percent of the Maldives’ exports, while Chinese tourists make up 30 percent of all visitors to the Indian Ocean nation.

Speaking with Minivan News today, former Economic Development Minister Mahmoud Razee said that free-trade is most advantageous when taken up by nations at the same level of development, with a demand for goods exported by both countries.

“Maldivian fisheries products are mainly imported by European countries, Japan, and America. The question is whether China imports enough fisheries products from the Maldives,” he said.

Razee also said noted that there was a potential risk of China ‘dumping’ low quality and undesirable goods into the Maldivian economy.

Minister at the President’s Office Mohamed Shareef has previously said that free trade talks were initiated by the Maldives, and that China has taken a flexible approach with regards to the final agreement.

Last year, President Abdulla Yameen declared a foreign policy shift to the East, slamming the European Union after regulations resulted in the non-renewal of the Maldives’ preferential trade partner status.

The government’s decision to engage in free-trade with China was revealed in December 2014 after the cabinet’s economic council visited China to hold discussions on Chinese-assisted projects in the Maldives.

“The biggest advantage of the free trade will go towards fishermen. With free trade, the 12 percent export duty will be gone, thus the 12 percent becomes profit for fishermen,” said fisheries minister Dr Mohamed Shainee at the time.

The cabinet members’ visit to Beijing in December also saw the Maldives officially sign up to the Maritime Silk Road project, which will provide a trade route between China and east coast of Africa and the Mediterranean.

China currently has free trade agreements with eight countries – including Pakistan, Costa Rica, Peru, and New Zealand – as well as a regional agreement with the Association of South-East Asian Nations.

The Maldives is currently a member of the South Asian Free Trade Area, along with its fellow SAARC nations.

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Treasury bills and bonds rise to MVR17.6 billion, MMA reveals

The Maldives Monetary Authority (MMA) has revealed that the outstanding payments for treasury bills and bonds had risen to MVR17.6 billion at the end of 2014.

According to the Monthly Economic Review of December 2014, published yesterday (February 3), stocks of government securities comprising T- bills and T-bonds increased 22 percent and 55 percent, respectively, comparing monthly and yearly terms.

“As for the outstanding amount of T-bonds, it increased significantly in both monthly and annual terms and reached MVR6.4 billion compared to MVR3.1 billion recorded in November 2014,” the review stated.

The MMA’s economic review revealed that 103,744 tourists arrived in the Maldives in December 2014, which is 1 percent lower than the arrivals of the same period in 2013, due to the “decline in arrivals from Asia and Europe”, but an increase of 16 percent compared to November 2014.

Among Asian countries, China contributed the most tourists, with 363,000 of the 1.2 million visitors in 2014 – a year-on-year rise of 9.6 percent.

It was also noted that the occupancy rate of the Maldivian tourism industry as a whole decreased by two percent, from 76 percent in December 2013 to 74 percent in December 2014 due to the decrease in total bed nights by 3 percent, and the average duration of stay to 6 days.

Comparison of figures from November and December of 2014 suggest that there was a 12 percent increase in international reserves and a 17 percent increase in state revenue, leaving international reserves at US$614.7 million by the end of last year.

Reserves held at the end of November equated to 3.3 months of imports, compared to 2.3 months recorded at the end of November 2013, said the MMA.

“The increase in total revenue during December 2014 was largely due to a 32% growth in tax revenue (mainly contributed by the increase in T-GST receipts),” stated the monthly review.

Trade balance worsened by 42 percent in December 2014 compared to corresponding the same period in 2013, as imports rose by 34 percent while exports only increased by 11 percent.

“The growth in imports was mainly due to the increase in imports of transport equipment, while the growth in exports can be attributed to the rise in re-exports”.

According to a statement from Maldives Customs Services on January 14, imported goods in 2014 amounted to MVR30.7 billion – a 22 percent increase compared to 2013.

Customs figures also showed that the decline in exports saw the total value of goods leaving the Maldives in 2014 valued at MVR2.24 billion, compared with MVR2.56 billion in 2013.

(PICTURE: MMA MONTHLY ECONOMIC REVIEW – JANUARY 2015)

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Fuvahmulah Airport handed to government after costing STO MVR170 million

The State Trading Organisation (STO) has been losing MVR12 million (US$ 780,000) per year since Fuvahmulah Airport opened in 2011, Managing Director Ahmed Azim told Haveeru.

“I requested the government to take over the airport because it has been causing that much damage to the company,” said Azim, noting that the state-owned company had lost in excess of MVR170 million (US$11 million) since the airport opened.

Speaking at the 50^th anniversary of the STO last week, President Abdulla Yameen said that he does not believe the STO will ever earn profit from the airport.

“Even though STO had to suffer numerous losses and had to bleed because of it, it has constructed an airport at Fuvahmulah,” said President Yameen – who had previously served as Chairman of STO. “We have decided to take over the airport and re-compensate the company for its losses.”

Upon assuming the presidency in November 2013, Yameen declared the STO bankrupt before Azim announced a campaign to cut operational costs by MVR50 million (US$3,242,542) in 2014.

Last week Yameen warned that “managing directors of state owned companies will change if the companies cannot perform” to the required standard, shortly after the dismissal of Maldives Airports Company Ltd chairman Ibrahim ‘Bandhu’ Saleem.

Despite being constructed as part of the STO’s social responsibility, the airport was not economically viable, said Yameen, warning that the boardrooms of state owned companies should consider such investments more carefully in the future.

Yameen did, however, call upon the STO to widen its scope into international global markets. He spoke of diversifying the company into numerous fields such as shipping and oil tanker operation, while promising government support for such ventures.

Fuvahmulah Airport – which has a runway of 1200 km runway – was constructed and opened in 2011 by the STO during former President Mohamed Nasheed’s administration. It operates flights to Malé and Gan International Airport, to the south.

Nasheed tweeted today that the airport would yield profits if the originally envisioned tourism activity were to be developed. The single island atoll has no resorts, and only a single guest house registered with the tourism ministry.

During his presidential election campaign in 2013, Nasheed had pledged to transform the island via 70 separate development projects, as well as awarding it city status.

With 8,579 people, according to the 2014 census, Fuvahmulah has the fourth largest population of any island in the Maldives.

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China dismisses Nasheed’s claim of military base in Laamu Atoll

China has denied former President Mohamed Nasheed’s suggestions that the Maldivian government is planning to hand over large parts of Laamu Atoll to China for a military base.

A Chinese embassy press statement released yesterday described Nasheed’s allegations as “completely false”.

“It is a common knowledge that China pursues a national defense policy that is defensive in nature”, read the press release. “China does not maintain any military in any foreign country”.

“China always upholds the five principles of peaceful coexistence in its foreign relations, and believes in peace, development, and win-win cooperation. This is also the foundation for China-Maldives relations which are not only mutually beneficial but also transparent to the outside world,” it continued.

While speaking to the press after returning from a trip to Abu Dhabi last week (January 22), Nasheed had alleged that the Maldives was to hand over large parts of the southern atoll to China for a military base on a 99-year lease, in exchange for US$2 billion.

While speaking at the inaugural ceremony of the Laamu Atoll link road – to be built and financed by the Chinese government – last month, President Abdulla Yameen revealed that the government had identified the area as a potential special economic zone (SEZ).

Following the Chinese response, Nasheed today (January 25) tweeted: “it is encouraging to see the Chinese Government reconsidering their strategic plans in the Indian Ocean”.

Regional presence

China’s rising economic presence in the Indian Ocean region has stoked concerns in New Delhi that China is creating a ‘string of pearls’ to encircle India, including Chinese investments in ports and other key projects in Sri Lanka and Pakistan.

Last month, the Maldives officially agreed to participate in China’s Silk Road trade route, becoming the third country to do so, while also revealing that the two countries have agreed to engage upon free trade in the future.

Chinese state media has connected the Maritime Silk Road Project, which which will link China to the east coast of Africa and the Mediterranean, to the proposed ‘iHavan’ transshipment port – one of five mega-projects designed to take advantage of the US$18 trillion worth of goods transported across the seven degree channel annually.

The British armed forces maintained a base in Addu Atoll between the Second World War until 1976, while a leaked Status of Forces Agreement with the US in 2013 prompted speculation about a new military base, though this was subsequently denied by US officials.

President Abdulla Yameen was reported to have said, during a visit to Sri Lanka last year, that he had decided against pursuing the SOFA deal for fear of upsetting regional neighbours.

President Xi monitoring progress

The Chinese press release noted today that China had been a close neighbour of the Maldives for centuries, and that bilateral relations had “expanded greatly in recent years”.

“We hope that Maldivian politicians can conduct more dialogues that are conducive to China-Maldives friendly relations, and engage in more actions that could promote the mutually beneficial cooperation between our two countries.”

The Chinese Ministry of Foreign Affairs is also reported today as saying that President Xi Jinpeng was closely monitoring the progress of the Hulhulé bridge project and development of Ibrahim Nasir International Airport (INIA) – both of which China has expressed an interest in.

An agreement for a feasibility study into the bridge linking the airport island of Hulhulé with the capital Malé was signed with China late last year, while financial arrangements for the development of INIA are said to be under discussion with China’s Exim Bank.

A preliminary contract agreement for the airport’s development was signed during President Xi’s visit to the Maldives in September – the first by a Chinese head of state to the Indian Ocean nation. President Xi expressed hope at the time that the bridge might be named the Maldives-China friendship bridge.

President Yameen has made clear his intention to further pursue already rapidly expanding ties with China, announcing a policy shift to the east while criticising the interference of western powers.

China also accounts for one third of all tourists visiting the Maldives.

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