Month: January 2014

Tourism ministry marks new year with celebration of one million tourist arrivals

A new year countdown event titled “One Million and Beyond” organised by the Ministry of Tourism was held last night at Malé’s Alimas Carnival area. The celebrations, with fireworks and musical performances, was to mark the arrival of 1.2 million tourists in the year 2013.

The one million mark was reached in November with the arrival of 94,562 tourists in that month alone, a nearly fifteen percent increase from 2012.

Among the tourists who visited Maldives in that month were 45,894 from European countries and 26,008 from China – a leap from just 18,450 Chinese tourists in November 2012.

Eighty one percent of the total bed capacity of 22,889 in 2012 was situated on the 105 islands developed as tourist resorts. The hotel sector share was at six percent that year.

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DPRS replaced with Maldives Correctional Service

President Abdulla Yameen has established the Maldives Correctional Service on December 31, 2013, which replaces the Department of Penitentiary and Rehabilitation Services.

The President’s Office announced that, together with the establishment of the Correctional Service under the Maldives Prisons and Parole Act, the DPRS’s Second Chance Programme will also be discontinued effective from Tuesday.

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Discontinued tourism bed tax will cost state 10 percent of revenue

The People’s Majlis’ failure to extend the country’s tourism bed tax before recess will result in losses of MVR100 million a month, the Finance Minister is reported to have told local media.

As of the start of 2014, the tourism bed tax taken under the Maldives Tourism Act of 1999 will be discontinued because of a deadline added to the act during its second amendment in 2010.

Article 35 – D of the amended act states that within three years of taking TGST (Tourism General Services Tax), the US$8 tourism bed tax per person per night shall be discontinued.

As the TGST was introduced with the year 2011, the current deadline came to pass at 12am this morning.

Quoting the Deputy Commissioner General of Maldives Inland Revenue Authority (MIRA) Hassan Zareer ‘Haveeru‘ has reported that this will result in a reduction of MVR1 billion – or ten percent of annual state revenue. He said the issue had been brought to the government’s attention. Minister of Finance Abdulla Jihad was quoted as saying that this change would incur a loss of approximately MVR100 million per month from the state cash flow.

On 9 December 2013 MP Abdul Aziz Jamal Abubakr, proposed an amendment to the act – on behalf of the government – extending the deadline for another year. However, it was not passed when the Majlis went to recess with the final sitting of the third session on 30 December 2013. The next session of the Majlis will begin on 1 March 2014.

MIRA statistics reveal that  from January – November 2013 the tourism tax accounted for 9.6% (MVR787,340,577) of the total revenue collected by the authority. Within the same period tourism land rents contributed 9.8%, and TGST 27.3% of the total revenue.

On 29 December the Majlis passed a MVR17.95 billion (US$1.16 billion) national budget, despite concerns from the public and various organisations. The central bank Maldives Monetary Authority (MMA) warned that if proposed revenue raising measures in it were not implemented, the budget could not cater for even the recurrent expenditure. The authority anticipates that the resulting budget deficit for 2014 could potentially increase from MVR886.6 million to 4.4 billion (11% of GDP).

The International Monetary Fund (IMF) also proposed the implementation of a number of measures to raise revenue and reduce spending.

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Majlis passes Sexual Offenses, and Social Protection bills

The People’s Majlis has passed the Sexual Offense Bill and the Social Protection Bill ,sending them for ratification by the president.

The Sexual Offenses Bill was passed with a majority vote of 67 from 69 members who took part. The Social Protection Bill was was passed unanimously with 69 votes.

A third bill – the third amendment to the Employment Act – was also passed in the final sitting of the third session of the Majlis on 30 December 2013. The amendment was brought to chapter five of the act regarding the employment of foreigners.

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MMA Governer resigns before calling on state to minimise expenses

Maldives Monetary Authority (MMA) Governer Dr Fazeel Najeeb has called on the state to minimise expenses in a press conference held to announce his resignation on Tuesday.

Najeeb said that the biggest challenge faced by the country’s economy is the structure, which is inappropriate for a nation of this level. He elaborated on his comments, saying that the state often had to resort to printing additional money to meet the “far too hefty expenses of many state institutions”.

“A central bank must not resort to printing and releasing money, especially at a time when the economy is as weakened as it is now. Even more importantly, at a time when obtaining foreign currency is this tight,” he stated.

Najeeb advised that the best option to tackle the difficulty in obtaining foreign currency – due to the increasing amount of Maldivian currency being printed – is for the central bank to halt reprinting more Maldivian rufiya. He explained that increasing the amount of Maldivian currency being printed at a rate faster than it is possible to obtain foreign currency is one of the biggest threats to the economy.

He further called upon the parliament to expedite the passing of bills to facilitate increased state earnings and to improve the structure of the state.

He also appealed to the state to tighten fiscal policy so as to reap the best possible results from the established monetary policy framework.

Achievements during five years as governor

Announcing his resignation, Najeeb stated that he held no regrets regarding any decisions he had made while serving as governor, and that he was leaving the post in good conscience.

He confirmed that his decision to resign had not been due to any political pressure and that it had been purely a personal decision based on his familial situation.

Najeeb detailed what he described as his main achievements during the five years he served as head of the MMA, as well as other notable work he was leaving incomplete as he leaves his position.

Among the achievements mentioned, Najeeb noted the introduction of a banking law, a regulation under which banks and the financial sector can be regulated, and guidelines under which the insurance sector can be regulated.

He also added that he had been able to establish major developments on an operational level on an anti-money laundering structure with the involvement of many institutions.

He further highlighted other major prospects on which work had begun, but that had not yet reached completion. This included the establishment of an anti-money laundering act, an insurance act, and a mortgage act. He also spoke of having begun work on renewing the MMA Act and in bringing amendments to the banking law.

He revealed that he had sent drafts of many of the pending bills to the relevant authorities for amendments, tabling, and ratification.

Najeeb stated that he would not be seen in the political arena, adding that any work he conducted for the state in future will be on a purely voluntary basis.

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MDP reveals candidates competing in Male’ area primaries

The Maldivian Democratic Party (MDP) has announced the names of candidates competing in its parliamentary primaries for thirteen Male’ City constituencies.

The party also announced that three candidates won the ticket without a primary because they were the only candidates contesting in primaries for those seats.

The three candidates in question were Medhuhenveiru MP Ali Azim, Galolhu Uthuru MP Eva Abdulla, and Maafannu Uthuru MP Imthiyaz Fahmy, who contested for the constituencies they currently represent.

Among other sitting MP s who are contesting in the primaries are Hulhuhenveri MP ‘Reeko’ Moosa Manik, Medhuhenveriru MP Ali Azim, Henverirudhekunu MP Hamid Abdul Ghafoor, and Machangolhi Uthuru MP Mariya Ahmed Didi competing for the seats they currently hold.

Majlis Chair and Keyodhoo MP Abdulla Shahid will compete for the newly introduced Henveiru Uthuru constiuency ticket and Maafannu Dhekunu MP Ibrahim Rasheed ‘Bonda’ for the newly introduced Maafannu Medhu constituency (formerly Villi Maafannu).

Candidates competing in the primaries for all constituencies other than the thirteen Male’ City areas were announced last month.

The only sitting MDP MP s who are not competing in the primaries are Maafannu Hulhangu MP Abdulla Abdul Raheem, Hoarafushi MP Ahmed Rasheed, Komandoo MP Hussein Waheed and Gaddhoo MP Zahir Adam.

In addition to sitting MPs, former members of the Majlis and the Constitutional Assembly, senior members in the MDP government, prominent party activists, and other famous national personalities will be competing in the MDP primaries scheduled to be held on 24 January.

The parliamentary elections are to be held on March 22 to elect the 85 members of the 18th Peoples Majlis for a five year term.
The complete list of candidates competing in the MDP primaries for Male’ area constituencies can be seen here.

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