Maldives sponsors BBC weather in US$250,000 deal

Maldivian tourism authorities are pursuing private sector funding to secure advertising with prominent media networks such as CNN, after this week signing a sponsorship agreement with the British Broadcasting Corporation (BBC).

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News that authorities were presently looking for ongoing partnerships within the country’s resort industry to help fund a year-long global media campaign to offset the impacts of negative international headlines believed to have affected tourism this year.

The government yesterday finalised a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services. Tourism authorities said the strategy reflected a collaboration between the government and the private sector to try and strengthen arrival numbers to the country.

Under the recently reinstated “Sunny Side of Life” branding, Maleeh said the sponsorship of the BBC’s weather services will run from June 18 to August 27 on both the BBC World TV service as well as the broadcaster’s website.

Pubic relations

In April, the Maldives Marketing and Public Relations Corporation (MMPRC) confirmed the appointment of New-York based public relations agency Ruder Finn to “oversee the overall media coordination and achievement of PR related solution for destination Maldives.”

According a contract speculated to be worth over US$150,000 per month, Ruder Finn is required to work to: “ instill confidence in the tourism industry of the Maldives, gain understanding and public acknowledgement of the Maldives in the international community and ensure sustainable development of the tourism industry.”

Questioned whether the BBC sponsorship agreement was designed to try and generate greater media coverage about the Maldives on international news services, Maleeh claimed the MMPRC’s promotion plans were focused on tourism rather than generating headlines.

“At present we are trying to build investor confidence in the country,” he claimed. “There has been too much focus on stories such as how the Maldives will be sinking in 30 years.”

Maleeh pointed to recent coverage of several events in the lead up to February’s controversial transfer of power – such as former President Mohamed Nasheed’s proposed spa ban – as an example of headlines that had damaged confidence among tourists and investors in the Maldives.

The previous government under Nasheed claimed a spa ban introduced back in December 2011 was made in response to criticisms made against it during a demonstration of opposition politicians and NGOS relating to “un-Islamic” practices in the country.

“Mainstream” promotion

Once the present BBC sponsorship agreement ends in August, Maleeh added that the MMPRC and tourism authorities hoped to secure more funding to continue its advertising plans. He said that the motivation at present was to extend advertising ideally to “all mainstream media organisations” such as organisations like CNN.

Maleeh stressed that funding remained the biggest issue at present to extending advertising efforts.

“We are seeking support from local and international hospitality groups right now,” he said. “We are still waiting to receive support. However, other hotel chains have shown an interest.”

During the signing of the BBC agreement yesterday at the Conrad Rangali Island Resort, Tourism Minister Ahmed Adeeb welcomed the assistance of local business tycoons Mohamed ‘Champa’ Moosa and Mohamed Umar Maniku in securing the deal, according to local media.

Adheeb told Sun Online that authorities had decided to re-use the country’s “The Sunny Side of Life” branding due to previous experiences the industry had with the slogan, as well as negating costs associated with setting up an entirely new brand.

“Over the past years it has become a very expensive brand. I believe that if we were to opt for a rebranding it would in the least cost us US$50 million. We don’t have that much of a budget. The new government decided to go forward with the old brand,” he was quoted as telling local media.

Meanwhile, Vice President Waheed Deen, who was also present during the signing, lauded the financing of the new ad campaign as an “achievement” and a “success” for the country as it celebrates 40 years since the inception of Maldivian tourism during 2012.

“Coup” allegations

The 50,000 member-strong opposition Maldivian Democratic Party (MDP) maintains it was ousted from power on February 7 following what then President Mohamed Nasheed described as a coup d’état planned by political opposition, sponsored by some wealthy resort tycoons and carried out by a mutinous police and military. The party has continued to claim that President Dr Mohamed Waheed Hassan’s government is illegitimate and represents a return to the autocratic era of Maumoon Abdul Gayoom.

Such criticisms of the present government have led to the establishment of the Maldives Tourism Advisory (MTA) by the Friends of Maldives NGO that names resorts alleged by the MDP to have involvement in the “coup”.

In April, the Maldives Association of Tourism Industry (MATI) has issued a statement expressing “serious concern” over what it describes as a “concerted international campaign” against several of the country’s resort operators.

MATI claimed that calls from the Maldives Tourism Advisory (MTA) for tourists to avoid certain properties on the basis of ownership were “libellous in the extreme”, as the allegations against the tourist resort operators “have not been proven either through an investigation or a court of law.”

The MTA website features a ‘traffic light’ system with “red” resorts recently appearing to have been expanded to include an assortment of 18 properties owned by Vice President Waheed Deen and senior figures associated with the new ruling coalition, including Jumhoree Party (JP) Leader Gasim Ibrahim and Progressive Party of the Maldives (PPM) MP Abdulla Jabir.

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Maldives UK’s most desirable travel destination: Kuoni

The Maldives has topped a poll of most desirable travel destinations among its UK customers, according to a study by tour giant Kuoni. The country has held the rank since 2005.

The Maldives was followed by Thailand, Sri Lanka, the United Arab Emirates (Dubai) and the USA, including New York holidays.

“The Maldives also retained its top slot for honeymoon destinations and topped the wish list for digital natives, better known as Generation X, Y and Z. Sri Lanka holidays retained ‘Number one Destination for Weddings’, Kuramathi Island Resort in the Maldives kept the top slot for ‘Family Destinations’, as did Thailand holidays for solo travelling,” read a statement from the tour operator.

Specific trends in demand identified in the customer survey were, according to Kuoni, “a thirst for discovery, authenticity of experience, social responsibility, and face to face contact with a travel expert when booking.”

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MMPRC releases billboard ‘mock-ups’ of new Maldives branding

The Maldives Marketing and PR Corporation (MMPRC) has released a series of mock-up billboards displaying the country’s ‘Always Natural’ branding in the context of how it would appear to potential visitors.

The new logo and slogan, designed by Thailand-based global tourism consultancy QUO Keen to replace the 11 year-old slogan ‘The sunny side of life’, was unveiled last week by the MMPRC.

In an accompanying statement, the MMPRC said it had worked “in close collaboration with Minister of Tourism Arts and Culture, Dr Mariyam Zulfa, the Maldives Association of Tourism Industry (MATI) and Maldives Association of Travel Agents (MATATO). “

“Each stakeholder provided invaluable advice, input and contribution to the new slogan and logo,” the statement read. After a “year-long consultation, research and design process, involving industry and government”, and consultation with “dozens of tourism and other industry stakeholders, as well as the general public”, the new branding was approved by Cabinet on Tuesday.

In March, the MMPRC announced a public competition, calling for submissions focusing on the “unique selling points” and the “emotional selling points” of the Maldives, “based on a fundamental truth”. Despite the many submissions and an extension of the deadline, the stakeholder committee eventually opted to tender for a professional consultancy.

The new branding, including the slogan and a fingerprint logo consisting of islands, corals, turtles, sharks and herons that transitions from blue to green, was met with mixed reviews this week with some people drawing comparisons to the logo of Washington-based environmental advocacy group, Ocean Conservancy.

Similarities with the new Maldives branding raised legal concerns

In response to the concerns, the MMPRC received legal advice from trademark lawyers Ananda Intellectual Property Limited (AIP), which noted that while there was a “very weak degree of graphic similarity between the two devices”, such graphic similarity “is in our opinion not such to create a risk confusion and there is no risk of legal objection due to such graphic similarity.”

“The size and composition of the device are very different from a trademark law point of view. The size and shape of the two devices are different. The [Maldives branding] is more detailed and in its composition. In particular the oval shape, the number of lines of fishes and the variety of fish species are very distinctive and different features and overall produces a strong graphic difference and impression between the marks. Last but not least, one device is hollow, one is not,” the legal advice read.

“We do not consider that the degree of similarity of the marks is such that the usage and protection strategy of a country brand such as [the Maldives branding] would conflict with the mark [of Ocean Conservancy].”

At the launch this week, State Minister for Tourism, Thoyyib Mohamed Waheed, explained that the new branding would broaden the Maldives’ brand away from just tourism, making it more relevant for attracting investment in industries such as energy and fisheries, as well as allowing cross-marketing opportunities on Maldivian exports such as tuna.

Download the full size billboards

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Schwack targets Maldives ad shakeup with screen service launch

Schwack Maldives plans to roll out promotional television screens detailing ferry times, current doctor duties at local hospitals, dollar exchange rates and news across the Maldives after launching the technology exclusively in Male’ this week.

According to the company, the Schwack Connections initiative was launched with 13 screens at seven restaurants and cafes around Male’, with further launches planned both within the capital and at a number of destinations like Addu Atoll.

Schwack Maldives’ Director Althaf Mohamed claimed that amidst present financial uncertainty in the Maldives,  the service was an entirely new way for business to advertise services and products in the country.

The screened information is designed to combine advertising and news with health information, trivia and even celebrity tweets and other social network updates, according to the company.

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Government spending on tourism marketing comes under scrutiny

A tour operator has claimed that the government should not spend so much money marketing multi-million dollar resorts, particularly since it receives such limited revenue from the industry in return.

Ahmed Firaq, chairman of tour operator Inner Maldives, said the government should not be so much money on tourism advertisement marketing resorts as many had their own marketing campaigns.

Firaq told newspaper Miadhu that the “amount of money being spent on tourism advertising is the same money which could go into the development of social services”.

Government tourism advertising

State Minister of Tourism Thoyyib Mohamed Waheed said the government’s budget for tourism, including marketing, is planned each year in advance.

“The money [for marketing] comes from both stakeholders and the government,” Waheed said, mentioning that the industry adds to the budget if it is asked by the government.

“If there is not enough funding, we approach the industry,” he said.

Waheed said the “industry is quite cooperative” but added the government “does needs more help and support from it.”

Secretary General for the Maldives Association of Travel Agents and Tour Operators (MATATO) Mohamed Maleeh Jamal said after the 2004 Tsunami the marketing budget “drastically increased” to about US$9 million per year.

This number remained unchanged until the 2008 economic depression, when the budget decreased to its current amount of US$2.5 million, used mainly for destination marketing.

Sim Mohamed from Maldives Association of Tourism Industry (MATI) said the government has “very little money to play around with. When this government took over, [the country] was broke.”

Sim said marketing was essential in times of crisis, particularly following events such as the 2004 tsunami or the financial depression, as “you need to let people know you are still here.”

Jamal noted that MATATO’s main concern “is the total number of rooms is increasing and the [marketing] budget is down. If it is reduced further, in the long run we will be disadvantaged.”

Jamal estimated this year’s spend on tourism marketing across the Maldives to be around US$30 million. The industry, he said, was providing around US$20 million for specific product marketing.

He said in a time when the tourism industry is being “expanded north to south” the government should at least maintain the previous budget, if not increase it.

With the new tourism taxation bill being considered in parliament, (a bill that will phase out the ‘bed tax’ which currently stands at US$8 per night) the government will be getting an additional six percent in revenue from the tourism industry, “but they are still reducing the marketing budget,” Jamal claimed.

Marketing the Maldives as a tourist destination

Sim agreed that “the government should get out of [marketing] all together” and “business should be left to businesses.”

But he expressed his appreciation for the government’s efforts to help the industry, saying “we like what the government is trying to do.”

Sim believes “the government should regulate and set national and industry standards” and not focus so much on advertising.

“It is tour operators who sell the Maldives,” Sim said, and “they are doing a good job at it. We should keep them happy.”

He added that “the tourism industry is not about resorts alone, but also employment, transport and aviation.”

He also questioned on whether the government should be spending any money on marketing the Maldives as a tourist destination, saying “it sells itself.”

And although there are other similar products on the market, Sim says the Maldives offers “unique features” and not a lot of money is needed to market it as a travel destination.

However Jamal said competition in the region is a major concern. He noted that the Sri Lankan government has allocated US$50 million to tourism marketing this year, a significant amount compared to how much the Maldivian government is spending.

“We need to maintain occupancy,” Jamal said, adding that the Pacific islands, the Middle East and African countries like Mozambique were quickly becoming major competitors.

One of the main marketing strategies for the Maldives, according to Jamal, is “destination branding”. This brings another major concern for MATATO to the surface.

Jamal said tour operators “now say the Maldives is sinking”, and asked why travel agencies would send their customers to a “sinking” destination.

Other traditional marketing strategies for the Maldives have been road shows and travel fairs. Jamal says road shows in China, Eastern Europe and the Middle East have been cancelled for this year, and that the Maldives is attending eight fewer travel fairs than it did last year.

“We don’t see much [advertising] in magazines,” Jamal said, adding that existing advertising contracts with television channels BBC, National Geographic and CNN will expire this June “and there is not enough budget to renew them.”

“The success of the tourism industry in the Maldives depends on whether or not we maintain advertising,” he said.

On his return from Copenhagen President Mohamed Nasheed said the Maldives’ growing significance on the world stage as an icon of climate change – and the associated free publicity – was worth far more than the government could ever spend on paid advertising.

Tourism Revenue

One of Firaq’s complaints was that the government should be spending this money on development for social services and not on tourism advertising.

When asked about Firaq’s statement that the revenue from the tourism industry should be spent on developing social services and not on marketing, Waheed noted that the money “doesn’t come straight to the ministry, but it goes to the Treasury.”

The Treasury then decides how the money is allocated; some of it goes to social services and some goes back to the tourism industry.

Press Secretary for the President’s Office Mohamed Zuhair said “there is no direct relationship between tourism revenue and social service development.”

He added that the expenses of tourism marketing are jointly assumed by MATI, the Tourism Ministry and the Tourism Board.

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