Tag: Ahmed Adheeb

Authorities plan museum of finance

Financial authorities and service providers in the Maldives yesterday (May 13) reached an agreement to establish a museum of finance within the capital over the next two years, local media has reported.

The agreement, which was signed by the Tourism Ministry, Maldives Monetary Authority (MMA), the Bank of Maldives (BML), the Capital Market Development Authority (CMDA) and private enterprise Allied Insurance, was reached during a Pension Office meeting held at the Kurumba Maldives resort.

Pension Office Chief Executive Officer Hussain Manik was quoted in Sun Online as claiming that obtaining funding for the project, expected to be established in a corner of the existing National Museum building in Male’, would begin soon.

Tourism Minister Ahmed Adheeb told local media that the museum of finance would aim to provide visitors with an overview of the economic history of the Maldives.

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Government confident of meeting 2012 tourism goals despite “political turmoil”

Maldives tourism authorities remain confident the country will meet its ambition to welcome one million visitors to the country during 2012 despite ongoing “political turmoil” in the Indian Ocean over the last year.

The country plans over the next 12 months to hold a number of celebrations to commemorate 40 years since its travel industry was founded.

Minister of Tourism, Arts and Culture Ahmed Adheeb has told media in a press conference on Monday that should the Maldives achieve its aims of attracting one million visitors to the country during 2012, it could be effectively seen as being equivalent to welcoming two million arrivals due to the challenges of overcoming the “political turmoil” following February’s controversial transfer of power.

“We are closing in on that target with a lot of challenges. We are working with major obstacles due to the present crisis in the country,” Adheeb was quoted as saying.

The comments were made as former President Mohamed Nasheed, who alleges he was forced to resign from office on February 7 this year under “duress”, pleaded for tourists to “be more aware” of the political problems facing the Maldives.

“Tourists should be more aware of what is going on here. They may think they are remote from Male’ [the capital] but many of the staff are from here,” Nasheed told the UK-based Guardian newspaper this week.

The vast majority of tourists coming to the Maldives stay at its secluded island resorts that are classed as uninhabited, therefore making them exempt from local laws that outlaw the sale and consumption of alcohol and pork products, as well as openly practising any faith other than Sunni Islam. This resort model also keeps most tourists away from the partisan politics of the country, as well as the  unrest that occurred in the capital of Male’ and other islands earlier this year.

Nasheed had previously called for a tourism boycott of the Maldives, as both himself and his supporters continue to question the legitimacy of the government of President Dr Mohamed Waheeed Hassan, his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition Maldivian Democratic Party (MDP).  The party are still pressing for early elections this year, despite a Commonwealth-backed Commission of National Inquiry (CNI) concluding the transfer of power in February was constitutional.

Despite fears about the impact of political uncertainty, Deputy Tourism Minister Mohamed Maleeh Jamal claimed back in September “the hard days” were over for the Maldives tourism industry following the release of the CNI’s findings.

The MDP has itself accepted some of the recommendations of the CNI report relating to judicial reform and holding security officials accountable, despite maintaining “concerns” over how the report was compiled and the potential “comical” implications of its conclusions.

Accepting the challenges faced by the tourism industry, Adheeb claimed that the entire industry was united in seeking to boost the prospects for tourism in the Maldives.

“The industry is driven by itself. This industry is mature enough to continue without any government interference. The difference between the former government and us is we won’t micro manage the industry. We are facilitating the process within the contours of the laws and regulations,” he told local media.

Amidst these claims, the Maldives last Thursday (October 18) picked up a number of accolades at the World Travel Awards (WTA) in Singapore that Adheeb claimed highlighted the strength of the country compared to other Indian Ocean destinations.

“This shows that Maldives is a stronger tourist destination than other Indian Ocean island nations such as Seychelles, Mauritius or Madagascar,” he was quoted as telling Sun Online.

The accolades picked up by the Maldives at this year’s WTA included awards for being the leading destination in the Indian Ocean for cruise and honeymoon holidays.  Also honoured was Ibrahim Nasir International Airport (INIA) – presently at the centre of legal and political wrangling – which took the prize for leading regional airport.

Over half way

As the Maldives also commences a number of events to celebrate 40 years since the inception of the country’s tourism, official figures from August showed the Maldives was over half way to meeting its million visitor aims for 2012.

Arrivals to the Maldives between January and August 2012 totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011, Ministry of Tourism, Arts and Culture figures showed.

Deputy Minister Maleeh was unable to respond to Minivan News about Adheeb’s comments and the challenges facing the wider tourism industry at the time of press.

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Bikini business: the challenges of paradise on a budget

This story was originally published on Minivan News’ spin-off travel review site, Dhonisaurus.com.

With tourism authorities committed to branding the Maldives as a luxury destination, the establishment of guest-houses for independent travellers is presently seen as more of a niche “bonus” for the country’s economy, rather than an up-and-coming business model.

The Ministry of Tourism, Arts and Culture, currently in the process of attempting to claw back consumer confidence in the destination damaged during the early months of 2012, is also in the process of outlining a fourth long-term master plan for pursuing growth within the Maldives travel sector.

As part of these plans, government officials have said they are presently analysing the contribution to the economy of all tourist properties – including resorts, safari boats and guest-houses – before unveiling how each sector will be developed in the future.

While the demand for experiencing guest-houses on the Maldives’ inhabited islands is said to be comparatively “low”, one expert providing independent holiday experiences in the country has said there was interest nonetheless in providing options for backpackers and budget holidaymakers.

As a Muslim traveller first arriving to the Maldives in early 2011, Raki Bench was looking for alternatives to the country’s well publicised island resort experience. Bench, an internet marketing specialist by trade, said that after asking around at what was then Male’ International Airport, he found it was possible with perseverance to negotiate an escape to a local guest-house or even a stay on a desert island.

“We didn’t want to go to a resort and were interested instead in guest-houses and experiences with local people,” he said.

However, when considering the country’s strictly Islamic society, which outlaws certain holiday staples travellers may take for granted at other destinations – like wearing bikinis and purchasing alcohol – Bench said that catering for the needs of holidaymakers outside the Maldives’ resorts was not without its challenges.

Aside from cultural sensitivities, he pointed to several logistical and transport issues, as well as a lack of government support in recent years for the sector, as key concerns holding back the development of the guest-house industry.

Yet almost a year and a half after first arriving to the country, Bench is now the founder of the Guest-houses in Maldives website, which offers specially prepared packages to tourists from all over the world looking for a more budget-friendly, independent holiday experience.

“We find that the business caters for a mix of more budget-focused travellers and also those looking to explore the natural environment in the country. Since 2011, we have started to get interest from families wanting to come to the Maldives on a budget,” he said.

“At present, our main customer-base are Europeans for sure, there are a lot of backpackers staying in Sri Lanka for instance with an interest in coming over to the Maldives for a few days to stay in guest-houses. We also receive some requests from countries like Singapore, but Asia is not our main market.”

The magic number

As the Maldives this year aims to attract a total of one million holidaymakers to its islands, Bench stressed that the country’s reputation as a luxury destination underlined that fact that the guest-house model would not cater for everyone’s tastes.

He added that in recent years, despite previous government commitments to provide more mid-market accommodation for visitors wanting to explore the country’s inhabited islands, further support had been lacking.

“The government has not really been helping guest-houses at all. It is a small sector, but it is showing growth within the wider tourism industry. I don’t see any promotion from authorities,” added Bench, who said he was realistic about the economic reasons for this.

“I do understand why this is the case. After all what is the point in promoting an industry with a value of US$50 a night when you compare that to what resorts can make.”

According to recently published official travel industry figures, the number of bed nights recorded at Maldives guest-houses during January 2012 was up 17.3 percent to 2,867 compared to the same period in 2011.

Over the same period, 622,944 bed nights were recorded by the country’s resorts. Bed nights are used by the hotel industry as a measure of occupancy per person per night.

While the actually occupancy rate of guest-houses was also found to have increased by 2.8 percent in January 2012 over 2011,  guest-house accommodation was found to be only at 20 percent of total capacity, according to the statistics.

Bikini restrictions

From his own experience, Bench said that as the country’s current crop of guest-houses had opened in recent years, not all their proprietors were perhaps experienced in running a travel business – meaning properties were not always being used to their full potential.

“My advice to guest-house owners would be to try and think of the problems they will face,” he said. “Think if there will be daily transfer to your island, think of the restrictions on wearing bikinis on local beaches, therefore is there a resort or private beach nearby?”

Both through his own website, and working as a guest-house product manager for the Maldives Dive Travel company, Bench said that he only offered customers full-board packages. He claimed this was important decision, both as a means to provide the best value for money, but to also overcome the potential challenges in hosting foreign guests.

Taking a typical day staying at a guest-house as an example, Bench said that upon waking up and having a traditional breakfast prepared by their hosts, visitors would then be offered a choice of excursions from diving or surfing, to spending a day aboard a liveaboard boat, private island or even a resort.

“The main reason for this is to leave the island to overcome bikini restrictions. All people who book with us are offered excursions due to the restrictions imposed under local laws,“ he said.

Bench claimed he also aimed to ensure guests booked excursions in advance, as arranging trips such as reef snorkelling or a day on a private beach once staying at a guest-house could prove much more costly.

“You can often find a room yourself at guest-houses for around US$70, which is cheap, but you need to be aware of the regulations and some of the hidden charges that are there,” he said.

Adapting

Despite cultural and legal restrictions on the wearing of bikinis and selling alcohol on the inhabited islands where guest-houses are based, Bench said that increased booking numbers, particularly from European tourists, highlighted that holidaymakers were adapting to the unique nature of more independent travel in the Maldives.

“The increased bookings seen at guest houses in general shows that people are adapting to local cultures during their stay and we haven’t faced too many problems in this regard,” he said.

Aside from guest-houses, with the Maldives’ territories estimated to be comprised of over 90 per cent water, it is perhaps not surprising the safari boats – with their cabins and trained dive staff – have also become an important part of the development of mid-market travel in the Maldives.

Maldives Dive Travel, a company Bench also represents, has itself begun offering guest-house experiences to customers along with its traditional liveaboard voyages, allowing the chance to combine a stay both above the water and on the country’s inhabited islands.

However, Bench said that as a wider industry development, collaboration in the country between safari boat operators and guest-house owners that would allow greater mobiltiy between local islands presently appeared far from viable.

“I know we have thought about combining voyages on safari boats and allowing guests to travel to different islands before. But the only real solution for this would be if a liveaboard boat had the same owner as guest-houses,” he said. “Logistically, for foreign companies like us, this would be impossible to arrange, the infrastructure is not there.”

Bench added that while the Maldives’ laid back island culture was extremely appealing for guests on holidays, a similar attitude sometimes found to be adopted within the country’s ministries and administrative offices also hampered coordination between different industries and sectors.

“Love and nurturing”

Adrian Neville, a veteran of travel writing in the Maldives, told Dhonisaurus that guest-houses had played a role in the development of the country’s holiday industry since being founded in 1972. However, the properties were abruptly closed for many years as of May 1, 1984.

“This was pretty much directly at the behest of the resort owners for obvious reasons and on the spurious grounds of social problems and the wrong type of tourists,” he said. “Of course, now those wrong types are just fine – now they are not ‘hippies’ but ‘independent travellers’.”

While guest-houses had been reintroduced back in 2008, Neville contended that he was not sure whether the general attitudes of resort owners in the country would have changed much, particularly in terms of supporting the fledgling industry.

“The sector is up and running, but it is a weakling in need of love and nurturing,” he said.

Neville claimed that while there was clear interest in the further development of a guest-house sector to allow independent travellers to take in the Maldives, the country’s long-term segregation of tourists from local communities may also serve to limit the potential.

“There is sufficient interest but it won’t grow quickly until the issue of separation or, most unlikely for the foreseeable future, co-habitation with different lifestyles, is resolved,” he said.

According to Neville, there was one key challenge that he ultimately believed would hold back the wider development of guest-houses and opening up independent travel up to tourists.

“Transport. Transport. Transport,” he added. “The ferry system is a sine qua non. A no brainer and a great idea but sadly it has died, withered on the vine as it tried to establish itself. The economic plan to make it happen turned out not to be viable,” he said. “Until this is reworked not enough is being done to open [guest houses] up to tourists.”

Master plan – version 4.0

Ahmed Adheeb, the recently appointed Minister for Tourism, Arts and Culture, said that provisions allowing guest-houses to cater for tourists were provided under law back in 2008.

However, with the government of President Mohamed Waheed Hassan having replaced Mohamed Nasheed’s administration earlier this year, tourism authorities have said they were now in the process of devising an overall tourism plan that would include potential developments for independent travel.

Adheeb said that it was presently difficult “to say where we stand on guest-houses” as the industry was still relatively niche compared to the established resort market.

“The Maldives continues to be branded as a luxury destination within the tourism market. It is a bonus therefore that these guest-houses allow us to supply mid-market demand,” he said.

With the Ministry of Tourism of Tourism, Arts and Culture working with bodies like the World Tourism Organization (UNWTO) on the development of a fourth national “master plan” for outlining tourism industry developments, the exact nature of diversification was as yet undecided.  The third master plan was concluded last year.

“We are formulating our plan right now. This will look specifically into how many guest-houses have been built and how they contribute to the economy,” he said.

Adheeb said that he would be also be looking at quality standards as well as issues of security at more independent properties as part of the master plan before divulging how the government might look to support and promote guest-houses.

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Foreign investors need “one-stop shop” to navigate Maldives bureaucracy: MNCCI

Local trade authorities must do more to simplify foreign investment procedures in the country as they attempt to increase income of dollar revenue, the Maldives National Chamber of Commerce and Industries (MNCCI) has claimed.

Ahmed Adheeb, an MNCCI member and Chief Operating Officer of the Millennium Capital Management (MCM) investment group, said he believed the country was failing to follow in the footsteps of markets like Sri Lanka by establishing a board of investment to help foreign companies navigate the complexities of local business culture.

“In order for the Maldives to build investor confidence I believe that firstly we need a board of investment like they have in Sri Lanka,” he said. “The Maldives has many different ministries that must be navigated to get licenses [to operate businesses]. We need a one-stop shop [for foreign business] if we are to bring international investors into different areas.”

Adheeb’s comments were made after members of the MNCCI recently met with their Pakistani counterparts in Male’ to discuss business and investment opportunities across the Maldives. Although no specific areas of interest for local investment were raised as yet during the meetings, Adheeb claimed that recommendations were made regarding potential opportunities for putting money into smaller and medium size tourism developments like guesthouses and safari boats.

The MNCCI said that it also acknowledged requests from the Pakistani representatives to host a single country forum here in Maldives to promote bringing certain food and pharmaceutical products to local markets.

With growing fears over the lack US dollars currently being circulated in the Maldives, generating additional foreign currency revenues has been identified as a key part of the government’s economic stabilisation strategy.

While calling for simplified investment procedures for businesses coming to the Maldives, Adheeb claimed that he hoped to see protection measures for local small and medium enterprises in the country.   One such example was in potentially setting caps on the minimum size of investments that could be made by foreign parties in the country.

“We should try to ensure that we are not endangering existing local small and medium enterprises,” he added.

However, amidst ongoing attempts by the government to try and devalue the rufiya to try and stabilise the Maldivian economy – under pressure from bodies such as the International Monetary Fund (IMF) – Economic Development Minister Mahmoud Razee claimed that recent financial uncertainties has not significantly impacted potential foreign investment in the Maldives.

“Generally the interest is still there. In the development of Hanimaadhoo for example we have seen 19 groups expressing interest in the project. Ten of these [parties] were foreign investors,” he said.

Razee claimed that he did not believe that recent financial upheaval in the country including fears over a shortage of US dollars finding their way into the local economy had not led to cases of “specific hesitation” from enterprises looking to invest in the country.

“Obviously [the country’s finances] are something investors will be looking into, but we believe this is not a significant setback as a result,” he added.

Razee said that the government had expressed interest in working with foreign business to develop national agriculture and aquaculture, as well as transport infrastructure.

President Mohamed Nasheed had stated last year that private sector investment was expected to bring US$1 billion to the local economy between 2010 and 2013.

However, aside from issues of financial stability, a former Australian Supreme Court Justice who spent several weeks in the Maldives this year analysing the functioning and impartiality of the country’s judiciary said that he believed legal reform had a key impact on economic performance.

After reporting that the Judicial Services Commission (JSC) – designed to serve as a legal watchdog – was compromising its accountability and obstructing the creation of an independent judiciary, Murray Kellam claimed that an impartial judicial system was a key factor in encouraging foreign investment.

Kellam said that Singapore was a perfect example of the long-term financial transformations possible with focused and impartial legal reform.

“[Singapore] understood the value of a civil system that is incorruptible and competent. They spent a lot of money on their judiciary and Transparency International now rates their civil legal system as one of the best in the world,” he told Minivan News in March this year.

“Singapore realised that one of the best ways to attract investment was to have a system whereby international investors knew they would get a fair go in domestic courts. If you look at the circumstances in other parts of the world where investors have no confidence in the judiciary, that deters investment and takes it offshore. They’ll go somewhere else.”

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