Tourist arrivals climb on strength of Asia Pacific demand

New tourist statistics show there were 246,606 arrivals to the Maldives over the first three months of 2011, a figure up 12.3 percent over the same time last year on the back of strong interest from the Asia Pacific and Eastern Europe, according to the Ministry of Tourism, Arts and Culture.

Between January and March 2011, the Asia Pacific region in particular posted significant growth in tourist numbers, which were up by 36 percent compared to the same period last year, amounting to 69,024 arrivals to the Maldives – 28 percent of the total number of visitors recorded over the quarter. China was the region’s key tourist market for the Maldives, with 52,345 recorded visitors over the first three months of the year representing an increase of 53.2 percent compared to back in 2010. Arrivals from South Asia were also up by 41 percent to reach 9,913 visitors, a figure helped primarily by increased interest from India. Indian arrivals between January and March compared to the same period last year rose by 46 percent to 6,891 people.

The total tourism figures for the South Asia region, which includes nations like Sri Lanka, Bangladesh and Pakistan, accounted for just four percent of the total number of arrivals to the Maldives between January and March this year. Visitors from Europe, who accounted for 68.2 percent of total arrivals to the Maldives during the quarter, rose by 4.7 percent to 168,307 over the same period of time the previous year.

The statistics show that the increase was driven primarily by demand from Western European nations such as France, Austria and Belgium, as well as 27,324 visitors from Central and Eastern Europe, a figure up by 22.2 percent during the quarter when compared to 2010.

Western Europe, which accounted for 27.1 percent of the total number of visitors to the Maldives during the first three months of 2011, saw 66,755 people travelling to the Maldives over the period, up 8.8 percent from the 61,341 visitors recorded the previous year.

However, despite the overall increase in arrivals, visitor numbers from northern and Southern Europe declined over the three months by 4.1 percent and 3.3 percent respectively, particularly within key markets like the UK and Italy.

The number of travellers from the UK, which represented 11.2 percent of all tourist visitors to the Maldives between January and March this year, fell by 8.2 percent to 27,728 when compared to last year. Similarly the number of Italians travelling to the country, 14.8 percent of total visitors between Janaury and March, fell by 2.6 percent to 36,468 people over the same period of time.

In other international regions, the figures recorded that tourist arrivals from the Middle East were up by 10.5 percent to 2,428 over the quarter compared to last year, while arrivals from Africa increased by 10.1 percent amounting to 1,269 people.

Visitor numbers from the Americas increased by 18.8 percent over the three month period to 5,578, according to the figures.

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Plane as day: Mega takes off on back of Chinese tourism boom

The Maldives’ newest international airline, Mega Global Maldives, has just completed its maiden international flight between Hong Kong and Gan, delivering over 230 passengers to resorts in the southern atolls.

The charter flight was the first of what Mega intends to become a weekly service, delivering thousands of tourists a month under an arrangement between the airline, participating resorts, and Chinese tour operators.

Minivan News spoke to Mega’s CEO George Weinmann, a former rocket and satellite engineer with aerospace giant Boeing, as he stood on the beach of Herathera resort surrounded by “235 very happy guests about to go sailing – they are already talking about when they’re coming back.”

Weinmann has lived in China for seven years and believes that the potential of the Chinese market in the Maldives is being underestimated by an industry focused on its traditional, European-centric market.

“My first experience of the Maldives was on honeymoon with my wife, who is Chinese,” he said. “At the time I was looking for an investment opportunity and saw a big market that was developing fast – it has since exceeded our expectations.

“The Chinese market is deep and very rich. We believe there are further improvements to how the market is targeted and served.”

In 2010 the number of arrivals from China eclipsed arrivals from all other destinations, for the first time in the Maldives’ history. The influx of Chinese guests at resorts has been credited with partially cushioning the industry from the economic crisis in Europe, particularly during the warmer off-season when many sun-seeking Europeans have the option of travelling to closer countries such as Greece and Spain.

Weinmann believes that many resorts haven’t given the Chinese market the attention it requires to develop, in the mistaken belief that the boom in Chinese visitors is a temporary anomaly – a belief perhaps stemming from the trend among many Chinese guests to stay 2-3 days, while their European counterparts log an average of 10-14 days per visit.

“I don’t agree with that idea at all,” says Weinmann. “It’s a little like going back to the 1950s and saying that while the US is making a resurgence, Europe is still the place to be.”

The Chinese, he said, had become one of the biggest-spending tourism demographics in destinations such as France, with a per-person spend “substantially higher that most other [nationalities] visiting the EU. That was not a fluke – it was developed over five years.”

He noted that a colleague in China “has booked 60,000 airline seats to the EU on the basis of that demand from tour operators, and is booking more because of the demand.”

In the Maldives, Weinmann predicts eventual demand for an additional 20 resorts catering to the Chinese market, open all year round. Unlike the European sector, he explains, the Chinese market “doesn’t drop in volume. The weakest months for China are March and April, but that’s the start of the honeymoon season in Korea.”

Mega was unlikely to see competition from the much larger Chinese and Hong Kong carriers, Weinmann suggests, because they still regarded the Maldives as a niche market.

“There currently no flights from Asia that arrive in the Maldives in day time, which is not convenient for either the resorts or the seaplane operators,” he said. “We are seeing travel agents who are not satisfied with the schedules.”

Mega’s initial focus on charter flights in conjunction with tour operators and resorts not only ensures an early steady steam of income for the fledgling airline, but allows development of the product for Chinese visitors. Weinmann explains: “The benefit for us is that as a Maldivian airline we can start the whole resort experience with clients the moment they step on the plane. Tour operators like that.”

The collaboration with resorts and the early focus on the south of the Maldives, had meant a great deal of early support for the airline from resorts such as Shangri La and Herathera, Weinmann says.

“The southern resorts are very keen to have us, and have put together a very attractive package [for us]. We flew some Chinese guest relations officers with us to Herathera, several of our senior management speak Chinese, and the resorts are hiring some people from Thailand who have experience with the language.”

Eventually the airline hopes to operate a scheduled service, and potentially a domestic connection between Male’ and Gan to connect the Gan-Hong Kong route to more of the Maldives “as the market develops.”

The potential for opening other domestic routes was limited by the 264 seats on the company’s 767, but Weinmann says he sees potential to develop routes between the Maldives, Korea, Thailand and India, the latter for business travel as well as tourism – “the Indian [tourism] market is about two years behind China”, he suggests.

Weinmann says Mega has learned from the experiences of Air Maldives, the national flag carrier that declared bankruptcy in 2000 after ambitious over-expansion into international routes.

“I’m very aware of Air Maldives, and although didn’t experience it myself I have from the point of view of some of our staff who did,” he says. “A new airline has to be careful of its own success – if you get the market right it can be tempting to expand quickly. But each plane is a huge one-time cost, and several planes in a row can quickly deplete your financial resources. Then if you realise you haven’t got the market quite right, your expenses are very high and you have to hope you have very deep pockets. We have been very careful about how quickly we have developed.”

Setting up a new airline is not without obstacles, but Weinmann says Mega has been able to overcome those placed in its way so far. As a local carrier it was, he says, gratifying to see bodies such as the Civil Aviation Authority show “enthusiasm for us to succeed.”

Tourism Minister Dr Mariyam Zulfa said the resort industry was “on the right track” in adapting to rising demand from China, and noted that the Ministry had issued a circular to resorts requesting they provided safely regulations to Chinese guests in Mandarin – tourist fatalities last year were disproportionately Chinese nationals, mostly in snorkeling-related accidents.

There remained, Zulfa said, not enough mid-market beds, which was why the government was pushing for small-to-medium enterprise to develop 3-4 star hotels to compliment the luxury resorts that already existed in the country – a concept Weinmann agrees with: “the Maldives’ geography makes it unique, because the one-resort one-island concept means it can naturally segment the market based on demand.”

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Head of Chinese legislature pledges cooperation with Majlis

China’s legislative body the National People’s Congress (NPC) has pledged closer cooperation with the Maldives Majlis after a meeting between NPC Standing Committee Chairman Wu Bangguo and Majlis Speaker Abdulla Shahid.

Wu met Shahid in Bejing on Monday, reports Chinese news agency Xinhua, and stated that he was keen to expand “mutual trust and economic and trade cooperation” in areas such as fisheries, tourism, infrastructure and construction.

China would encourage Chinese companies to further participate in the Maldives’ national construction and more Chinese tourists to visit the country, Xinhua reported.

Shahid said the rapid growth of the Chinese economy offered inspiration to developing countries, including the Maldives.

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President lays foundation stones for 1350 housing units

President Mohamed Nasheed has laid the foundation stone of 1000 housing units to be built in Hulhumale’ under an agreement between the Maldives and the Chinese government.

The 1000 housing units will be built across 40,000 square metres on the reclaimed island 1.3 kilometres north of Male’ to relieve housing pressure on the densely population city, one of the most congested in the world.

Chinese news agency Xinhua reported that Vice President of CMEC Li Chaoyang, the Chinese contractor building the project, said the firm would would abide by Maldivian laws and respect the and customs of the Maldivian people in the process of carrying out the project.

“We will strictly implement the contract, elaborately organise the construction works, and ensure the quality of the project. We will deliver an eco-friendly, enjoyable and high quality residential area for the Maldivian people,” Li said.

Xinhua reported Chinese Ambassador Yang Xiuping as saying that she was “very glad that the Chinese company, CMEC, won the bid for the project in Hulhumale. I wish it every success.”

According to the government’s Isles project, the units are expected to be completed in two years.

Earlier last week President Nasheed laid the foundation stone for another 350 housing units in Male’, which will be build by Indian developers Kargwal 18 SG.

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Surge in Chinese arrivals just a passing fad, cautions MATI

China has eclipsed the traditional European tourism markets of the Maldives to become the highest contributor of tourist arrivals to the country, but that gain is unlikely to last, says the Maldives Association of Tourism Industry (MATI).

Figures from the Ministry of Tourism indicate that that 15.3 percent of all arrivals this year originated from China – a staggering growth rate of 137 percent compared to the first eight months of 2009.

UK arrivals, traditionally the Maldives’ greatest market, sits at 14.9 percent followed by Italy at 12.6 percent. Average length of stay has dropped to 7.7 days, compared to the same period 8.1 last year.

Secretary General of MATI, Sim Mohamed Ibrahim, told Minivan News that Chinese tourists regarded the Maldives as a “novelty” destination, and that the growth would not last.

“The Chinese can swamp a destination in terms of numbers, but this is not the tourism the Maldives is about. Our product attracts sunseekers – Europeans,” he said.

“The Chinese who come do not come for the sun and the beach – they come because the Maldives is a novelty, a safe destination, and because of their new-found freedom to travel. Resorts are saying there are not many repeat visitors from China.”

Sim said that while it was “a good thing” that the spike in Chinese arrivals had filled in a seasonal gap in the market, Chinese tourists were comparatively low “yield” compared to other markets.

“137 percent growth is huge, but that’s heads-on-beds,” Sim said. This had not “had the impact on yield as much as it should” because of lower-than-average length of stays, uptake of full board packages and a general disinclination among Chinese visitors to spend on resort restaurants, bars and excursions.

“What we’ve seen January to August is that while most traditional markets have grown, except Italy, there hasn’t been much difference in arrivals figures from Jan-August last year. But Germany, France and the UK are all registering growth and picking up.”

Seasonal dips in the Maldives market during warmer months in the northern hemisphere have historically been filled with the arrival of Russians and Japanese, Sim explained.

“he Japanese market is not growing – it used to be a good market but it hasn’t been showing growth, and we need to do more work in Japan,” he said.

Early visitors from Russia used to be among the highest yield tourists, “but they have since become more seasonal like everyone else.”

“South Africa would be a good market for us, but it requires good flight connections, perhaps via Mumbai.”

The Maldives was proving a victim of fashions in the travel industry, Sim noted, particularly in the high-end segment.

“Right now the Seychelles and Mauritius are in fashion. We haven’t done much in terms of destination marketing, and we have lost the buzz we used to have. We have no new products that people can afford, there’s been mismanagement of the local economy, and it’s been hard for the new government to put things back together,” he said.

“Environmental doomsday messages” had not helped attract investors either, he added.

“Hopefully the new budget will have more money for destination marketing.”

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Chinese couple disappear at sea, leaving 13 year old daughter

A Chinese couple holidaying in the Maldives disappeared from their resort on Saturday after they went for a swim, according to the Maldives National Defense Force (MNDF).

The 38 year old woman and 40 year old man were holidaying with their 13 year-old daughter on the Hilton Irufushi Beach and Spa Resort in Noonu Atoll.

Lieutenant Abdulla Jaleel said that MNDF had already searched 102 square miles from air and sea, attempting to locate the lost couple.

“Yesterday we checked near Rehendi Resort, today we started to search near Dhigufaru island,’’ said Jaleel. “We have been unable to discover any sign of them.’’

“On that day, we received a report from a speed boat  travelling in the area that they thought they had seen a woman lying face down on the surface, but when they turned towards the direction of the woman to check, she had vanished,’’ Jaleel said. “MNDF Nothern Area coast guard immediately went to the area, but there was no sign of them.’’

Daily newspaper Haveeru reported that the couple and their daughter went to the beach and that their daughter walked around the beach collecting shells while her mother and father were swimming. When she came back she noticed her parents were missing.

Jaleel said that the missing couple’s daugter was now under observation at Irufushi resort.

The resort issued a statement today saying it had immediately launched its emergency search and rescue plan, and contacted the MNDF Coast Guard.

“The hotel is assisting the authorities and all efforts are being made to locate the guests. The well being, safety and security of our guests are of paramount importance and the Hilton Maldives / Iru Fushi Resort & Spa continues to make every effort to ensure that all practises and standards are in line with strict safety and security regulations,” the resort said.

On February 27, a 69 year old German tourist died while snorkelling at Embudhu Village Resort in Kaafu Atoll, eight kilometres from Male’.

On March 1, a Chinese tourist died while snorkeling at Chaaya Lagoon Hakurahura Island Resort. Two weeks later on March 14 a second Chinese tourist died at Holiday Inn Kandooma Resort.

Correction: A previous version of article incorrectly stated that a Chinese couple died at Holiday Inn Kandooma Resort on March 14. The male guest died while the female guest was revived.

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New Maldives Museum to be ready for Independence Day: Minister Dr. Sawad

Maldives new museum in Male will be inaugurated on Independence Day 26 July, says the minister of Tourism, Arts and Culture, Dr Ahmed Ali Sawad., according to Miadhu Daily.

The new museum has been donated by the Chinese government, and Dr. Sawad says that work to transfer artifacts from the old museum is underway. A task force including officials from the President’s Office, Foreign Affairs Ministry, Tourism Ministry, Environment Ministry and the MNDF is taking part in the transfer. The new building is still under construction and some difficulties have arisen during the transfer process, says Ali Waheed, who is in charge of the taskforce.

Sultans Park would become the museum park, says Dr. Sawad who confirmed that the Chinese government would assist in that development.

“The Chinese government and the Tourism ministry are working to train staff at the museum, with added assistance from a Singaporean NGO,” Dr. Sawad said.

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National Security Committee meeting on Gitmo detainees postponed

Today’s National Security Committee meeting regarding the transfer of Guantánamo Bay inmates to the Maldives has been rescheduled, after Speaker of Parliament Abdulla Shahid requested to cancel it.

The meeting has been postponed for next week, after a call from Shahid to the Chairman of the committee and leader of the People’s Alliance (PA), Abdulla Yameen.

He wanted to postpone the meeting until Parliament reconvenes in June and all committee members are back from leave.

Yameen said the meeting “was cancelled by the speaker,” and has been rescheduled for next Sunday. He said although he was not sure if all members of the committee would be present at the meeting, “we will have quorum.”

He did not want to comment on the issue of the detainees “as of yet.”

Independent MP for Kulhudhuffushi-South, Mohamed Nasheed, said “when the chair wants to hold a meeting, the speaker has no right to postpone it.”

He said the decision to hold a committee meeting, whether during recess or session, was completely up to the chair of the committee, “and there’s nothing the administration or the speaker’s office can do.”

Nasheed said the Majlis committees were all “very democratic institutions,” and all the powers vested in the chair were provided for in the codes.

“The only people who can object is a majority from the committee itself,” he added.

Nasheed said “the meeting will not be cancelled” and there will be “lots of hearings” with the Foreign Ministry, Police, and the Attorney General, among others.

He said the situation will be verified, details asked for and documents submitted on the matter.

“The committee will then make an assessment and then report to the Majlis.”

Dhivehi Rayyithunge Party (DRP) MP Ahmed Nihan said Yameen had decided “all the party should be present,” and added “the Parliament should be involved” in deciding upon the issue of the detainees.

He said it was important the meeting was held with “the inclusiveness of all [11] members,” and should be postponed until all members returned from leave.

“If anything happens to Maldives, we should all be concerned about this.”

Price per head

MP Nasheed said he was “not in favour of the meeting going in a particular way,” but he believes it is “a serious issue” where law and policy must be looked at carefully.

He said the government was trying to paint the detainees as “innocent and helpless Muslims,” but, he asked, “if they don’t want them in the jurisdiction of the US, why keep them in a third country?”

Nasheed argued that the detainees’ fundamental freedoms were still being encroached on. “Their movements are still controlled. Why do all these things?”

He said although the “government’s spin” was that they were innocent, he noted that Bermuda’s government was paid US$9 million per head for each Guantánamo detainee they settled in their country.

“They ought not get into this deal just for the money,” Nasheed said, adding that there were children in Vilingili orphanage who needed families, money and staff to look after them. “Why take in Chinese or Palestinians?”

“If they’re innocent, free them,” he said. “But the government is saying they are not even capable of committing a crime. This is absurd.”

He noted the government had initially tried to transfer two Chinese nationals who had been detained at Guantánamo, until a Chinese delegation came to the Maldives protesting that the two men were terrorists.

He said the government withdrew its intention to resettle the two men “only after China issued a press release.”

Precedent

The small South Pacific island nation of Palau, a former US territory until 1994, agreed to take in 17 Muslims from China last June, according to The Times (UK).

The men, from the Xinjiang area in China’s north-west, belong to the Uighur ethnicity.

They claim to have been persecuted for decades under Beijing’s rule, and fled to neighbouring Pakistan.

They were taken to Guantánamo on the basis that they had received a small-arms training, which they claim was to defend themselves from China.

China has repeatedly asked the US government to send the men back to China, claiming they are terrorists, but their plea has met with harsh opposition. The US fears they will be killed or tortured if sent home.

China has also asked many other countries not to take the men in, leaving Palau as the sole country on the list of volunteers to resettle the Uighurs.

They were found innocent in 2004, but remained in Guantánamo until Palau’s government agreed to take them in. Palau is one of the few countries that does not recognise China, but maintains diplomatic relations with Tibet.

Additionally, the US gave Palau US$200 million in “development and budget” aid, but the White House has denied the money is tied to the transfer of the detainees. The Pentagon, on the other hand, has called it a “pay-off.”

Correction: When stating that US$9 million was paid per detainee, MP Nasheed was referring to the case in Palau, although the government of Bermuda also accepted four Uighurs from Guantánamo Bay. Whether Bermuda’s government accepted money from the US was not made public.

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China donates over US$20 million in financial assistance

The Chinese government has made two generous donations to the Maldives in the past week, adding to over US$20 million in aid.

Press Secretary for the President’s Office, Mohamed Zuhair, confirmed the Chinese government has granted 50 million Chinese Yuan (US$20 million) in aid plus US$20,000 to go directly to Kudakudhige Hiya children’s home in Vilingili.

The shelter has been experiencing staff shortages recently due to financial difficulties.

Zuhair said the bulk of the money would be allocated towards helping the Maldives “overcome the challenges of the global economic recession,” specifically in infrastructure, sewerage and utilities, roads and climate change adaptation.

He noted the money had not been officially allocated yet and would be looked into shortly.

Deputy Minister of Foreign Affairs, Ahmed Naseem, said the money had not yet been officially granted and it was “premature to talk about it” until the final figures came from the Chinese government.

Spokesman Mr Lieu at the Chinese embassy to the Maldives in Colombo confirmed the figure of 50 million Chinese Yuan and added, “the Chinese government has tried its best to help its friend.”

The Chinese government also assisted with the construction of the Ministry of Foreign Affairs and with the National Museum, which is still under construction.

The money for the Vilingili orphanage was announced by Honourary Consul to the Maldives in Shanghai, Yang Guisheng. The donation was received by First Lady Laila Ali while on an official trip to China last week.

The first lady thanked Guisheng for the generous donation and said the assistance was much needed for a centre like Kudakudhige Hiya.

Deputy Minister of Health and Family Mariya Ali said the funds ”will really help” the centre, and will be prioritised towards “enforcing security in the building.”

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