Tag: china

US$6 green tax to be introduced from November 2015, says tourism minister

The new green tax for tourists will be introduced from November 2015 at a rate of US$6 per bed per night, Minister of Tourism Ahmed Adeeb has revealed.

Speaking at a press conference held by the cabinet’s Economic Council today, Abeeb said that guest houses would be exempt from paying the new tax in order to reduce the impact on small and medium businesses.

“Since 2013 the guest house venture has been on the rise. We do not want to hinder the development of these businesses so we have decided to exempt guest houses from paying the tax,” said Adeeb, addressing concerns raised by the opposition Maldivian Democratic Party (MDP) earlier in the day.

The introduction of the new tax is to come 11 months after the abolition of the bed-tax, which will continue to be charged at US$8 a night until the end of this month.

Some resort owners have suggested that the combination of the bed tax with the rise in T-GST to 12 percent this month has affected bookings, though Adeeb today vowed there would be no further increases in T-GST during the government’s current term.

The T-GST rise came after urging from the IMF, which has suggested that the previous rate of 8 percent was low for a tourism industry as profitable as the Maldives’.

Adeeb said today that the council does not believe the green tax will hinder the demand from tourists – especially from Europe – who will become “champions” of the Maldivian environment by paying the tax.

2013 saw a record 1.3 million tourists spend just over  7 million bed nights in the country, although the country’s macro economic stability has remained a concern.

The tourism minister has previously said that revenue generated from the new levy would be spent on resolving the waste management issues in the greater Malé region – an issue made more pressing with the Economic Council’s recent termination of the Tatwa waste management contract.

Adeeb also revealed the council’s plans to remove import duty on construction material needed for the refurbishment of resorts, thereby stimulating resort development which he said would provide numerous employment opportunities for the youth.

President Abdulla Yameen last week announced that five new resorts would begin construction in 2015 in the northern atoll of Haa Dhaalu, which currently has none in operation.

Also speaking at the press conference, Minister at the President’s Office Mohamed Hussain Shareef said  the government was seeking to begin the re-development of Ibrahim Nasir International Airport midway through next year.

“Beijing Urban Group and Maldives Airports Corporation Limited has finished the drawings of the airport and are in the process of submitting the proposal to China’s Exim bank in order to finance the project,” explained Shareef.

Shareef also re-iterated the government’s plans to start work on the proposed Malé-Hulhulé bridge in the year 2015, before opening the bridge in 2017.

“The bridge survey team is almost done with the feasibility study and it will be submitting its reports to the Chinese Government who will then finance the bridge through grant-aid and low interest loans,” said Shareef.

Agreements to develop the INIA and to promote the Malé-Hulhulé bridge were signed during Chinese President Xi Jinping’s visit to the Maldives as part of his South-Asian tour in September.

During his visit, President Xi also officially requested that the Maldives participate in China’s 21st Century Maritime Silk Route, before journeying to India as part of his tour of the region.

Shareef concluded the press conference by commenting on what the governing Progressive Party of Maldives has described as attempts by the opposition to spread misinformation regarding comments made by the foreign minister on Sino-Indian discussions about the silk road project.

After Dunya Maumoon’s comments to the Majlis last week appeared to suggest that Indian had discussed joining the project with President Xi, the Indian government released a statement strongly denying such talks had occurred.

Shareef warned the MDP – which has today announced its intention to table a no-confidence motion against the foreign minister – that it would have to answer to the international community which had been informed of its attempts to sow discord.

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PPM responds to foreign minister silk route controversy

The Progressive Party of Maldives (PPM) has responded to the Maldives Democratic Party’s (MDP) criticism of foreign minister Dunya Maumoon’s remarks regarding India’s participation in China’s Maritime Silk Road initiative.

In a media statement released today, the PPM accused the opposition of twisting the story in order to harness attention from the international community.

The party also alleged that MDP is trying to divert attention from the party’s achievements during its third anniversary and from the one year anniversary of President Abdulla Yameen’s term.

MDP condemned Dunya for “intentionally” providing false information about the Chinese project when questioned by the parliament Maldives involvement in the project.

When asked about the potential impact of the scheme on India-Maldives relations, Dunya told the parliament last week that India had also discussed participating during the recent state visit of Chinese President Xi Jinpeng.

However, Indian Diplomats in Malé promptly refuted the claim, releasing a statement containing comments from the Indian External Affairs Ministry which denied such talks having taken place.

Meanwhile, the Ministry of Foreign Affairs released a statement today seeking to clarify any confusion caused by these remarks, saying that Dunya had “noted her concern if her choice of words had led to any confusion”.

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MDP slams foreign minister for giving false information regarding Chinese silk route

The Maldivian Democratic Party (MDP) has criticised the foreign minister for providing false information while responding to questions put forward in the Majlis regarding the Maldives’ participation in China’s Maritime Silk Road initiative.

“The party severely condemns foreign minister Dunya Maumoon for intentionally providing false information about Maldives and its diplomatic relations with other countries,” read an MDP press statement released yesterday (November 8).

President of the People’s Republic of China Xi Jingping has called on the Maldives “to get actively involved” in the creation of a maritime trade route linking China to the east coast of Africa and the Mediterranean.

The Ministry of Foreign Affairs has today released a statement seeking to clarify any confusion caused by these remarks, saying that Dunya had “noted her concern if her choice of words had led to any confusion”.

When asked about the potential impact of the scheme on India-Maldives relations, Dunya told the parliament last week that India had also discussed participating during the recent state visit of Chinese President Xi Jinpeng.

However, Indian Diplomats in Malé promptly refuted the claim, releasing a statement containing comments from the Indian External Affairs Ministry which denied such talks having taken place.

“[T]his matter was neither raised, nor discussed, nor is it reflected in any of the outcomes of the visit of President Xi Jinping to India,” the ministry official told Indian media on Thursday (November 6).

The Maldives foreign ministry today said that Dunya had mentioned various discussions having taken place between India and China “on a wide range of issues” as an example of the excellent relations between the two nations.

The MDP also noted that it was “shameful” that the Indian Government had to re-clarify the public after “lies” from the foreign minister, and warned the government that such actions will weaken Maldives’ relations with other countries.

Fears have been expressed by the opposition regarding the potential for the government’s willingness to participate in the scheme to damage relations with regional neighbours.

The party also called for the resignation of Dunya, stating that intentionally providing false information to the parliament was a crime under the Maldivian Constitution.

The Chinese president travelled to India after having visited the Maldives where numerous MoUs were signed between the two governments – most notably agreements promoting the Malé-Hulhulé bridge and the redevelopment of Ibrahim Nasir International Airport (INIA).

The new INIA agreement comes while previous developer, India’s GMR, waits to hear how much they are to receive in damages after a Singapore arbitration court ruled their prematurely terminated contract with the Government of Maldives to have been “valid and binding”.

As Chinese companies pledge assistance with major infrastructure projects, Indian companies continue to fall foul of the Maldives’ changing political currents.

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

*This article was amended shortly after publication to include an additional statement from the Ministry of Foreign Affairs

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China gifts 200 waste bins to environment ministry

The Chinese government today gifted 200 waste bins worth MVR500,000 (US$32,425) to the Maldivian government, during a ceremony held at the Ministry of Environment and Energy.

Deputy Head of Commission at the Chinese Embassy in Maldives, Mr Liu Ching signed the contract on behalf of the Chinese government, while Deputy Minister of Environment and Energy Ali Amir signed for the Maldives.

Mr Liu highlighted the importance of keeping the environment clean and safe for the many tourists visiting the Maldives – of which around a third now come from China.

Malé City Council introduced litter bins to the capital for the first time this year, placing 200 around the city as part of new waste management regulations which impose a MVR100 (US$6.5) fine for littering.

Liu today said that he was keen to sustain the relationship between the two nations, whose bilateral ties have been expanding rapidly over the past two years.

As well as a steady stream of grant aid, the Chinese and Maldivian governments have penned deals regarding military aid and the development of Ibrahim Nasir International Airport.

As well as urging the Maldives to become part of its New Silk Road initiative, the Chinese government has promised to “favorably consider” financing the ambitious Malé-Hulhulé bridge project.

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Tourist arrivals register 10 percent growth in three quarters of 2014

Tourist arrivals in the first three quarters of 2014 registered a 10.1 percent growth compared to the same period last year, reaching a total of 901,004 guests by the end of September, the Ministry of Tourism has revealed.

Visitors from Asia and Pacific countries accounted for 50 percent of all arrivals during the first nine months of the year.

However, the ministry noted in a statement last week that “the pace at which arrival from the region was increasing have slowed down since June.”

“While the region enjoyed a robust growth of 22.3 percent at the end of first two quarters of 2014, growth rate slowed down to 17.3 percent by the end of the third quarter of 2014,” the ministry explained.

“The region injected 53,454 tourists to the total arrivals to the country during the month of September, summing up the total arrivals from the region to 450,296 by the end of the period from January to September 2014.”

China (31.8 percent), India (3.5 percent), Japan (3.1 percent) and South Korea (2.7 percent) were the leading markets from Asia and the Pacific region, the ministry revealed, with Australia (1.6 percent) “emerging as a potential market from this region.”

“The Chinese market, registered a negative growth (-1.7 percent) for the first time in September 2014 since becoming the number one market in 2010. However, the market ended up with a healthy 14.8 percent growth at the end of the period from January to September 2014 with a total of 286,838 tourists.”

Tourist arrivals from Europe meanwhile increased 1.6 percent in the first three quarters compared to the same period in 2013, reaching 386,914 visitors.

“In terms of individual markets from Europe, leading markets were Germany (7.7 percent), the United Kingdom (7.4 percent), Russia (5.7 percent), Italy (4.8 percent) and France (4.2 percent),” the ministry revealed.

Arrivals from the Americas registered a strong growth of 25.2 percent in September with double digit growth rates recorded from all major markets in the region.

“With just a couple of hundred tourists less than that of Americas, Middle East followed closely behind bringing in a total of 28,641 tourists at the end of the period from January to September 2014 accounting for 3.2 percent of all arrivals during the period,” the ministry noted.

“This region also posted a heavy growth of 20.5 percent during the month of September 2014 ending the period with a robust 16.9 percent growth.”

Meanwhile, one new resort – Loama Resort Maldives on the island of Maamigili in Raa Atoll – and seven new guest houses opened during September.

“With these new additions, the total number of registered establishments reached 488 with 30,893 beds at the end of September 2014,” the ministry noted.

“While the total number of registered resorts increased to 112 with 23,917 beds and guest houses increased to 195 with 2,723 beds, number of hotels and safari vessels remained at 18 and 163 with 1,542 beds and 2,711 beds respectively by the end of September 2014. At the end of this period on average there were 292 establishment with 26,905 beds in operation.”

Statistics show that total bednights during the period was 5.4 million, with an average occupancy rate of 74.6 percent – an increase of 1.6 percent compared with the same period in 2013. Average duration of stay remained steady throughout the January to September period.

Quarterly economic bulletin

The Maldives Monetary Authority’s (MMA) quarterly economic bulletin released last week meanwhile observed that the “favourable growth in the tourism industry during the year suggests that the arrival of a million tourists during one calendar year is likely to be achieved in 2014 as well.”

“Reflecting the growth in bed nights, total tourism receipts grew by an annual 12 percent during the first six months of 2014 and totalled US$1.3 billion,” the central bank revealed.

While the market share of Europe fell from 51 percent in the first half of 2013 to 47 percent in the same period this year, the MMA noted that arrivals from Germany and the UK increased.

“In particular, the sustained growth of arrivals from UK, with a market share equivalent to 8 percent, reflects its economic revival to pre-crisis levels,” the bulletin suggested.

“Other markets in Europe, however, indicated sluggish or negative growth in tourist arrivals, contributing to the overall marginal increase in arrivals from Europe.”

The MMA also observed that in the past five years “the development of guesthouses as a low cost accommodation option for tourists in local inhabited islands has gained significant momentum.”

The authority noted that the number of guest houses in the industry is now over 2,400

“As at the end of June 2014, the number of registered beds in the [guest house] industry is recorded to be over 2,400. While the bed capacity of guesthouses accounted for a mere 2 percent of the bed capacity of the industry as a whole in 2010, it has now come to represent 8 percent of the total bed capacity in tourism establishments,” the bulletin stated.

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China to “favorably consider” financing Malé-Hulhulé bridge if project proves feasible

China will “favorably consider” providing financial support to the construction of Malé – Hulhulé bridge project, if the venture proves feasible, the Embassy of China has said.

Speaking at a brief press conference at the President’s Office, Charge d’affaires ad interim of China Embassy Mr Liu Qiang revealed details of the MOU signed between China President Xi Jingping and President Yameen Abdulla in September.

He also explained that a Chinese survey team will complete a preliminary feasibility study of the project within 40 days.

The preliminary study will be followed by a project feasibility study. Afterwards, a design plan will be determined and the two governments will explore options to finance the project.

The arrival of the preliminary feasibility study “shows that the Chinese government attaches great attention both to this project and to the friendly and cooperative relations between China and the Maldives,” said Qiang.

President Xi has previously expressed his hope that the bridge would be named the ‘China-Maldives Friendship Bridge’.

“If this is possible engineering-wise, and if nature allows it, we will do it,” Fisheries Minister Dr Mohamed Shainee said today.

The construction of a bridge was first announced during former President Maumoon Abdul Gayoom’s reelection campaign in 2008. President Mohamed Nasheed also pledged to link Malé to its suburb islands – Hulhumalé, Hulhulé, Villingili, and Gulhifalhu – via a bridge.

A 2011 feasibility study carried out by Ove Arup and Partners Hong Kong explored three options to link Malé and Hulhulé, through Funadhoo Island on the north, or through two different paths on the southeastern side of Malé over the surf point to the edge of the runway on Hulhulé.

The study said a floating bridge would be possible via Funadhoo and a fixed bridge may be possible via Malé’s Raalhugandu area.

The cost of the bridge may run between US$ 70 and 100 million, the study added. Tourism Minister Ahmed Adeeb revealed last week that the current survey – said to cost $3-4 million – will be covered through Chinese aid, of which 100 million Yuan (around MVR250 million or US$16 million) was pledged in August.

The following month President Xi became the first Chinese head of state to visit the Maldives, signing various MoUs as well as a preliminary contract agreement on the development of Ibrahim Nasir International Airport.

During the historic visit, President Yameen told his counterpart that he hoped to increase the number of Chinese visitors threefold before the end of his term. Chinese tourists already represents around one third of the market share.

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Survey team for Malé-Hulhulé bridge arrives in Maldives

A Chinese survey team arrived in the Maldives today (October 25) to conduct a detailed survey for the Malé-Hulhulé  bridge project.

The team which was due to arrive on Thursday (October 23) and start the survey work yesterday is now believed to be starting work on the technical survey in the coming week.

The survey will determine the pier points for the proposed bridge which will link the capital island Malé with the airport island of Hulhulé.

Tourism Minister and Economic Council Co-Chair Ahmed Adeeb told Haveeru last week that the survey is to be completed in the time frame of four months and is conducted with the aid of the Chinese government amounting to US$4 Million.

Adeeb also said that the construction of the bridge, which Chinese President Xi Jinpeng has suggested be called the ‘China-Maldives friendship bridge’, is scheduled to start next year with aims of completion by 2017.

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Bridge survey to start on Friday, says Adeeb

A surveys for the Malé-Hulhulé bridge project will begin on Friday, Tourism Minister Ahmed Adeeb has revealed.

After signing an MoU regarding promotion of the ‘mega project’ during the visit of Chinese President Xi Jinpeng last month, a team from China will arrive on Thursday to carry out the survey.

“After that, we will obtain the required finance for project and start practical work on the bridge,” said Adeeb, also Chair of the cabinet’s Economic Council.

“I see the survey starting within one month from signing of Memorandum of Understanding with Chinese government as a huge victory,”  he told Haveeru.

The survey will determine the pier points for the proposed bridge which will link the capital island Malé with the airport island of Hulhulé.

The project has been mooted by successive governments, with previous plans considering a bridge connecting the airport island with the Rahlugandhu area on the south-eastern corner of Malé, the artificial beach area, or the northen harbour via Funadhoo island.

Local media have confirmed that Chinese aid will cover the expense of the survey – reported to cost $3-4 million.

The government has insisted that the project can be completed within two years, with the Ministry of Economic Development suggesting it will help to ease urban congestion in the capital island – one of the most densely populated in the world.

President Abdulla Yameen confirmed that China had pledged to support the bridge project during his official state visit in August, promising a feasibility study before the end of the year.

During the historic visit of President Jinpeng last month – the first by a Chinese head of state to the Maldives, the leader suggested the finished project might be named the ‘China-Maldives Friendship Bridge’.

Diplomatic ties between the two nations have grown in the wake of the large numbers of Chinese tourists visiting the Maldives – now thirty percent of total arrivals.

While visiting the Maldives, President Xi reiterated his calls for the Maldives to become involved in the creation of a 21st century maritime silk road linking China to the east coast of Africa and the Mediterranean.

Chinese news agency Xinhua reported yesterday that China’s maritime ‘Silk Route’ would pass through the Ihavandhippolhu Integrated Development Project – or ‘iHavan’ – in the northernmost atoll in the Maldives.

An preliminary contract agreement on the development of Ibrahim Nasir International Airport – based on Hulhulé island – was also signed between the two nations during September’s visit.

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MMPRC to further boost Chinese visitors with tourism roadshow

The Maldives Marketing and PR Corporation (MMPRC) has today launched a three-city tour of China in an effort to further boost the number of Chinese tourists.

Taking in Chongqing, Chengdu, and Guangzhou over the next five days, twelve industry groups will also take part in the roadshow

“This road show is the perfect platform to establish a more extensive contact with the China travel trade,” read an MMPRC press release today.

“It is also an opportunity for the Chinese market to be educated on Maldives, its serene beauty and the delicate surroundings.”

After becoming the market leader in terms of visitors to the Maldives in 2011, Chinese visitors now represent nearly one third of all arrivals, totalling 331,000 in 2013.

“Maldives is now positioned to seize the market opportunity created by China’s increasing demand for luxury outbound travel. Hence, this is a great opportunity to promote the destination and to continue to strengthen the image of Maldives in the Chinese Market,” said the MMPRC.

The rapid growth in tourist arrivals has preceded a strengthening of diplomatic relations, with Xi Jinpeng becoming the first Chinese head of state to visit the Maldives last month.

Among a number of MoUs signed during the visit was an agreement to introduce mechanisms to deal with the issue of safety and security of Chinese tourists in the Maldives.

While a Chinese national died last month following a motorcycle accident in the capital Malé, the most common cause of injuries and fatalities among Chinese visitors are related to water sports.

Responding to anecdotal reports of Chinese visitors’ eating habits while visiting the Maldives, Jinpeng was said to have called upon his countrymen to “eat less instant noodles and more local seafood”.

The Maldives’ President Abdulla Yameen expressed his hope that Chinese arrivals would increase three-fold over the next four years.

“Hosting this road show will result in continuous boost in arrivals from China in the years to come,” said the MMPRC today.

The MMPRC conducted a similar event in China in 2012, while a similar event was carried out by the MMPRC in Australia last May in an attempt to break
into the relatively untouched Australian market.

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