Tag: guesthouse

Foreign investments worth MVR9.8 billion expected in five years, says President Yameen

A total of MVR9.8 billion (US$635.5 million) has been pledged to the Maldives by 24 foreign investments registered so far, President Abdulla Yameen said in his presidential address today.

In the address delivered at the opening of the People’s Majlis’ first session of 2015, Yameen said the 24 foreign investments registered under his administration were not tourism-related.

“Under these investments, a total of MVR9.8 billion has been proposed to be invested in the Maldives during the next five years,” Yameen said over loud protests from opposition MPs calling for the release of former President Mohamed Nasheed.

The pledged foreign investments represent a 70 percent increase on the previous year, Yameen added.

President Yameen’s second presidential address was delivered amidst an ongoing political crisis sparked by the arrests and prosecution of former Defence Minister Colonel (Retired) Mohamed Nazim and former President Mohamed Nasheed on charges of terrorism.

The newly formed Maldivian Democratic Party-Jumhooree Party (MDP-JP) alliance held a massive protest march in the capital last Friday (February 27) demanding the pair’s immediate release.

During last year’s budget debate, opposition MPs expressed skepticism of the government’s forecast of US$100 million expected as acquisition fees for Special Economic Zones (SEZ) by August 2015. The opposition has also criticised the lack of significant foreign investments despite assurances by President Yameen’s administration with the passage of the SEZ Act last year.

2014

Yameen began the address by assuring MPs that the current government would protect and uphold the constitution, adding that significant efforts were made during 2014 to “strengthen the civil justice justice and criminal justice system of the Maldives”.

Legislation on civil trial procedures would be submitted to parliament this year, Yameen said.

A ‘risk management framework’ to combat drug smuggling and abuse would also implemented during 2015, he continued, and privately operated rehabilitation centres would be opened with modern facilities.

While a bill on establishing an Islamic University has been submitted to parliament, Yameen said eight new government-funded mosques would be built during the year in addition to 10 new mosques funded by Saudi Arabia.

“Seven island harbours were constructed last year. And work is underway on constructing harbours on 32 islands. Additionally, land reclamation has been completed on four islands. And while land reclamation is ongoing in three islands, coastal protection work is ongoing in three islands,” he said.

Moreover, road construction projects have been contracted for 10 islands, Yameen said.

A project awarded to the Malé Water and Sewerage Company (MWSC) to resolve flooding in the capital was nearly complete, he continued, whilst US$100 million worth of foreign loans have been secured to provide safe drinking water and establish sewerage systems in inhabited islands.

Construction of 1,089 flats in Hulhumalé have now been completed, Yameen said, and work on a further 5,000 flats would begin this year.

Reclamation of 227 hectares of land in Hulhumalé would also be completed in March, he said.

A waste management project targeting four northern atolls is meanwhile expected to be completed during the year, Yameen added.

While a fishermen’s marina was established in Felivaru last year, Yameen said three more marinas would be set up in Kooddoo, Hulhumalé, and Addu City Feydhoo.

On the education sector, Yameen said a diploma certificate has been set as the minimum qualification for teachers and a new salary structure has been put in place.

The government’s health insurance scheme ‘Aasandha’ has been expanded to cover chronic illnesses and kidney transplants, he continued, whilst a programme was launched in November to provide “super-specialist” doctor’s service to the atolls.

Legislation is currently before parliament to protect women’s rights in divorce cases, Yameen said, which would provide temporary shelter to divorced women and establish rules for equitable division of property.

Moreover, the government is formulating rules to provide easy access to healthcare and prioritise employment for persons with special needs, he said.

Loans worth MVR200 million (US$12.9 million) would be issued in the near future under the ‘Get Set’ programme for youth entrepreneurs, he continued, and a bill on youth rights would be submitted to parliament this year.

Work was underway on building 36 sports pitches in islands with populations exceeding 2,000 people, he noted.

Economy

Yameen noted that the forecast for economic growth in 2015 was 10.5 percent, up from 8.5 percent last year, adding that in 2014 inflation was kept on average at 2.4 percent and the budget deficit brought down to MVR1.6 billion (US$103.7 million).

In a bid to encourage lending, Yameen said the minimum reserve requirement for banks would be reduced this year from 20 percent at present.

The forecast for the current account deficit in 2015 is US$214.7 million or 6 percent of GDP, he added, down from US$290 million or 10% of GDP last year.

“As a result of the increase in foreign currency the Maldives earned in 2014, serious difficulties faced by the public in obtaining dollars have been resolved, and with God’s will, the dollar shortage has been alleviated,” he said.

Referring to a decline in tourist arrivals from Russia and China in December and January, Yameen said the government has launched efforts to increase arrivals from both source markets.

“Despite the Maldives being seen as a high-end tourist destination, efforts are now underway to advertise the Maldives as an affordable luxury destination, expand the Maldivian guesthouse business, and expand the tourism industry to target mid-market [tourists] as well,” he added.

Yameen also said the government was taking back uninhabited islands leased for resort development due to contractual violations.

In the wake of former coalition partner JP’s alliance with the opposition MDP, the government seized several properties leased to JP Leader Gasim Ibrahim’s Villa Group for alleged agreement violations. Last week, the Maldives Inland Revenue Authority (MIRA) gave a 30-day notice to Villa Group to pay US$100 million allegedly owed as unpaid rent and fines.

In 2015, Yameen said 22 islands would be leased for resort development both under normal bidding processes and as joint ventures.

Yameen added that development in the SEZs would create new jobs and spur economic growth as the minimum threshold for investments was US$150 million.

The government was in the process of formulating a master plan for the ‘iHavan’ project, Yameen said, which was among the mega projects envisioned in the SEZs.

A basic design for a new terminal at the Ibrahim Nasir International Airport (INIA) has been completed, he continued, and the government was seeking interested parties to repair and resurface the airport’s runway.

Foreign policy

Yameen said the Maldives achieved significant successes during 2014. The “Maldives’ name shined in the outside world” last year, he said.

The Maldives assumed the chairs of both the Association of Small Island States (AOSIS) and World Health Organisation’s (WHO) executive board, Yameen noted.

Relationships with regional neighbours and Arab-Islamic nations were “brought back to its previous heights,” he continued.

In addition to state visits to friendly nations, Yameen said various agreements that would prove beneficial to the Maldives have been signed with India, Sri Lanka, China, and Japan.

Yameen also appealed for the participation of all Maldivian citizens in celebrating the country’s 50th independence day in July.

“God willing, this year will see new progress made in fulfilling the government’s pledges to the people,” he said.

Related to this story

Tourist arrivals decline in January as Chinese arrivals slow down

Parliament approves state budget for 2015 with 60 votes in favour

PPM celebrates SEZ bill with fireworks


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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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Introducing rival seaplane operators vital for tourism: MATATO

The Maldives Association for Travel Agents and Tour Operators (MATATO) feels it is imperative that competition be introduced to the country’s seaplane industry to assuage fears that the resulting monopoly has negatively hit tourism.

MATATO President Mohamed Khaleel has alleged that the sale of both Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) to US-based private equity fund Blackstone in February of this year has already led to increased prices for guests and tour operators.

“We need to find a competitor to [Blackstone],” said Khaleel.

The merged company now operates under the TMA brand.

Several major hospitality groups operating in the country wrote to the Maldives Association of Tourism Industry (MATI) in August claiming their “worst fears” were being realised regarding the monopoly on the country’s seaplane services.

“You are of course aware that ‘The Blackstone Group’s’ recent entry into the market has had the effect of eliminating competition and creating a monopoly in the charter seaplane market in the Maldives,” wrote the CEO of a major multinational operating in the Maldives.

“We were concerned from the outset about the potential disruptions this could cause in the market and have been monitoring the situation closely.”

In the letter, the company said it was particularly concerned at several contractual points it alleged were being “forced” upon operators by TMA as a result of the seaplane monopoly.

At time of press, Minivan News was awaiting a response from both Tourism Minister Ahmed Adheeb and TMA  to the allegations raised in the letter.

MATATO concerns

Aside from the impact of the increased costs being passed on to travel agents and consumers, MATATO President Khaleel alleged operators had not been receiving the same levels of support from the seaplane operator under Blackstone in order to promote the industry.

“For instance, we try to run [familiarisation] trips for journalists as part of promotion efforts for the country as a destination, every year in the past we used to get complimentary seaplane services [for promotional purposes],” he stated.

Pointing to key developments in the Maldives business sector in recent years, Khaleel said that introducing competition to the country’s communications and telecoms sector had helped lead to positive changes in price and services since the introduction of private competitors.

He expressed confidence that there was sufficient finance and know-how within the local aviation industry to try and establish a new seaplane operator locally.

Khaleel stressed that although the emergence of a growing number of domestic airports across the country was providing alternative transport options to using seaplanes, the best solution would be to encourage competitive pricing in the market by encouraging competing operators.

“There are multiple people around who can afford this to try and establish fair competition,” he added.

Blackstone “treated us well”: guesthouse operator

Meanwhile, one small hospitality group providing guesthouse accommodation in Noonu Atoll, which has recently renewed an agreement for seaplane services, confirmed it had faced successive rise in costs for the use of seaplane services over the last 12 months for a one way journey from the capital.

A one way seaplane flight to Noonu Atoll per traveller earlier this year rose to US$300 from US$260. The cost per head recently rose again to US$375 under its latest agreement signed within the last month, the operator added.

According to the guesthouse manager, the increased rates had not drastically impacted upon its operations as the property had worked with a specialist European tour operator to bring in groups of travellers – the costs therefore being absorbed into a wider package rate.

Outside of costs, the operator stressed that transport – particularly for the country’s fledgling independent travel market – was a “big issue” for their guesthouse, with the prospect of being priced out of using seaplanes potentially creating long-term difficulties for business.

“We were hoping that they would not raise the seaplane rates too much, and they didn’t,” the guesthouse manager added. “We would have otherwise had to use a recently opened domestic airport nearby, but this would be such a hassle requiring hiring a speedboat for further transportation. [The seaplane] is easy, smooth and elegant for us.”

The operator stressed that, owing to the costs already associated with using seaplanes compared to other forms of transport, its guests usually only took a one-way flight to the property itself with alternative transport arranged by sea as part of the experience.

The guesthouse manager added that seaplanes also gave an additional exotic appeal to the country as a destination, describing one tour operator as being “astonished” after their maiden flight across the country’s skies using the services.

This appeal, the operator argued, was a major additional selling point of the current package offered to guests visiting the Maldives.

“A monopoly makes it much tougher to do business, so in the long-run, I would say it could be a bit scary for the industry,” the manager stated.

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Maldives entrepreneurs braving “culture war” to pursue guesthouse growth, AFP reports

The full story can be read here on Minivan News’ spin-off travel website Dhonisaurus.

“Most visitors arrive at the country’s airport island, take a speed boat or seaplane to their expensive coral-fringed private resort and spend the next week relaxing in blissful ignorance of the country around them,” writes Agence France-Presse (AFP) journalist Adam Plowright.

“It has been this way for decades, the result of a deliberate policy of keeping wealthy vacationers — mostly Westerners and often newlyweds — on uninhabited islands separate from the local Muslim population.”

The potential nonetheless for expanding mid-market tourism in the Maldives through the “niche” guesthouse segment emerged as an early election issue in May after senior opposition and government figures clashed over how best the country’s inhabited islands might profit from visitors.

Plowright himself observed that despite the Maldives’ reputation as one of the world’s most exclusive holiday destinations, the opening of guesthouses across the country over the last five years has appeared to upset some religious conservatives in the country.

Under the country’s laws, traditional holiday staples such as the sale and consumption of alcohol and pork products, and women publicly sunbathing in bikinis are outlawed unless on designated ‘uninhabited’ islands set aside exclusively for resort developments.

Plowright added that with the local Maldivian potentially facing public flogging should they be convicted on charges of ‘fornication’, the religious conservative Adhaalath Party had maintained that tourism be kept separate from the country’s inhabited islands.

“If the hippy-type of travellers come, along will come drugs and narcotics which even now our society is suffering from. Things like nudity are not acceptable in a place where people are living. The people complain that they are praying in the mosque and just outside there are tourists in bikinis,” Adhaalath Party Vice President Mauroof Hussain told the AFP.

“While fundamentalist interpretations of Islam imported from the Persian Gulf and Pakistan are progressively taking root in the Maldives, Hussain’s views lie far outside the mainstream and are ridiculed by many,” the AFP claimed.

The Adhaalath Party remains a key supporter  in the upcoming election of Jumhoree Party (JP) presidential candidate and businessman MP Gasim Ibrahim, who operates a number of exclusive island resorts through his Villa Hotels company.

The presidential candidate’s resorts have thrived on supplying married and unmarried guests alike with holiday staples associated with the Maldives; including sun bathing, alcoholic beverages and diving expeditions.

Yet despite the prevalance of exclusive island resorts to tourism growth in the Maldives, efforts over the last half decade to expand guesthouses has led to a “torrent” of entrepreneurs like 25-year-old Ibrahim Mohamed opening tourist properties in an attempt to bring more US dollars directly into the local economy, according to Plowright.

Read more.

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Guesthouse potential thrusts Maldives mid-market tourism into political fray

This story was originally published on travel review site, Dhonisaurus.com

Since the inception of Maldives tourism over 40 years ago, the country has seen the development of more than 100 islands into exclusive resorts which – by focusing on secluded luxury – are almost entirely cut off from local laws and politics.

The potential for expanding mid-market tourism in the Maldives through the “niche” guesthouse segment may emerge as an early election issue after senior opposition and government figures clashed over how best the country’s inhabited islands can profit from visitors.

While the present government has boasted of nearly doubling the number guesthouse business since coming to power in February last year, the country’s opposition unveiled plans to address what it called a “total disconnect” between the lucrative island resort model and local people.

‘Real Maldives’

Beyond the political rhetoric, a growing number of specialist operators have emerged trying to cater to the mid-market demand from tourists looking to experience the ‘real Maldives’ –  a side of the country often unseen due to the prevalence of the lucrative ‘one island, one resort model’.

One such group is Secret Paradise, which this year began offering tourists special packages in North Male’ Atoll and South Male’ Atoll aiming to combine the traditional tourist staples of sunbathing, water sports and diving with authentic Maldives experiences like cooking and eating with local families, or assisting at island schools.

Ruth Franklin, a senior UK business figure who helped develop Secret Paradise with a local partner, said that aside from providing a more authentic travel experience, a key selling point for the business was to provide more affordable holidays for tourists concerned the Maldives was out of their price range.

Franklin added that trying to realise the full potential for mid-market tourism was not without challenges, especially in terms of a tourist’s perception of budget.

“To many travellers, ‘budget’ means a room for US$20 or less a night in many Asian destinations. In the Maldives, budget should be interpreted in relation to the cost of a night on a resort for bed and breakfast. Guesthouses on average start at US$50 verses the cheapest resort at US$250,” she said.

Franklin identified another hurdle in the general lack of information available to tourists about life outside the country’s resorts; from the cost of transportation and the availability of local ferries – which are further limited on Fridays and public holidays – to adhering with local laws and culture on ‘inhabited’ islands. On these islands, drinking alcohol and wearing bikinis are not permitted.

“Our packages are designed to take this into account so that travellers have the option of day visits to resorts, sandbanks and picnic islands where the restrictions do not apply,” Franklin added.

Franklin said that compared to the country’s resort and even safari boat industries, the niche status of guesthouse tourism did grant the segment a unique appeal in the region.

“Independent travel will never be in my opinion as it is in Thailand for example and quite frankly I wouldn’t want it to be. My belief is that local islands should have a set number of tourist beds available that is governed by the Tourism Ministry,” she said.

“Whilst I think it is right to open up the island to tourists to allow travellers to experience local customs and traditions and to help support local economy I would not want to see islands inundated with travellers to the point that the best of the Maldives customs and traditions disappear.”

Franklin suggested that wider success for the guesthouse industry could eventually lead to growing pressure to amend laws relating to alcohol and allowing women to wear bikinis on local beaches as part of a potential trade off for greater economic viability of mid-market tourism.

“Whilst my belief is that alcohol will not and should not be available on local islands there is definitely already a keen interest by guesthouse owners to provide private beach areas for tourists,” she added. “I am not in support of this as I think those guests who stay on a local island should do so to also experience culture and tradition and as ‘guests’ should respect a country’s law and regulations.”

Compromise calls

In December last year, the author of the latest Lonely Planet travel book to focus on the Maldives told Dhonisaurus that compromise would be needed by authorities should they wish to ensure independent travel was viable for a wider number of businesses going forward.

Lonely Planet author Tom Masters said he ultimately believed that local islands could still provide independent travellers with “sufficient attractions”, even within the strictly conservative laws practices outside of the country’s resort islands.

“However, I think only a tiny proportion of potential visitors would be happy to accept such a number of restrictions on their annual holiday, and so if some degree of compromise could be reached on issues such as alcohol or sunbathing, then the number of travellers opting for island tourism over that in an expensive resort would rise enormously,” he said at the time.

“A weakling in need of love and nurturing”

Adrian Neville, a veteran of travel writing in the Maldives previously told Dhonisaurus that beyond the recent political arguments, guest-houses had played a major role in the development of the tourism industry, dating back to their foundation in 1972. However, such 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.

Quality standards

Tourism authorities last year noted that guesthouse demand would likely remain “quite insignificant” when compared to demand for the country’s island resorts.

However, speaking to Minivan News in March this year, Deputy Tourism Mohamed Maleeh Jamal praised the industry as a “phenomenon” that the present administration would look to continue to support.

“The industry is doing well right now in Hulhumale’ [an island situated ten minutes from the capital by speedboat]. I understand major operators are already coming out with their own brochures,” he added.

Despite pledging government support for the industry, Maleeh claimed that it would be vital to ensure that quality standards were maintained across the industry in line with the reputation built up by the Maldives resort industry over the last forty years.

“We don’t want anything unexpected to happen,” he added. With a growing number of domestic airports anticipated to be developed across the country in the coming years, Maleeh said he expected a growing number of guesthouses would be established to meet demand .

“Where there are transports hubs, there will of course be more guesthouses appearing,” he said.

However, Maleeh stressed that the success of mid-market tourism was dependent on making sure that infrastructure was in place to welcome tourists.

“In some of these islands, the infrastructure is just not there; sewerage, drinking water, garbage disposal and 24 hour electricity supplies are needed,” he said. “My main interest is that while any Maldvian can open a guest-housem can we make sure that the customers are there?”

Ahead of presidential elections scheduled for September this year, opposition Maldivian Democratic Party (MDP) candidate Mohamed Nasheed has pledged to promote and support wider guesthouse development as part of efforts to try and aid wider economic growth.

“Having tourists on inhabited islands is not going to result in the community facing any additional detrimental effects that do not already exist. On the contrary, having tourists will empower the islanders to overcome whatever objectionable issues that they may face,” the former president claimed.

“Maldivians will have to open their eyes to outside cultures, and allow for the increase in opportunities for development. In addition to direct employment and income generated by guesthouses, it will also boost other existing island businesses.”

Despite guesthouses seemingly being in vogue as a topic for electioneering, Raki Bench, founder of the guest-houses in Maldives website last year said he was  critical of the role played by the present and former government to develop the industry.

Bench added 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.

“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.”

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Ministers slam Nasheed for “bluffing” over guesthouse commitments

Former President Mohamed Nasheed’s pledge to expand guest house tourism in the country has been strongly criticised by senior government figures, who accuse him of lacking sincerity and “bluffing” over his commitments to mid-market tourism.

State Minister for Finance Abbas Adil Riza and Minister for Tourism Ahmed Adheeb both this week slammed Nasheed, claiming guesthouse bed numbers more than doubled last year after President Dr Mohamed Waheed came to power.

The ministers, who represent the government-aligned Gaumee Ithihaad Party (GIP) and  the Progressive Party of Maldives respectively, also criticised Nasheed over previous remarks he made in international media calling for a boycott of the country’s tourism sector.

However, Nasheed’s Maldivian Democratic Party (MDP) has claimed that after reintroducing the guesthouse concept to the Maldives during its administration, the party’s latest manifesto gave further importance to growing mid-market tourism.  The MDP claims such growth will be vital to tackling what it called a “total disconnect” between the lucrative island resort model and local people.

With the inclusion of development of small and medium businesses – particularly in the emerging guesthouse sector – in a “mini-manifesto” drawn up by the MDP, mid-market tourism has emerged as a key potential issue for elections in September 2013.

Bed numbers

Speaking to Minivan News, Abbas Adil Riza accused Nasheed of lying in regards to his commitments to mid-market tourism development, criticising him for a wider failure to protect small and medium businesses in the country.

“My concern is that Nasheed is bluffing. Between 2009 to 2011, there were 16 new guest houses built,” he said, claiming these properties amounted to some 180 tourism beds.

Abbas said that in 2012 alone, the number of guesthouse beds available to tourists in the country had almost doubled as a result of programs implemented by the Waheed government to provide smaller-scale loans leading to 37 guest houses being developed.

“During Nasheed’s administration, outsiders were given public land and there was no funding supplied,” he said. “After February 7, we gave small-scale loans to 37 individuals.”

Abbas also accused former President Nasheed of failing to support small and medium enterprises and local industry in general.

He added that small and medium scale businesses had to be set up in harmony with local culture and traditions, particularly on small islands.

“He can’t just say that he is the champion of these things,” Abbas added.

Boycott concerns

Traditional holiday staples for large numbers of tourists coming to the Maldives, including being able to wear bikinis and drinking alcohol, are not permitted by law on local islands that are classed as being inhabited.

Speaking to local media, both Abbas and Tourism Minister Adheeb have hit out at claims by the MDP published in international media last year calling for travellers to boycott Maldives tourism.

Adheeb told Sun Online that Nasheed had not made sense by previously calling for the promotion of guest houses in the build up to this year’s presidential election after calling for a boycott last year.

“President Nasheed had made a global call to boycott Maldives tourism, and now he is calling to promote guest house businesses, targeted at Maldives tourism. This does not make sense,” he was quoted as saying.

Nasheed last year called for a tourism boycott of the Maldives, as he continued to question the legitimacy of the government of President Waheeed – his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition MDP.

The Ministry of Tourism last year fell short of its stated aim of welcoming one million visitors to the country during 2012, citing difficulties resulting from media coverage of political turmoil following the change of government that brought President Dr Mohamed Waheed to office.

However, authorities in the country have since pledged to surpass the one million visitor goal in 2013, claiming late last year that the “hard days” were over for tourism in the country following 2012′s political turmoil.

Despite this stance, as part of a so-called silent protest at this year’s ITB event, anti-government campaigners distributed leaflets entitled ‘the cloudy side of life‘ – a play on the country’s official ‘Sunny Side of Life’ tourism slogan to draw attention to alleged human rights violations under the new government.

“Paradigm shift”

MDP MP and Spokesperson Hamid Abdul Ghafoor responded that Nasheed’s government had sought to reintroduce and expand guest houses in the Maldives – a development the party claimed was needed to bring a “paradigm shift” in general thinking and economic development in the Maldives.

After 40 years of concentrating primarily on exclusive island-based resort tourism, Hamid accused former President Maumoon Abdul Gayoom during his 30 years of power of creating a “total disconnect” between local people and the country’s famous high-end tourism product.

“They local people Islamic rhetoric while talking something very different to tourists,” he claimed.

Pointing to the ‘mini-manifesto’ released by the MDP in the build up to this year’s elections, Hamid claimed that was capacity for an additional 600,00 tourists to travel to the Maldives annually, yet there was not enough options to accommodate them.

“All across this country, you see that many islands are ready for [middle-market tourism]. There are impressive cafes. People who have worked in the tourism industry are setting up businesses based on their experiences,” he said. “Tourism is very much a business we know and some of these places are quite sophisticated.”

As part of the MDP’s election pledge, Hamid claimed that some MVR120 million was set to be pledged as part of a policy to provide “seed money” to help establish guest houses and supporting industries.

He said that guest houses have always been a central policy of the MDP to support national development.

By comparison, Hamid claimed that before coming to power, the previous government under former President Gayoom had tried to paint tourism on local islands as “haraam” to discourage interest and investment.

He claimed such a strategy was overseen by certain resort owners and tourism magnates alleged by the MDP to being central in bringing the present government to power on February 7, 2012.  Nasheed himself resigned following a mutiny by sections of the police and military.

Both Nasheed and the MDP have continued to contend that the transfer of power was a “coup d’etat”, despite the findings of a Commonwealth-backed Commission of National Inquiry (CNI) last year.

Responding to the party’s previous reported support for a tourism boycott, MP Hamid claimed the party had always committed itself to what it called selective boycotts – rather than calling for tourists to outright reject the destination.

“We are not saying that all resort operators are bad. But some of them were directly involved in the coup and have sought to exploit their positions,” he said.

Hamid denied the party had sought to boycott the industry outright, claiming instead to be targeting resort owners that he alleged ran their businesses unethically in the style of “cartels”.

Nasheed’s tourism potential

Just last month, in an open-editorial piece reprinted in Minivan News, former President Nasheed claimed that only 50 people directly profited from the resort industry in the Maldives, limiting what he claimed were a wealth of economic and social policies.

“What the average Maldivian wants is basic. We want a way to increase our income. We want to broaden our narrow financial horizons through development.

It is not that we lack this capacity to develop. We have plentiful natural resources. If we settle for the current economic status quo, believing that what we have now is the limit to what we are entitled to, it will mean that our true wealth potential remains untapped,” he wrote at the time.

“What the MDP and I have always pointed out is this basic fact: we want to develop. To upgrade beyond the current status quo. The ordinary Maldivian’s complaint is that of poverty, of financial anxiety. We want a wallet with the wads; we want to realise that financial progress is possible. The political office is a place that should offer solutions to these complaints. This is its responsibility and obligation.”

Meanwhile, an island owner involved in the country’s burgeoning mid-market holiday sector last week slammed new regulations imposing financial restrictions on tourism joint venture projects with the government, claiming the legislation outright excludes small and medium-scale investors.

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Four arrested in guesthouse raid on charges of prostitution

Four people were arrested in a guesthouse raid by police on Tuesday night (March 19) as part of an ongoing operation to curb prostitution in Male’.

The latest arrests take place just one week after police raided ‘Roma Beauty and Wellness Centre’ – a beauty salon in Male’ – and arrested 10 individuals on charges of prostitution.

Local media reported that the Tuesday night raid took place at a local guesthouse called ‘Relax @ Kangaroo Inn’ located on Dhiggaamaage in the Heniveru ward of Male’.

Police Spokesperson Chief Inspector Hassan Haneef said today (March 20) that two Maldivian men and two Thai women were arrested on Tuesday night around 8:30pm in an “intelligence-led operation”.

“Police received an arrest warrant before raiding one of the rooms within the guesthouse, where the suspects were found naked and engaged in sexual activity.

“Following a search of the room, a number of [sex] toys and over MVR 4000 (US$260) were found by police,” Haneef told Minivan News.

Refuting a report in SunOnline that claimed the Relax @ Kangaroo Inn guesthouse was being run as a brothel, Haneef stated: “We never made a comment to suggest that claim.”

Manager of Relax @ Kangaroo Inn Mohamed Hamid confirmed to Minivan News today that the premises had been raided by police.

“We had no idea that the two men had been with prostitutes at the guest house. The police just came, took them outside and then they were gone,” he added.

Last week, four Maldivians, four Thai women and two Bangladeshi men were arrested in the beauty salon raid.

Police claimed that when police raided the salon four of the 10 people inside the premises were naked and involved in sexual activities.

When police searched the premises of Roma Beauty and Wellness Centre they discovered MVR13,000 (US$845) and “tools used for sexual activities”.

Police said the office of Roma Beauty and Wellness Centre was also searched, where police discovered “other items’’ in connection with the case.

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Police arrest gang members in guest house sweep

Police have arrested several suspected gang members during a sweep of 14 guest houses.

Haveeru reported Chief Inspector Hamdoon Rasheed as saying that police had gathered evidence in gang violence cases during the operation over the last 2-3 weeks.

“After gang violence activities, members of the gangs do not stay at the same place. Even though they are registered in Male they are moving to rented rooms,” he told the press.

He also appealed to local landlords and guest house owners to be aware of the problem when renting rooms.

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