No staff complaints received following termination of Hilton management agreement: Tourism Ministry

The Ministry of Tourism, Arts and Culture has said it has “not officially” received complaints that staff at the Iru Fushi Resort in Noonu Atoll have faced alleged political harassment after the property’s owners terminated a management agreement with Hilton.

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News this week that while the tourism ministry closely monitored working standards and staff treatment across the industry, it had not been informed of any concerns so far resulting from the change in management at the resort on May 1.

Despite the claims, the Tourism Employees Association of Maldives (TEAM) said an official letter had been sent to the Tourism Ministry last week raising concerns over allegations that employees were facing intimidation over their political beliefs from fellow staff and management at the Iru Fushi Resort.

The allegations of harassment were said by the trade union to have intensified since local company Sun Tour and Travels opted to terminate Hilton’s management of the site at the beginning of the month – adding no official response had been received from the Tourism Ministry.

Sun Travel and Tours, which is owned and operated by local businessman and media magnate MP Ahmed Shiyam, announced May 1 that it was terminating Hilton’s agreement to manage the Noonu Atoll-based resort.  No reason has so far been given by the resort owner for the termination despite repeated requests for an interview by Minivan News.

“The cessation of Hilton Worldwide’s management of that resort was unforeseen and due to factors outside its control,” the hotel chain said in an official statement following the termination.

Sources on the resort, speaking to Minivan News on condition of anonymity, have previously accused Sun Tours of allowing MP Shiyam’s Maldives Development Alliance (MDA) to offer jobs at the site exclusively to its supporters, while also threatening and harassing staff with differing political view points.

“When Hilton was here, there was freedom to talk about politics, whatever party you supported,” an employee at the resort claimed earlier this month. “No one was holding campaigns here for parties or anything, but now just talking about politics is a problem. This has happened recently.”

The same staff member at the time accused certain employees of acting as “MDA spies” for MP Shiyam’s political party, leading to fears about job prospects at the site for those with differing political views.

“People are really afraid to talk here now. We know that some people here represent the MDA [party] and we have heard them warn others ‘we have the power now’ – these are words they are using,” the source claimed. “We do not have job security right now.”

The resort is now being run as the Maldives Iru Fushi Resort and Spa.

MP Shiyam had his phone switched off at time of press, while company spokesperson Mohamed Hameed was out of the country when contacted by Minivan News.

Inspection process

Deputy Minister Maleeh said that tourism authorities had not been “officially” made aware of the allegations raised by Iru Fushi staff, adding that from the ministry’s experience, the vast majority of the country’s resort workers and management were all working together to benefit the wider industry.

“If there is an issue, we will go and inspect resorts and make sure staff are being treated in line within the stipulated requirements,” he said.

Maleeh said that various conditions and standards concerning treatment of resort staff were outlined by ministry regulations such as the number of toilets being provided to employees and their living arrangements.  Maleeh added that a large number of operators complied with these practices.

“Some resorts currently even provide a staff pool,” he said.

Maleeh said that while the tourism ministry was able to carry out inspections of resorts where there were reported staff issues, it had not been given any information that wuld require it to carry out such checks at the Iru Fushi resort.

He added that in the case of a management termination, the ministry itself looked to avoid involvement in cases involving two private parties in the country unless there was deemed to be a significant contractual issue.

“Even then, a contract like this is normally governed by international law or arbitration anyway,” Maleeh added.

Hilton has meanwhile said earlier this month that discussions were continuing with Sun Travels over the decision to abruptly terminate its agreement, though no further details were being provided by the company at present.

Despite the decision by Sun Travels to terminate Hilton’s management contract for Iru Fushi, the hotel giant still presently operates the Conrad Maldives Rangali Island resort in the Maldives for a different company.

Attractive destination

Maleeh claimed that the Maldives ultimately still remained a very attractive destination for multinational hotel chains and boutique hospitality groups alike, adding that the ministry had received “no complaints” regarding their treatment in the country.

“The reason that the Maldives is so popular is not only is it a place where contracts are known to be honoured, but it also offers a return on investment that is very strong,” he said.

The deputy minister said that there continued to provide a very favourable investment climate for hospitality companies.

Maleeh said that upon returning from a recent visit to the Arabian Hotel Investment Conference that took place earlier this month in Dubai, there remained a strong interest and appetite for emerging hospitality groups to enter the Maldives tourism industry.

The Maldives already has 100 exclusive island resorts being operated in the country by both local and multinational companies.

However, TEAM Secretary General Mauroof Zakir has told Minivan News he that the trade union remained concerned at the response of tourism authorities in the country to complaints raised by staff following the termination of Hilton’s agreement.

Zakir said that after having submitted an official letter to the tourism ministry earlier this month, no response had yet been received over its concerns.

Just last week, TEAM alleged it had received received information that management had been hiring  local MDA members to replace staff members who resigned since the change in management.

Zakir added that he had also been informed by various members of staff that Sun Travels had since brought in a number of experienced managers from its wider resort operations to ensure the property was being run more smoothly on the back of alleged difficulties following the changeover.

“Things seem to be much more under control at the site now, staff told me,” he said last week.

However, Zakir has continued to maintain that there was concerns that authorities were failing to properly review the nature of the resort termination and its impact on staff as a result of political influence.

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Hilton in talks following contract termination as staff allege political harassment from new management

Hilton has said discussions are continuing with operator Sun Tour and Travels over the local company’s decision to abruptly terminate its contract to manage the Maldives Iru Fushi Resort last week.

The claims were made as staff at the property alleged some workers are now facing harassment over their political alignments following the termination of the resort giant’s management contract.

Sun Tour and Travels announced on May 1 that it was terminating Hilton’s agreement to manage the Noonu Atoll-based resort, with sources on the island accusing the local tour operator of giving the multinational company barely 24 hours notice to cease their operations before they were asked to leave.  The resort is now being run as the Maldives Iru Fushi Resort and Spa.

The Hilton group, which continues to manage the Conrad Maldives Rangali Island property in the country, today confirmed to Minivan News that it was still in discussions with the resort’s owner, Sun Travel and Tours regarding the matter. Hilton said it could not therefore confirm what action it would take to resolve the matter.

Sun Travel and Tours is owned and operated by MP Ahmed Shiyam, a local businessman and media magnate, who last year founded his own political party, the Maldives Development Alliance (MDA).

Current resort General Manager Abdulla Thamheed today said he was “not the right person” at Sun to speak on the decision to terminate the Hilton contract, requesting Minivan News instead contact a media official at the company’s head offices in Male’.  The nominated spokesperson was not responding to calls or e-mails at time of press.

However, a member of staff at the resort, speaking on condition of anonymity, said workers were continuing to perform their duties at the site, despite claiming that 40 employees had resigned since the termination of the Hilton contract last week.

“Staff are working as hard right now as they were before,” the source claimed. “We need the money for our families.”

Job security fears

The employee alleged nonetheless that a work environment had “recently” developed resulting in staff being “fearful” of talking politics on the resort during their free time.

Since the termination of Hilton’s agreement,  the resort source accused certain management and staff at the resort backing MP Shiyam’s MDA party and making verbal threats against workers who held different political beliefs.

“When Hilton was here, there was freedom to talk about politics, whatever party you supported,” the source said. “No one was holding campaigns here for parties or anything, but now just talking about politics is a problem. This has happened recently.”

The staff member accused some staff of acting as “MDA spies” for MP Shiyam’s political party, leading to fears about job prospects at the site for those with differing political views.

“People are really afraid to talk here now. We know that some people here represent the MDA [party] and we have heard them warn others ‘we have the power now’ – these are words they are using,” the source claimed. “We do not have job security right now.”

Outside of talking politics at the resort, the same source alleged that staff had lately found their access to televised news media being restricted in the staff area to private pro-government aligned broadcaster DhiTV.

The employee said requests by some workers for access to other private broadcasters such as VTV and Raajee TV – media owned by political and business rivals of Shiyam or perceived as being aligned with the opposition politicians – were currently awaiting management approval.

Complaints

The Tourism Employees Association of Maldives (TEAM) today claimed it had continued to receive complaints from workers at the resort before and after the termination of the Hilton management agreement concerning attempts to politicise staff.

TEAM Secretary General Mauroof Zakir said he had received information that management had been hiring  local MDA members to replace staff members who resigned over the last week.

However, Zakir added that he had also been informed by various members of staff that Sun Travels had brought in a number of experienced managers from its wider operations to the resort to ensure it was running more smoothly after alleged difficulties following the changeover.

“Things seem to be much more under control at the site now, staff told me,” he said.

Zakir had expressed concern about a lack of response from tourism officials and industry bodies about the nature of the change of management and allegations of political influence at the resort.

Minivan News was awaiting a response from Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal at time of press.

Aftermath

Sources at the resort have alleged there have been a number of cancellations from Hilton loyalty members over the decision to terminate the company’s contract, as well as complaints from some guests concerning security at the site after police were summoned to the property earlier in the week.

However, the same source stressed that the Sun Travels and Tours had provide compensation packages for guests at the property following the change in management.

Police Spokesperson Chief Inspector Hassan Haneef confirmed this week that police had attended the resort on May 4 in response to allegations that three female Maldivians staying at the property had been harassed.

Haneef said police arrived at the site to investigate after receiving a complaint from resort management over alleged harassment of some guests by an unidentified suspect.

He claimed that police had insufficient information to identify a suspect at the time of press.

Earlier this week, sources at several large local travel operators based in Male’ confirmed to Minivan News that some bookings for the property had been cancelled as a result of Hilton no longer operating the site.

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Cancellations and resignations after Iru Fushi Resort terminates Hilton contract

Sun Travel and Tours has abruptly terminated its agreement with hotel giant Hilton to manage the Maldives Iru Fushi Resort leading to the resignation of 30 employees at the property, staff have alleged.  The termination has also led to some guests cancelling their bookings at the property with local operators.

Hilton said that its agreement to run the resort was cancelled officially on May 3 by the Sun Travel and Tours company.

“The cessation of Hilton Worldwide’s management of that resort was unforeseen and due to factors outside its control,” the hotel chain said in an official statement.

A staff member at the Noonu Atoll-based resort, who asked to remain anonymous, alleged the property’s owners had given Hilton barely 24 hours notice before terminating the agreement.

The staff member said Sun had given little information for the reason for the termination, stating that Hilton’s management team was notified on April 30 that their services would no longer be required.

According to a letter sent to staff that was seen by Minivan News, Sun took over management of the property on May 1 and began removing all Hilton branding from the resort, which will now be known as the Maldives Iru Fushi Resort and Spa.

“As I understand, management were informed by letter at about 3:00pm on April 30 that the owners would be taking over. Even Hilton did not know what was happening. There is a lot of shock, it is a very smoothly run resort,” the resort source claimed.

Despite a pledge by management at Sun Travel and Tours management to retain all staff at the site, the staff member said some employees were now concerned about their job security.

The staff member said 30 of an estimated 500 staff employed at the resort has resigned in the four days following the termination of the Hilton contract. Bookings had already been cancelled due to of the loss of the Hilton name, the source said, while other guests were already in the process of trying to amend their bookings.

Sources at several large local travel operators based in Male’ confirmed to Minivan News today that some bookings for the property had already been cancelled.

Peaceful handover

The resort staff member praised Hilton’s conduct in handing the property over in a peaceful manner, claiming that the company had in some cases offered to transfer guests to the company’s other resort in the country, Conrad Maldives Rangali Island.

“Hilton have been so patient in this matter and left the place so professionally. Although its GM had left, the management urged us not to resign right away and to think of our families,” the source claimed.

After Hilton management were informed of the cessation of the management agreement, the source alleged the company was given less than 24 hours to vacate the premises, with access to the site’s computer equipment and offices cut off by 12:00pm the following day (May 1).

“I am a Maldivian myself, but I am ashamed of these guys and the way in which they have [taken over management],” the source claimed.

No statement from Sun

Sun Travels and Tours Pvt Ltd is owned and operated by MP Ahmed Shiyam, a local businessman and media magnate, who last year founded his own political party known as the Maldives Development Alliance (MDA).

Shiyam was not responding to calls at time of press, though senior MDA official Ali Mauroof recommended Minivan News contact Abdulla Thamheed, “our general manager” at the resort.

Thamheed later requested that media inquiries on the resort be addressed to Sun Travel and Tours offices in Male’. Minivan News was still awaiting a response from the company at time of press, which had yet to release an official statement as of May 5.

Political activities: TEAM

The Tourism Employees Association of Maldives (TEAM) meanwhile claimed it had received complaints from workers at the resort before and after the termination of the Hilton management agreement concerning attempts to politicise staff.

TEAM Secretary General Mauroof Zakir alleged he had received several reports of widespread uncertainty at the resort from staff, alleging a number of guest rooms were being provided to MDA supporters and members.

“The resort’s operations are being jeopardised by a complete lack of understanding as to who are paying guests and where people are staying,” he alleged. “It sounds like a real mess there at the moment.”

Zakir said that TEAM had also received complaints by staff concerned over job security at the resort amid reports that individuals signing up to the MDA were being offered employment at the site.

“More than this, there is the direct damage to the industry of losing a major name like Hilton from the country,” he claimed. “We haven’t heard anything from the Tourism Ministry about this and will be looking to meet authorities over the matter tomorrow.”

Minister of Tourism, Arts and Culture Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding to calls from Minivan News at time of press.

The staff member meanwhile claimed that during the second day of working under the new resort management, a speedboat belonging to MP Shiyam had arrived with an entourage of people who had been campaigning for the MDA on nearby local islands.

“This party have been staying here with the owner [MP Shiyam] while they conduct political activities,” claimed the source.

As well as using the resort’s offices for MDA administrative matters such as photocopying and producing promotional material, the member of staff alleged that politicisation of the resort had been ongoing even while Hilton was in charge of site.

“Management have already hired two new guys linked to [MDA]. As I understand they were employed without undergoing any of the regular formal processes. Those who are here do not feel this is a safe place to work right now,” the source alleged.

Police called over harassment of female guests

Police Spokesperson Chief Inspector Hassan Haneef meanwhile confirmed that police had attended the resort on May 4 in response to allegations that three female Maldivians staying at the resort had been harassed.

Haneef said police arrived at the site yesterday afternoon to investigate after receiving a complaint from resort management over alleged harassment of some guests by an unidentified suspect.

He claimed that police had insufficient information to identify a suspect at the time of press.

The resort source alleged police had been called to the resort over allegations of attempted sexual assault of female guests on Friday (May 3) by an individual he claimed was part of the resort owner’s group.

“This individual entered the room belonging to these ladies and threatened them if they tried to make a noise,” the source alleged. “They managed to scare the man off and he escaped. These ladies complained and the police were called. This person was not a guest,” he said.

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Beyond Earth Hour: Conservation efforts prove “challenging”, but vital for Maldives resorts

For 60 minutes on March 23 this year, resorts across the Maldives attempted, on a voluntary basis, to throw their guests into darkness – or at least dimness – for the high-profile Earth Hour event, reports Minivan News’ spin-off travel site, Dhonisaurus.

Earth Hour, established by the World Wildlife Fund (WWF) NGO, aims to encourage cities, organisations and households all over the world to simultaneously turn off lights and other electrical appliances for a single hour in an attempt to raise the profile of energy conservation measures.

Public and private sector organisations were among those participating across the Maldives’ capital and other islands this year, which was celebrated afterwards, somewhat paradoxically, with a dance event complete with a large sound system in Male’.

However, attempts at cutting the use of artificial lighting at resorts across the Maldives to celebrate this year’s Earth Hour have been claimed by hospitality groups to be reflective of wider efforts across the country’s lucrative tourism industry to better balance sustainable operations with high-end luxury.

Starwood Hotels, which operates both the W Retreat and Sheraton Maldives Full Moon Resort and Spa, claim to have participated in Earth Hour for the last five years – commitments the company has claimed are well appreciated by guests.

“Year on year, we’ve seen positive responses from the guests regarding the various [sustainability] initiatives,” stated a spokesperson for the group. “Naming for example the ‘Coral Planting Project’ at Sheraton Maldives was very well received by some guests who found it very informative and rewarding as well to contribute back to the nature.”

“Quite challenging”

Beyond occasional, high-profile commitments such as Earth Hour, Starwood Hotels said that trying to balance more sustainable operations in the Maldives with consumer expectations of luxury and fine dining was not without its challenges.

“It’s quite challenging being in the Maldives due to its geographical nature, but being in the Maldives gives us an even greater meaning to work towards a more eco-friendly holiday experience and sustainability through efficiency and better use of resources in order to reach our goals by 2020,” stated a company spokesperson.

Read more.

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Social stigma limiting employment of local women in resort industry, report finds

A new study finds that Maldivian women are the least employed demographic in the resort industry, accounting for only three percent of the total eight percent of female workers at resorts in 2010. Local and foreign men constitute 92 percent of the industry.

Tourism directly accounts for 30 percent of the Maldives’ GDP, and for 70 percent indirectly.

The thesis, “Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was prepared by Eva Alm and Susanna Johansson during their five-month stay in the Maldives in 2010.

According to their findings, “culture, religion, and women’s role in the family, the role of the family, safety, geographical spread, transportation, education and awareness” were the main factors preventing women from seeking resort employment.

Interviews show that resort life is perceived as ‘western’ and imposes the negative practices of consuming pork and alcohol, supporting nudity, and allowing extramarital sexual encounters on Muslim Maldivian women.

By contrast, Maldivian male resort employees are exempt from these risks.

“Working in a resort as a woman is perceived as bad, as going the wrong way, as not a good place for a woman to be,” said one source.

Women interviewed said social stigma prevented them from seeking resort employment. The combination of not being able to come home at night and working at a resort with a significantly higher ratio of men to women is considered intimidating, sources said.

One father said, “If my daughter would not have the possibility of going home every night, I would not let her work in the resort, it is not safe […] if a woman will not come home at night after work, and she would maybe have a relationship with a man in the resort, which could result in a pregnancy […] this would have very bad impact on the family and would not be tolerated.”

Maldivians who engage in extramarital intercourse risk social ostracism, and women sometimes face punishment for pregnancy outside marriage. The country has among the highest divorce rates in the world.

Parents are said to play a significant role in a woman’s professional future. “In Maldives, in our religion, we are not allowed to drink or be with just any guys and things like that. So our parents are scared about that,” said one young woman.

One resort manager said awareness is a major challenge to promoting female employment. “Convincing the parents is difficult. They are very possessive of the girls. The parent’s perception is that they will mix with the European culture and do bad things such as drinking alcohol.”

A government representative added that “there needs to be a focus on educating mothers and fathers of the women who are willing to join the industry and demonstrate that it is perfectly in order for their daughters to work in the resort sector.”

Female unemployment in the Maldives is estimated at 24 percent, while male unemployment is only eight percent. Reports indicate that the industrialization of fishing, an enterprise previously shared between women and men, and the beginning of tourism eliminated the need for two incomes per household.

According to the report, Maldivian culture does not encourage women to take on entrepreneurial or leadership roles in business. Women are found to be raised to follow men, and a lack of domestic care services prevent women from leaving their posts as mothers and wives.

Women interviewed said that in order to employ more women resorts should “become more Muslim.” Most said they would not work where they could not wear the burqa, although when told that several resorts allow the burqa they maintained their position.

Women were also unaware that many resorts provide mosques for their Muslim employees.

Separating resorts from local island culture was an early tourism strategy, claims the report. Tourism officials at the time were said to believe the policy would protect local culture.

The separation is now considered a factor in island underdevelopment. “The problem we have is that we have first class resorts in the Maldives, next to them are the third world local communities, the villages,” said a government representative quoted in the study. “We have to get these engaged as the people from the island communities can get direct benefit from the resort industry through participatory involvement and inclusive growth.”

Some resort companies, such as Hilton and Soneva, try to compensate for this gap by outsourcing tasks to local islands.

Hilton resort began the “Green Ladies” program, bringing in groups of women from neighboring islands to sweep the resort during the day. Soneva supported the Veymandhoo women’s production of chili sauce in 2008.

Soneva’s Social and Environmental Manager said localizing resort development made Muslim women more comfortable in new professional opportunities. “It has got all the elements necessary for a solid livelihood project. You got women involved, it’s got livelihoods, it’s got commercial value to it, and it’s got localization aspect to it”.

Yet island production capacity does not meet resort demand. “’The communities have to be very much upscale to be able to manage small businesses, because resorts are big business and they wont rely on people who can‟t provide for their demands’”, said one source.

“Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was presented at Sweden’s Lund University in May, and is due for publication this month.

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Sri Lanka firm Malwatte Valley Plantations to invest in resort

Sri Lankan firm Malwatte Valley Plantations has announced its intention to invest US$26 million in a resort in the Maldives, consisting of 70 villas.

The company told the Colombo Stock Exchange that the project would begin in September and be completed in two years. The new property would be managed by the Hilton chain, following the signing of a Memorandum of Understanding (MoU).

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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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