MTCC ferry and bus services to charge GST

Ferry and bus services operated by Maldives Transport and Construction Company (MTCC) will now charge GST in addition to the ticket price, local media has reported.

MTCC Transport Executive Ismail Fariq told Sun Online that the company is now required to collect GST as it is a registered company at Maldives Inland Revenue Authority (MIRA).

Under the new requirements, tickets to Hulhumale’ cost MVR 5.30 and a ticket to Vilimale’ is charged at MVR 3.18. Inter-atoll island-to-island ferry services charge MVR 21 and MVR 53 for a trip to Male’
. Hulhumale’ bus fees have also increased to MVR 2.12, according to local media.

“It is not that we have increased the prices of our services. We have just added the GST 6 percent to our services,” Fariq told local media. “As such, GST will be collected from ferries from Hulhumale’, Vilingili, Gulhee Falhu, Thilafushi and province ferries as well as Hulhumale’ bus services.”

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New Zealand consul denies involvement in resort employment dispute

New Zealand’s Honorary Consul in the Maldives Ahmed Saleem has denied involvement in a labour dispute involving a resort his company owns, New Zealand media has reported.

A letter obtained by Minivan News on January 8 from the Service and Food Workers Union (SFWU) warned the New Zealand government that it risks being held in “international disrepute” over the alleged involvement of Saleem in an ongoing employment dispute with the Conrad Rangali Island Resort.

In June 2011, 29 staff members working at the Conrad Rangali Island Resort in the Maldives alleged they had been dismissed from their posts following a strike held by workers in March that year.

According to the letter sent this month by the SFWU’s National Secretary John Ryall, 22 of the workers made redundant later challenged their dismissal at a local employment tribunal and won.

The tribunal ordered the workers be reinstated and receive backpay, however the ruling is being appealed.

Ahmed Saleem, who is a director of Crown Company which owns Conrad Hilton resort on Rangali Island, told stuff.co.nz that neither he nor his company were part of the decision-making process at the Resort.

He said management of the Rangali Island Resort, as it was then known, was given to Hilton International in 1997.

“All management decisions of Conrad Maldives [are] made by the management of Conrad Maldives, independent of Crown Company,” he told New Zealand media.

A spokesperson for Conrad Rangali Island Resort told Minivan News earlier this month that the case is currently under appeal at the High Court.

“Conrad Maldives Rangali Island is aware that there are petitions for the reinstatement of employees made redundant in 2011. We would like to remind the media that the resort is not required to reinstate the previous employees while the High Court considers the appeal,” the spokesperson added.

New Zealand Foreign Affairs Minister Murray McCully said he had received a letter about the matter from the New Zealand Service and Food Workers Union, earlier this week and had asked the Foreign Affairs Ministry for further information, stuff.co.nz reported.

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Motor racing comes to the Maldives: Piston Motor Racing Challenge 2013

An “official” street racing event open to drivers and motorcyclists in the Maldives is to take place in Hulhumale’ later this month as part of the Maldives Motor Racing Association’s (MMRA) ‘Piston Motor Racing Challenge 2013’.

The event will give individuals the chance to experience racing with “no speed limits”, as long as they meet race requirements and have access to a vehicle, Piston Motor Racing Challenge Event Organiser Ismail Agleem told Minivan News today.

According to the event’s Facebook page, the race is the only motor racing challenge in the Maldives and is being undertaken in association with the Maldives National Defence Force (MNDF) and MMRA.

“We have a special area in the industrial ground of Hulhumale’ which will be closed off for the riders and drivers to race in. It is going to set the benchmark for motor sport racing in the Maldives”, Agleem said.

“We want to encourage motor sport racing in the Maldives and eventually build an official track to encourage sports tourists into the country. It is an ideal location to attract people interested in motor racing,” he added.

According to the MMRA website, individuals who hold a valid licence and are “physically and mentally fit” will be eligible to take part in the race.

Agleem said that while anyone who meets the race requirements can enter, motor cyclists will be required to have five days worth of practice and car drivers will need to attend a practice session. Any competitor who fails to attend these sessions will be deemed a “non-qualifier”.

The MMRA website states that competitors in the junior events should also attach a “no objection” letter from a parent or guardian when submitting entry forms.

Asked whether there was a risk that the competitors – some of whom who may have only driven in the speed controlled zones of Male’ – risked an accident, Ismail said there had been “no serious accidents” in previous events, and that drivers are given plenty of time to practice.

Speed limits in Male, according to Transport Authority Chairman Abdul Rasheed Nafiz, are less than 30km/h, whereas for motorcycles the speed limit is just over 25km/h.

Police Spokesman Hassan Haneef today said that the Maldives Police Service (MPS) would be meeting with event organisers tomorrow to discuss matters regarding the race.

“Clearly driving [at speed] is an issue and that is our concern. We will be meeting with the event organisers tomorrow to discuss how we can work together,” Haneef told Minivan News.

Agleem said that roughly 95 vehicles will take part in the event, spread out across a 14 different races based on engine size and vehicle type.

According to Agleem, while the event is the fifth of its kind, it is the first time the MNDF have been involved and MMRA have worked together with Piston.

MNDF spokesman Colonel Abdul Raheem confirmed to Minivan News that the MNDF are involved in the event helping with “security and the preparation of the event.”

Raheem further stated that the MNDF will be providing medical services and an ambulance should it be needed.

Responsible driving

The MMRA website claims the event will “provide a safe environment for racers to come out and show their talent” while also directly helping “to reduce traffic violations” in regard to speeding and dangerous driving.

MMRA members are not allowed to perform stunts without permission of “concerned authorities” and is fully against illegal street racing, the website states.

According to the MMRA website, the association was legally registered in 2009 and has organised many events, rider development programs and fundraisers in the past years.

The Piston Motor Racing Challenge Facebook page also states that organisers will be working together with local law enforcement agencies to ensure public road safety.

Starting on January 18, the event will be officially launched at Raalhugandu in Male, followed by a car and bike procession through the main streets of Male’.

Qualifying rounds for the race will take place in Hulhumale on January 25, and the actual race will take place on January 26, according to the MMRA website.

Between the race days, the Facebook page states there there will be raves, drag races, DJs and live music as well as stunt shows and fireworks.

“We have invited all cabinet and parliament members to come along to the races too,” added Agleem.

Race day events

There will be a total of ten motorcycle races and four car race events as follows:

Motorcyle events:

  • Mio, Airblade, PCX open event
  • 125 modified
  • 135 modified
  • 125 to 135 open
  • 125 to 200 manual open
  • 400 to 750 modified
  • 600 to 1000 modified
  • 400 to 1000 open event
  • Exhibit event
  • Ladies scooter event

Car race events:

  • 1000 to 1600 modified
  • 1600 to 2000 modified
  • Up to 3000 and  above open event
  • RX8 event

Race entries are now closed. Photographs by ‘rushhphotos’.

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MNDF launch basic diving course for international military personnel

Maldives National Defence Force (MNDF) has initiated a basic diving program to be used by international military personnel, local media have reported.

Entitled ‘MNDF Coast Guard Basic Diving Course’, Defence Minister Colonel Mohamed Nazim told local media that the course is the first to be organised by the MNDF and used by foreign ministry personnel.

“The first course will include personnel from the Indian Coast Guard, Sri Lankan Navy, Nepalese Special Forces, and 12 personnel from MNDF. I believe that this course will be successful in every way, and that more countries will participate in the future,” Nazim was quoted as saying in Sun Online.

Lieutenant Mohamed Shareef of the MNDF coast guard told members of the press that the diving course will continue for a period of two months, during which participants will learn how to appropriately handle situations they may face underwater.

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PPM MP Abdulla Yameen’s campaign team will “accept defeat” should they lose party congress

Progressive Party of Maldives (PPM) MP Abdulla Yameen’s campaign team have said they will accept defeat and follow the winner should they lose in the party congress this month, local media reports.

The first congress of PPM is to be held on January 17 and will see both Umar Naseer’s campaign team and Yameen’s ‘Yageen Team’ compete in the congress, Sun Online reported.

PPM Spokesperson Ahmed Mahloof told local media that PPM will hold debates between contestants in line with the principles of democracy.

Mahloof said that party members will not become enemies, adding that disagreements such as those arising between members of Dhivehi Rayyithunge Party (DRP) will not arise between members of PPM, local media reported.

“This party has over 30,000 members. The party will always follow the decisions made by them. The major concern of our party members would be that we may end up like DRP. God willing, that won’t happen to us,” Mahloof was quoted as saying in Sun Online.

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Rising migrant worker population threat to “Maldivianness, culture and nationhood”: President Waheed

President Mohamed Waheed Hassan Manik has warned the Maldives will face difficulties in seeking foreign assistance should it descend to Tier 3 of the US State Department’s human-trafficking watch list.

Speaking at a ceremony to celebrate National Day, Waheed stated the Maldives is now “forced” to take measures against changes to the “national character” due to the rising number of migrant workers in the country.

The Maldives has been listed on the tier 2 watch list for human trafficking for three years in a row. Waheed stated that if the country descends to Tier 3, “it would face difficulties, among other issues, in seeking foreign assistance”.

In 2012, the Maldives only narrowly avoided a descent to Tier 3 – the worst category – after presenting a written plan that, “if implemented, would constitute making significant efforts to meet the minimum standards for the elimination of trafficking.”

In his speech today (January 13), Waheed said the government was taking measures to prevent the country from falling into Tier 3 category of human trafficking, by initiating an awareness campaign underway and a draft bill on anti-trafficking submitted to the People’s Majlis.

Foreign influence threatens “Maldivianness”: President Waheed

In his National Day speech, Waheed also warned that the Maldivian population risks being overtaken by the migrant population in just six years if immigration continues to grow at its current rate.

Waheed stated that this was something “no Maldivian can and will, want to accept”.

“If the number of migrant workers continues to increase, [Maldivian] national character will be lost,” the President was reported as saying on the island of Fonadhoo in Laamu Atoll.

“If the influence of foreigners grows, [the] threat of negative impacts on Maldivianness, culture and nationhood is not unrealistic,” he added.

Border control system crucial in addressing human-trafficking

At the National Day speech, the President was reported as saying that an effective border control system was crucial for addressing trafficking.

Last month, parliament voted unanimously to instruct the government to terminate the border control project agreement with Malaysia-based IT group Nexbis, over allegations of corruption.

Speaking about the BSC project last month, Majlis Finance Committee member Ahmed Hamza told Minivan News at the time there was a “worry” within the immigration department that their own border control system would not be sufficient.

Furthermore, Hamza stated there was a “possibility” that human trafficking could increase should the Nexbis contract be cancelled, and to combat this parliament will need to provide a “sufficient solution to deal with these problems”.

Speaking at National Day, President Waheed claimed there were approximately 111,000 migrant workers using work visas and over 40,000 illegal migrant workers in the Maldives.

‘Blue Ribbon Campaign Against Human Trafficking’

The Ministry of Foreign Affairs recently inaugurated an initiative targeted at raising awareness of the human trafficking issue in the Maldives.

The strategy, entitled ‘Blue Ribbon Campaign Against Human Trafficking’ is expected to include activities to try and raise awareness among students and the business community.

The Foreign Ministry announced that it had signed a memorandum of understanding (MOU) with multiple local media outlets in the country as part of the campaign’s aim to raising awareness of human trafficking and other related issues.

The MOU states that the media outlets will produce and broadcast programmes aimed at disseminating information on the issue of human trafficking.

Nasheed’s National Day statement

Meanwhile, former President Mohamed Nasheed gave his own National Day statement calling for a security force that is “impartial and honest” to help build the nation.

“The nationalism that had defended [our] freedom [in the past] should be beneficial to the people and their progress.

“The true guardians of this system are the people. Today, due to an uninvited interference by the security forces to the people’s rightfully elected government and their interference to the progress of the nation has resulted in re-emergence of the old political culture,” Nasheed said, in a statement.

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Maldives falls 40,000 short of million tourist target for 2012

The Maldivian government has narrowly failed to reach its target of one million tourist arrivals for 2012, according to figures released by Ministry of Tourism, after a year of political turmoil and an economic slump in key markets.

Despite arrivals falling short by roughly 42,000 tourists, figures released by the ministry have shown that overall arrivals rose 2.9 percent from 931,333 in 2011 to 958,027 in 2012.

Prior to the release of the figures, Tourism Minister Ahmed Adheeb predicted that while there may be a shortfall of roughly 20,000 in 2012, he was confident the ministry could achieve the one million mark in 2013.

“There were a lot of hiccups last year with the political turmoil that the country experienced. It is important that we do not compare ourselves to other destinations like Sri Lanka or Seychelles, as our tourism market is very different. We have a high-value tourism market.

“We will formulate a strategy to go forward this year and later this month [January] we are going to finalise the fourth master plan of tourism. I am sure we will get one million tourists in 2013. I can assure you of it,” Adheeb told Minivan News earlier this month.

Figures released by the  tourism ministry show that Europe, which accounted for 54 percent of all tourist arrivals in 2012, fell by 3.7 percent from 537,757 in 2011 to 517,809 in 2012. Arrivals from the United Kingdom – the second highest share of European arrivals to the Maldives this year – continued to fall from 104,508 in 2011 to 91,776 in 2012 – a 12.2 percent  drop.

Germany took over the UK in 2012 as having the largest share of European arrivals to the Maldives, growing by an extra 7,834 arrivals from 90,517 in 2011. The 8.7 percent increase in arrival numbers, meant that Germany was accountable for 10.3 percent of all tourist arrivals in 2012.

Italy, which had the second highest arrival share of European tourists in 2010, fell drastically in 2012 by 24.4 percent from 83,088 arrivals to 62,782.

Meanwhile, tourist arrivals from ‘Asia and Pacific’ regions continued year-on-year growth from 2010, increasing by 10.2 percent from 2011 and accounting for a 40.1 percent share in the overall market at 384,506 arrivals in 2012.

Shift to ‘low yield’ Chinese tourists

Chinese arrivals continued to grow in 2012, with a 15.6 percent increase from 198,655 in 2011 to 229,551 in 2012.

Chinese tourists now account for the largest share of arrivals from any nation in 2012 standing at 24 percent, a massive increase from Chinese arrival figures in 2009 which stood at 60,666.

Despite the high number of Chinese tourists, tourism experts stated back in 2010 that Chinese guests were relatively ‘low yield’ despite their high numbers.

Speaking to Minivan News in 2010, the now former Secretary General Maldives Association of Tourism Industry (MATI), Sim Mohamed Ibrahim, said Chinese tourists tended to spend less than their European counterparts.

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

Tourism growth slowed to less than one percent in 2012

Tourism growth meanwhile slowed to less than one percent in 2012. While the tourism industry grew by 15.8 percent in 2010 and 9.1 percent in 2011, the industry’s growth in 2012 was expected to be 0.7 percent.

The two main reasons cited by the Finance Ministry for the anaemic growth were “the political turmoil the country faced in February” and a decline in the average number of nights tourists spend in the country “as a result of a decline in the average number of days a tourist spent in the Maldives.”

On average, tourism accounted for 28 percent of GDP during the past 10 years.

Despite the widely reported Ibrahim Nasir International Airport (INIA) dispute between the Indian infrastructure giant GMR and the Maldivian Government in December last year – as well as claims of anti-India sentiment within the country – arrivals from India  increased by 34 percent in December compared to the same month in 2011.

The largest increase in tourist arrivals compared to 2011 was from the Middle East, which saw close to a 50 percent rise in arrivals for 2012 at 21,843 from 14,570 in 2011.

Arrivals from United Arab Emirates grew the highest in percentage from 2011 by 76.6 percent. Despite the high percentage growth however, the number of tourists was comparatively low to other countries standing at 4,047 in 2012.

MVR 70 million tourism marketing budget in 2012

The Maldives Marketing and Public Relations Corporation (MMPRC) was allocated a budget of MVR 70 million (US$4.5 million) in 2012 to conduct marketing activities for the year, almost double the 2011 budget of US$2.3 million, which saw the country receive 900,000 tourist arrivals.

Following February’s controversial transfer of power, the incoming government of President Dr Mohamed Waheed Hassan sought to utilise public relations groups and advertising to try and offset the impact of negative news headlines resulting from the controversial nature of the change in government.

That focus included a US$250,000 (MVR3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services, as well as signing a £93,000 per month (US$150,000) contract with public relations group Ruder Finn to try and improve the country’s image internationally.

Maldives tourism authorities said back in October that they were confident the country would meet its one million visitor target, despite ongoing “political turmoil”.

Registered beds up, occupancy rates down

According to the 2012 statistics released by the Tourism Ministry, the average number of registered beds between resorts, hotels, guest houses and safari vessels stood at 27,702 in 2012 – an increase of 1,346 from 2011.

Despite the increases in tourism arrivals, bed nights fell from 6,529,200 in 2011 to 6,450,794 – a total drop of 1.2 percent – and the average days spent in the Maldives by tourists fell from 7.0 days in 2011 to 6.7 days in 2012.

Occupany rates also fell across all types of accommodation aside from a 1.9 percent increase on safari vessels. Altogether the occupancy rates fell from 73.1 in 2011 to 70.6 in 2012.

Maldives top five markets by visitor numbers (2012)

China: 229,551

Germany: 98,351

United Kingdom: 91,776

Russia: 66,378

Italy: 62,782

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Maldives Inland Revenue Authority conducts training program on financial crimes

Maldives Inland Revenue Authority (MIRA) has conducted a training program to increase staff awareness of financial crimes.

A MIRA official told local media that the ‘Investigation Schools Development Program’ was conducted from January 6 to January 10 in cooperation with the police.

“The training program informed MIRA staff on how to act when they encounter cases of tax evasion during auditing or investigations”, the MIRA official was quoted in Sun Online.

Maldives Police Service provided instructors for the program.

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President should have ratified political parties, privileges bills: DRP MP Mausoom

Government-aligned Dhivehi Rayyithunge Party (DRP) Deputy Leader Dr Abdulla Mausoom has expressed disappointment at President Dr Mohamed Waheed Hassan Manik’s failure to ratify two controversial bills outlining parliamentary and political party regulations.

Dr Mausoom today told Minivan News that he believed the president should have ratified both bills before then seeking to make changes to specific clauses once they had been passed into law.

He claimed such an act would have allowed President Waheed to remove potential doubts that he may be acting to protect his own political interests by not approving the bills.

The President’s Office confirmed Thursday (January 10) that the People’s Majlis privileges and powers bill and the political party bill had been returned to parliament for reconsideration Thursday (January 10) after originally being passed late last year.

Among the key features outlined in the two bills were potential punishments for anyone attempting to stymie or disrespect the Majlis and its work, as well as a requirement for all political parties to have 10,000 registered members or face being dissolved by the country’s Elections Commission (EC).

Both bills have been criticised in part by NGOs and smaller political parties in the country over fears about the perceived impacts they may have on the democratic development of the Maldives.

However, speaking to Minivan News today, DRP Deputy Leader Mausoom said that he believed the president should have opted to ratify the bill, which he contended has certain regulations and requirements that had long been overdue in the Majlis, before then attempting to enact amendments at a later date.

Dr Mausoom claimed that with Dr Waheed’s own Gaumee Ithihaad Party (GIP) facing being dissolved as a result of being short of the 10,000 registered members required by the political parties bill, his failure to ratify it could lead to doubts over the partiality of the president’s decision.

“Maybe they are concerned they would not be able to get sufficient member numbers if it is passed,” he suggested.

As of January 13, 2013, Ethe lection’s Commission figures indicate that GIP has 3,218 registered members. Ratification of the political parties bill would have given President Waheed’s party three months to have obtained 10,000 members or face being dissolved by the EC.

Listening to minorities

Despite the comments, Dr Mausoom said the DRP was undecided on how to proceed over whether to seek a compromise in amending the two bills,  or support the existing provisions.

“The bill defining privileges for the Majlis is long overdue. While there may be some room for fine tuning, the bill itself is a must,” the DRP Deputy Leader added.

Dr Mausoom said that with the political parties bill, he understood that major concerns existed regarding the requirements for 10,000 registered members.  He claimed the DRP would take into account the views of minority parties in the Maldives before making any decision on the matter.

“There is thought that any political party should be able to obtain 10,000 members if it is to represent the views of the people, but there is also an argument to leave regulations as is it,” Dr Mausoom said.

“It is best to decide after listening to minority parties on the issue. We have always advocated as a party to listen to minorities whoever they are.”

Political parties were first authorised in the Maldives in May 2005 following an executive decree by then-President Maumoon Abdul Gayoom. Political parties have remained governed by a regulation requiring 3,000 members for registration.

This regulation did not stipulate that parties whose membership falls below the figure would be dissolved.

In March last year, EC Chair Fuad Thaufeeq told Minivan News that these regulations were “vague” as parties were not required to maintain 3,000 members once formed.

Despite a failure to ratify the two bills, Dr Mausoom rejected the notion that a divide had been formed between the president and the country’s legislature, adding that there were always likely to be differences of opinion within the present coalition government after it came to power in February 2012 under disputed circumstances.

“There is no friction between parties and the president. When we came to power, we had no unified policy, however any issues with have with the president we will raise with him,” he said.

Bill criticisms

The proposed amendments to regulations on political parties and parliamentary privileges were among a number of bills recently passed within the People’s Majlis that were attacked by local NGOs Transparency Maldives (TM) and Maldivian Democracy Network (MDN) earlier this month.

In a joint statement, the NGOs expressed concerns that clauses within the bills threatened to “weaken the democratic, good governance system” and “restrict some fundamental rights,” in the Maldives.

The political parties bill in particular has come under fierce criticism from smaller political parties in the country. Earlier this year, Special Advisor to President Waheed and Leader of government-aligned Dhivehi Qaumee Party (DQP) Dr Hassan Saeed warned he would seek to invalidate the bill should it be ratified by the president.

He told local media at the time that the bill infringed rights enshrined in the constitution and that he would file a case at the Supreme Court requesting the law be struck down.

Dr Saeed was not responding to calls from Minivan News at time of press.

Late last year, the religious conservative Adhaalath Party accused the Majlis of directly attempting to “eradicate” Islamic ideology from Maldivian politics and limit its efforts against what it alleged were attempts to secularise the country.

Adhaalath Party Leader Sheikh Imran Abdulla said he suspected that “black money” from Indian infrastructure company GMR was behind the decision to insert the clause requiring 10,000 members. The government late last year voided a sovereign agreement with GMR to develop Ibrahim Nasir International Airport (INIA) – a decision strongly backed by the Adhaalath Party as part of a self-claimed “national movement”.

Imran claimed at the time that “a person with a brain would not deny” that the decision by parliament’s Independent Institutions Committee to raise the prerequisite to 10,000 members from 5,000 at a late stage was made “because the Adhaalath Party would be disqualified at that number.”

Parliamentary Speaker Adbulla Shahid, Deputy Speaker Ahmed Nazim and the Majlis’ Minority Leader Progressive Party of Maldives (PPM) MP Abdulla Yameen were not responding to calls from Minivan News at the time of press.

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