Tag: MATATO

Maldives considering reverting to “sunny side of life” branding

The Tourism Ministry has begun discussing whether to change the  recently branded ‘Maldives-Always Natural‘ slogan back to the previously slogan, ‘The sunny side of life’.

The Maldives Marketing and PR Corporation (MMPRC) re-branded the 11 year-old slogan with a US$100,000 design by Thailand-based global tourism consultancy QUO Keen in October 2011, which was met with mixed reviews from the industry and the public.

Toursim Minister Ahmed Adheeb has commenced discussions with industry representatives to decide on the change, according to local news paper Haveeru.

“Even yesterday we had discussions with various persons in the industry. Most were of the view to change it (the slogan and logo). That is why we are going to discuss this further today,” Adheeb was quoted as saying.

The idea of moving back to the old brand has been put forward as it had been used for a long time and had become familiar: “It would be easier to promote a slogan and logo familiar to a lot of people. That is the why we are determining the view of relevant people from the industry,” Adheeb said.

The new branding, including the slogan and a fingerprint logo consisting of islands, corals, turtles, sharks and herons that transitions from blue to green, was met with criticisms with some people drawing comparisons to the logo of Washington-based environmental advocacy group, Ocean Conservancy.

Speaking to Minivan News, Maldives Association of Travel Agents and Tour Operators (MATATO) Maleeh Jamal welcomed the talks on the reinstatement of old logo.

“We believe it is best for the destination to reinstate the sunny side of life logo,” Jamal observed.

He said that while the organisation was never against the rebranding, they had concerns over  whether it was the right time to rebrand,  whether enough research was done, or whether the ample budget required for a worldwide rebranding campaign was available. “These basic questions were not answered,” Jamal claimed.

“We noticed that the whole process was not carried out very well. Then we found out that the tourism marketing budget for this year was extremely small for running a new rebranding campaign worldwide,” he continued,“so I hope the change will happen because we need to restore the demand and maintain the occupancy and existing level of arrivals.”

Meanwhile, Simon Hawkins, who headed the 16 month rebranding process as the former Managing Director at the MMPRC, dismissed the move as “a rejection that spits on a democratic, multi-party decision” by committee compromising high stakeholders, including MATATO and Maldives Association of Tourism Industries (MATI).

“We followed a 16 month inclusive process with a cross section of all stake holders, including MATATO and MATI, and we also took the general public view also taken into consideration,” Hawkins observed.

“The reason it took over a year and half to rebrand was because the [former] President want the process to be democratic,” Hawkins added. “But today we are seeing the decisions changed.”

When asked whether the reinstatement of the old logo affect the toursim industry, Hawkins responded: “Slogans do not break or make an industry. This is a highly image sensitive business. Imagine a hotel where the room has not been changed for 12 years. I agree, ‘sunny side of life’ did well in its day. But we needed to change it for today’s market.”

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Tourism Ministry may revise spa ban

The government is looking to revise the circular issued late last week requesting that resorts, hotels and guesthouses close down their spas over public allegations that they double as brothels.

“As specifying a certain distance from Male’ would not be a wise decision [in closing down spas] and that other resorts, which also cater for locals, are located close to inhabited islands, the government has decided to close down the spas in all the resorts on a fair basis and by giving a higher priority to the allegations made,” the circular read.

The decision to reconsider the circular was made after several resort owners and the Maldives Association of Tourism Industry (MATI) expressed “serious concern”.

A statement signed by MATI Secretary General ‘Sim’ Ibrahim Mohamed released last week expressed concern with financial losses as a result of the decision as well as effects on holiday-makers currently in the Maldives.

MATI urged the government and opposition parties to “find a peaceful solution” to the dispute.

“The tourism industry wishes for all actors in the political sphere to prioritise the domestic economy, development and security over differences and disagreements among political parties and not involve the economy’s main industries in these disputes,” reads MATI’s appeal.

MATI’s Chairperson M U Manik and Vice Chair ‘Champa’ Hassan Afeef have made statements in the media urging the government to reverse its decision to shut down resort spas after considering the consequences for the economy.

Meanwhile the government has also announced that it is considering banning pork and alcohol across the country, in response to the large number of Maldivians who protested against the government’s current purported “anti-Islamic” policies.

Tourism Minister Dr Mariyam Zulfa told Haveeru yesterday that the circular was issued in response to demands made by the coalition of religious NGOs and opposition parties during the protest to defend Islam on December 23. These demands included the closure of places which support prostitution, namely spas and massage parlors.

Zulfa noted that a policy shift towards strict Islam would have a profound economic impact on the Maldives.

“We can only sustain our economy by following the moderate form [of Islam] which has been in the Maldives until now,” she told Haveeru. “We [ministers] are labelled anti-Islamic because we support the tolerant form [of Islam]. But that label is a disgrace to our parents as well.”

According to Zulfa, several resorts had raised concern over the circular, and while they “are aware of the reasons that led us to take the decision,” the ministry is investigating a compromise.

The Minister was unavailable for comment at time of press.

Minivan News understands that several tour operators have also been calling resorts to inquire if indeed their spas and massage services have been closed down. Hulhule Island Hotel, near Male’, has closed its spa indefinitely.

Maldives Association of Travel and Tour Operators (MATATO) earlier issued a statement condemning the government’s decision to close five Villa Hotels’ resort spas over allegations of prostitution. MATATO noted that local and foreign resorts, tour operators and travel associations had expressed concern over the decision and that the damage to the industry would be grievous.

“The spa and wellness concept is very popular among tourists,” read the statement. “We urge the government to keep politics away from Tourism and also advise various
Tourism stakeholders as well to do same, as majority of Maldivians depends on Tourism for their livelihood and is something to be dealt with extreme caution and care.”

Today, MATATO did not respond to phone calls.

Speaking at a press conference held the day before the circular was issued, President’s Office Press Secretary Mohamed Zuhair justified the strong measure by saying that given the difficulty of distinguishing spas which endorse prostitution from those which do not, and that many high-profile Maldivians visit resort spas, it was important that strict measures be taken to protect those Maldivians’ good names.

Meanwhile, members of the coalition which made the demands have accused the government of “making a mockery of the demands” and “making excuses.”

Alleging that the government is targeting protesters, coalition spokesperson Abdullah Mohamed announced a sixth demand–that the government “stop causing harm to anyone who participates in the religious movement”.

The coalition has given the government until January 5 to fulfill the demands made on December 23, and has warned of further mass protests or direct action in the event that the deadline is not met.

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Transport, Tourism Ministers summoned for actions against Gasim’s businesses

Parliament’s Government Oversight Committee has decided to summon Transport Minister Adil Saleem and Tourism Minister Dr Maryam Zulfa after the government closed five spas in five Villa company resorts and grounded Airline ‘Flyme’ operations.

Flyme operations were cleared earlier today upon completion of a security inspection.

The companies are owned by opposition Jumhoory Party (JP) Leader and MP ‘Burma’ Gasim Ibrahim.

Transport Minister Adil Saleem today told Minivan News that the parliament has not informed him about the decision and has not yet received a summons.

He said the Transport Ministry had to ask Flyme to stop operations after it received a report that a plane’s windscreen broke during a flight to Male’.

‘’I as the Transport Minister have to be responsible for the safety of the flights operating in the Maldives,’’ Adil said. ‘’We did a safety audit following the incident.’’

He said three things were noted in the audit report.

‘’They have now corrected the three things noted in the safety audit report,’’ he said. Adil said he would not like to tell the media about the three things noted in the report.

Meanwhile Maldives Association of Travel Agents and Tour Operators (MATATO) voiced its extreme concern over the Tourism Ministry’s actions.

‘’The association has not been able to find the reason behind this nor see any investigation done by Tourism Ministry for such irresponsible action,’’ read MATATO’s press statement. ‘’The industry is in the midst of the business period with the new year ahead of us and sees that these actions by the ministry will have serious implications beyond repair.’’

The association noted that transfers that have been arranged for tourist arrival via ‘Flyme’ will be disrupted due to the decision to suspend the airline.

‘’The spa and wellness concept is very popular among tourists and many tourists pre-book their treatments in advance not only in Villa Resorts but across all the resorts in the Maldives,’’ the statement read. ‘’Already several international hotel chains operating in the Maldives are worried that the same could happen to them, and this will have a negative impact on investor confidence and will be a motive for businesses to take money out of the economy rather than inject it locally.’’

MATATO also urged the government to keep politics away from tourism as ‘’majority of Maldivians depend on tourism for their livelihood and it is something to be dealt with extreme caution and care.’’

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Maldives a tourism leader in Asia-Pacific region

The Maldives was among the most popular destinations in the Asia/Pacific (APAC) region for the month of July, with a 27 percent increase in visitors.

Hong Kong followed closely with a 22 percent increase in visitors.

“Even during times of economic uncertainty, the Asia/Pacific region continues to perform strongly, reinforcing its image and position as a powerhouse of international travel and tourism,” said Pacific Asia Travel Association (PATA) Strategic Intelligence Centre director, John Koldowski.

Asia Pacific (APAC) tourism destinations continue to see an upward trend in visitors annually. July 2011 saw a seven percent regional rise in arrivals compared to the same month in 2010.

Although Japan suffered a 36 percent drop in July arrivals, allegedly due to the earthquake and tsunami, Northeast Asia on the whole saw a six percent gain on July 2010. The Pacific, meanwhile, experienced a 3 percent drop in foreign arrivals in July 2011.

A Care Ratings Maldives report recently stated that Maldives tourism has made an impressive comeback since the 2009 global recession, and investment from China and India is expected to surpass precedents in coming years.

This year, the Maldives reached 700,000 arrivals by September. According to Tourism Ministry statistics, 19.9 percent of these arrivals were Chinese.

The increased activity within the APAC region could have a cultural impact at home. “Maldivian staff are more familiar with Western culture,” said Maldives Association of Travel Agents and Tour Operators (MATATO), Mohamed Maleeh Jamal. “Many speak Italian, French, German. So, the shift required to cater to more Asian guests and customers has lead many Maldivians working in the industry to familiarize themselves with Chinese, Japanese and Korean languages and cultural practices.”

Jamal pointed to the 2004 tsunami as the turning point for the Maldives’ tourism market.

“Before then, tourism was dominated by western European countries, and travel companies in China and the Middle East had limited access. Resorts were reaching occupancy levels regularly, and so expansion was not necessary,” said Jamal.

After the tsunami, however, interest from western Europe declined and the tourism sector was forced to work more closely with neighboring countries and their travel agencies. “The Maldives was also receiving complaints that the market wasn’t diverse enough,” said Jamal.

Jamal added that China is an important trading partner for the Maldives, and there was room to expand the business relationship.

But the Maldives has several advantages in the Chinese market. “All countries want to get tourists from China, and the Maldives has an advantage,” said Jamal. “It carries an image of paradise islands and tropical vacations, which is very appealing. In addition, the Maldives is becoming a celebrity hot spot. Given the celebrity worshiping culture that is increasingly common in China, the Maldives is very appealing.”

Jamal commented that Sri Lanka is trying hard to compete with the Maldives’ market.

Tourism is the largest contributor to Maldives’ GDP and foreign currency, accounting for 70 percent of the national GDP indirectly. Maldives Marketing and Public Relations Corporation (MMPRC) aims to draw 1 million tourists to the Maldives by the end of 2012.

PATA international visitor arrival figures suggest that improved economic stability is bolstering APAC’s tourism trend.

According to Care Ratings, Foreign Tourist Arrivals (FTA) surged this year as China’s economy flourished and European economies made a slow comeback. Chinese tourists are projected to account for 15 percent of Maldives FTA by 2020.

But PATA studies note that the source market is shifting into northern Europe and Asia.

Koldowski pointed to a 50 percent increase in Russian arrivals so far this year, and a 14 percent jump in South Asian arrivals in July with 90,000 more visitors than the same month in 2010.

Southeast Asian arrivals to the region grew by 12 percent during the same time frame.

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MATATO welcomes increase in advertising budget

The Maldives Association for Travel Agents and Tour Operators (MATATO) has welcomed a government pledge to increase the tourism advertising budget from US$1.5 million to US$7 million next year.

MATATO Secretary-General Mohamed Maleeh Jamal told Haveeru that the association had assurances from President Mohamed Nasheed of the increase during recent consultations with the government.

Maleeh explained that increased marketing activities and advertising would maintain the Maldives as an up-market tourist destination in the face of growing competition and help local travel agencies secure more bookings.

The advertising budget was reduced from US$7 million to US$1.5 million in 2009 as part of austerity measures in response to the severe impact of the global economic recession on the Maldivian economy, which saw tourist arrivals plummet 10 percent in the first year of the new administration.

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Tourism Ministry condemns “misleading statements” from MATI over economic reform

The Tourism Ministry has condemned the Maldives Association of Tourism Industry (MATI) for “making statements to media outlets in a way that misleads the public about the government’s economic agenda”.

In a statement, the Ministry claimed that “MATI’s misleading statements in various media recently about the tax bills of the government’s economic reform agenda imply that the government’s efforts were undertaken without consulting officials from the tourism industry.”

The Ministry said it had “consulted a number of parties active in the tourism sector and sought advice for shaping the tax bills so that it would not be a disproportionate burden on the industry.”

“After these consultations, the Ministry is assured that businesses in the tourism industry support the reform agenda. Likewise, those in the front ranks of the tourism industry as well as MATI support it. Therefore, [the ministry] regrets an organisation like MATI making statements that are contrary to the advice and suggestions of senior industry leaders.”

Secretary General of MATI ‘Sim’ Mohamed Ibrabim was not responding at time of press.

The government has presented a raft of economic reform bills to parliament detailing several new taxes, including a business profit tax, general GST and income tax of those earning over Rf 30,000 (US$2000) a month. The government is also looking to increase its previously-passed tourism goods and services tax (TGST) of 3.5 percent to 6 percent, in exchange for lowering import duties, claiming that this will benefit businesses by allowing them to pay tax at the point of sale.

Secretary General of the Maldives Association of Travel Agents and Tour Operators (MATATO), Mohamed Maleeh Jamal, told Minivan News that his organisation had been consulted by the Maldives Inland Revenue Authority (MIRA) prior to the passage of the TGST, and was pleased to see some clauses implemented reflecting the input.

While no government body had sought to meet MATATO regarding the latest batch of bills, Jamal said parliament had forwarded them to MATATO for comment and input.

The Maldives pledged to the International Monetary Fund (IMF) earlier this year that it would pursue a package of policy reforms in exchange for a a three year economic programme to stabilise and strengthen the Maldives’ economy.

Under the new IMF program the Maldives has committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent
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New7Wonders “infringing sovereign rights of Maldives” by keeping country in competition, claims MMPRC

The Maldives Marketing and PR Corporation (MMPRC) has issued a statement reaffirming the Maldivian government’s decision to withdraw from the New7Wonders competition.

The statement follows claims by the Geneva-based foundation’s head of communications, Eamonn Fitzgerald, that the Maldives was still in the competition “because the authority to withdraw a participant from the campaign is a decision for New7Wonders alone, not for any government agency.”

The government withdrew from the competition on May 18, after claiming that New7Wonders’ commercial entity, New Open World Corporation (NOWC), had solicited hundreds of thousands of dollars for the country “to compete meaningfully”.

“We no longer feel that continued participation is in the economic interests of the Maldives,” said State Minister for Tourism Thoyyib Mohamed, at the time.

The MMPRC today said that a second statement was necessary “to halt any further misrepresentation by the NOWC regarding the involvement of the Maldives in their competition.”

“After the many attempts by the MMPRC to negotiate and explain our financial situation requesting a reduction of the price to meaningfully compete and stay in the competition, we  are again perplexed to learn that the NOWC are considering taking a smaller sum of money from a third party in order to keep the Maldives in the competition,” the MMPRC stated.

Secretary General Maleeh Jamal of the Maldives Association of Travel and Tourism Operators (MATATO) said yesterday that the association had been in contact with New7Wonders and was considering working on the event in the government’s stead, claiming that the competition promised “enormous return on investment”, and that “US$500,000 for such an award would be quickly recovered.”

The MMPRC today stated that “the democratically elected Government of the Maldives is the only legitimate authority to act in the name of the Maldives and its people”, as “NOWC originally sought acceptance and involvement of the Maldives in the competition with a government signature and payment.

“The Cabinet (not the MMPRC) has made the final decision to withdraw from the competition due to their findings. We feel that the continued participation of the Maldives in the NOWC competition is a matter entirely up to the democratically elected government of the country. Any infringement of this sovereign right, including continued disregard for our position on the matter, will leave us with no alternative but to seek legal recourse.”

In a recent opinion column for Minivan News, Fitzgerald argued that the MMPRC’s “unfounded complaints regarding the campaign sponsorship options have to be seen in light [of the] extraordinarily positive numbers.”

Fitzgerald referred to two “independent studies” he claimed estimated the economic benefit to each of the seven wonders as “US$1.012 billion”, and the total benefit to previous winners as “US$5 billion”.

The MMPRC stated that it “does not agree with the business arguments as quoted in the article for Minivannews.com. To imply that you can guarantee a positive response of an advertising campaign or PR stunt that is yet to happen is wholly unethical.

“The NOWC-commissioned reports and estimates cannot guarantee and secure a positive outcome for the Maldives. There are so many variable factors as to why marketing activities are successes or failures ‐ but no two scenarios are identical and so generalisations and assumptions should not be made when spending huge sums of the country’s money.”

The MMPRC highlighted several articles in the government’s contract with NOWC, noting that “the obligation to pay is determined and decided by [the Government of the Maldives] abilities and resources and that NOWC will respect this.”

“In light of our recent economic riots and financial crisis which was broadcast to the world, we feel that NOWC have totally disregarded our situation.”

The MMPRC further claimed that “despite our emails and answer phone messages to Fitzgerald, New7Wonders have refused to respond to our communications. We have also noted that their office premises appear to be empty and their colleagues with whom we previously had regular communications are no longer available.”

Fitzgerald said New7Wonders was reviewing the MMPRC’s statement, and confirmed that “all MMPRC messages to New7Wonders have been duly received and filed by us. As New7Wonders accepted the resignation of the MMPRC on May 17, this agency is no longer New7Wonders’s counterpart in the Maldives, so we have no reason to respond to it.”

He added that New7Wonders would issue a statement regarding the continued participation of the Maldives in the campaign on Thursday May 26.

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MATATO debating whether to continue New7Wonders campaign after cabinet’s withdrawal

The Maldives Association of Travel Agents and Tour Operators (MATATO) is considering offering to support New7Wonders to promote the Maldives in the competition, following cabinet’s decision to withdraw the country’s entry.

Announcing the decision last Wednesday May 18, State Minister for Tourism Thoyyib Mohamed said the Maldives was withdrawing from the competition “because of the unexpected demands for large sums of money from the New7Wonders organisers. We no longer feel that continued participation is in the economic interests of the Maldives.”

Sponsorship packages and funding of New7Wonders’ ‘World Tour’ event would have cost the Maldives upwards of US$500,000, tourism authorities estimated, not including the millions of dollars in licensing arrangements solicited from local airlines and telecom providers.

In an opinion column for Minivan News this week, New7Wonders’ Head of Communication Eamonn Fitzgerald emphasised that Maldives was still in the competition, “because the authority to withdraw a participant from the campaign is a decision for New7Wonders alone, not for any government agency.”

Secretary General of MATATO, Maleeh Jamal, said the association had been in contact with New7Wonders and was considering working on the event in the government’s stead.

The studies offered by New7Wonders promised an “enormous return on investment”, Jamal suggested.

“I think US$500,000 for such an award would be quickly recovered. Although the money was a concern, we had a fair chance of winning,” he said. “A lot of competing destinations, such as Australia and South Africa, are taking this competition very seriously.”

Sri Lanka had recently spent millions of dollars bidding to host the Commonwealth Games, he noted, as well as hosting a film festival.

“I think a lot of these awards are, as a matter of fact, marketing tools. Not many people are going to go into detail as to whether the competition is democratic. What is important is how it can benefit the destination.”

Asked whether he predicted that MATATO would be able to negotiate a discount from New7Wonders following the government’s withdrawal, Jamal said the association had not yet discussed financial matters with the organisation.

“Some of our members have indicated that they would be willing to contribute financially and offer other support. The executive will meet and discuss it this week and decide whether to continue or discontinue,” he said.

Meanwhile Secretary General of the Maldives Association of Tourism Industry (MATI), Mohamed ‘Sim’ Ibrahim, said he had “no idea about New7Wonders, beyond that it has been going on for some time.”

“It sounds like a gimmick. I understood there was a lot of money involved,” he said.

“MATI will not support it financially. Like any other business people will have to judge if its worth it. We were never consulted on the matter and were never party to this – we like to keep away from things we don’t know about.“

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Addressing “disenfranchised” youth key to strengthening Maldives resort security, claims president

Consultations between the police, government and tourism insiders continued today aimed at boosting resort security in the Maldives following recent robberies, with President Nasheed calling for additional support to address societal crime.

Tourism authorities in the country have said that the security seminar forms part of plans to try and proactively reduce the “internal and external” threats facing the country’s scattered array of island resorts.  This is seen as increasingly important amidst growing concerns over industry preparedness for potential criminal attacks.

President Mohamed Nasheed opened the security seminar yesterday calling for the travel industry and authorities to not just focus on immediate solutions to protect resort customers and staff, but also to address the perceived root causes of national crime.  Limited jobs and education opportunities for young people were highlighted by Nasheed as examples of the potential problems needed to be faced in Maldivian society to alleviate some of the causes of crime.

Police authorities have told Minivan News that the exact changes to be implemented as a result of the two-day security seminar could not be detailed yet as consultations between different authorities and organisations were ongoing.

President Nasheed said at the inauguration of the seminar that two prominent incidences of intrusion at properties such as Kihaadhuffaru resort and Baros Island Resort and Spa this year alone highlighted the “magnitude” of the threats facing the country.

While accepting that the tourism industry and the government could protect resorts against future intrusions by heightening security though measures such as introducing barriers, Nasheed claimed that there are wider social problems that also needed to be addressed.

Along with outlining new security measures, Nasheed used his speech to call on the Ministry of Tourism, Arts and Culture, industry insiders, the Maldives National Defence Force (MNDF) and law enforcement authorities to include plans to try and combat societal issues such as gang violence, theft and drug abuse that he linked with the “unemployed, uneducated and disenfranchised youth in the country”.

Nasheed claimed that these concerns were the root cause of the problems facing the resort industry in combating criminal threats.

The president’s claims echoed concerns raised by the tourism industry last week by groups like the Maldives Association of Travel Agents and Tour Operators (MATATO), which called for immediate measures to address the potential threats of gang crime, piracy and terrorism at resorts.  The association said that it did accept that a relatively low number of security breaches that have occurred so far.

MATATO Secretary General Mohamed Maleeh Jamal nonetheless said that the entire industry would need to face up to addressing preparatory measures for resort security as it outlines a fourth tourism master plan that will cover the sector’s work from 2012 onwards. The current masterplan is said to relate to vital initiatives to develop the country’s travel industry from 2007 up until this year.

“We fear there is a big challenge ahead related to security,” said Jamal at the time.

Dr Mariyam Zulfa, Maldivian Minister for Tourism, Arts and Culture, also told Minivan News that she believed that rising levels of national crime and violence were beginning to impact the country’s secluded resort business. The Maldives tourism industry has this year witnessed a number of isolated criminal incidents at its resorts culminating last month in an attempted robbery at Baros Island Resort and Spa and the death of one of the alleged attackers.

Zulfa claimed that in the interests of trying to proactively protect the industry, authorities had been “working for some time” on developing new measures to protect resorts and bolster existing security systems that are in place in the country.

The tourism minister added the government alone could not handle the entire burden of dealing with security challenges alone.  She claimed though that various stakeholders – from resort companies to airport operators – had so far been very cooperative in trying to ensure they were not “easy” potential targets for criminal attacks.

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