Tag: MATATO

MATATO calls for reviews of resort security

Bolstering security at the lucrative island resorts scattered across the Maldives poses an urgent challenge for government and industry amidst growing national and international crime, the Maldives Association of Travel Agents and Tour operators (MATATO) has claimed.

Mohamed Maleeh Jamal, Secretary General for MATATO, said today that despite a relatively low number of security breaches at the country’s resorts, wider societal issues such as gang crime, piracy and terrorism needed to be hastily addressed by tourism operators and authorities.

The concerns echoed recent comments made to the media by Dr Mariyam Zulfa, Maldivian Minister for Tourism, Arts and Culture, over fears that rising levels of national crime are beginning to impact the country’s secluded resort business. The tourism industry has this year witnessed a number of isolated criminal incidents at the country’s resorts culminating last week in an attempted robbery at Baros Island Resort and Spa, and the death of one of the attackers.

The Tourism Minister said that while the industry had been working to be proactive in recent weeks to outline new measures alongside police and private companies that are designed to strengthen security against a number of potential “internal and external” threats, the recent robberies and reported presence of piracy in Maldivian waters has made addressing these issues more urgent.

Responding to the Tourism Minister’s concerns, Jamal 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 tourist 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.

The MATATO secretary general added that it would be vital to protect the Maldives’ main tourist selling points such as natural beaches and the peace and security afforded by a policy of providing a single resort per island.

“If we lose just one of these factors the Maldives will lose out as a destination,” he said. “We are a hospitable people and we welcome visitors with a smile and we expect record visitor numbers in the coming years.”

Jamal claimed that the full potential of an expected increase in visitor numbers could be disrupted on the back of continued reports concerning local crimes and regional issues like piracy.

The MATATO secretary general added that the security issues currently being faced were potentially a short-term challenge for the industry to overcome.

“We see the importance of collaborations with the Maldives National Defence Force (MNDF) and police to step up patrols across the country’s islands,” he said.

Jamal additionally stressed that the recent concerns were also related to wider societal issues such as drug abuse across the country inhabited islands that would reacquire a more “holistic” approach to prevent criminals from targeting resort islands, though he added that MATATO would also look to speak with property owners for their own suggestions for dealing with any possible threats.

“We are very fortunate here in the Maldives that the resorts are isolated – although there have been a number of incidents they are well managed by the resorts,” he said. “Yet 99 percent of the country is water, this creates a huge task to manage and police.”

Jamal was confident that the Maldives’ tourism industry had in the intervening decades since its inception proved to be capable to adapting in the interests of security as well as profitability; from moving towards the use of supposedly safer sea plane transportation rather than helicopters, or adopting en mass more efficient fire safety procedures in the 1990’s.

“In the past we thought that it may natural disasters that would be are biggest challenge, yet in terms of adaption, although terror threats may not be immediate, more preventative measures need to be in place,” he claimed.

Jamal claimed that despite potential concerns from the presence in neighbouring waters of Somali pirates – whose suspected presence in the Maldives has yet to lead to any attacks – the number of the threats at present facing the industry had remained limited.

Ministerial concerns

After announcing concerns to the media this week about the possible impact criminal activity could have on tourism in the Maldives, Dr Zulfa told Minivan News today that she was referring particularly to the proportional rise in crime and gang behavior in society rather than the tourism industry alone.

However, the tourism minister herself accepted that recent reports of attempted robbery at Baros and a violent theft at Kihaadhuffaru resort in January this year, as well as the potential in the future for attacks from piracy and terrorists had brought an additional sense of “urgency” to addressing security issues.

She added that extensive discussions on the issues of security and safety would form the basis of meetings scheduled between the tourism industry and security officials next month (April 6 to 7).

“The [crime] issue is of a serious concern to me, though is proportional to what happens in the country at large rather than resorts alone,” she said.

Zulfa claimed that in the interests of trying to be proactive in protecting security, the country 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 that ultimately, the government alone could not handle the entire burden of dealing with security challenges and 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.

“As industry representatives we will all be getting together on the April 6 and 7 to have extensive discussions with police and security authorities to address these urgent issues,” she said. “Papers have been earmarked looking at a number of issues including internal and external threats as well as public safety in areas such as watersports and resort design.

Taking the example of safety, Zulfa took the example of large resorts where people might be more isolated and ensuring that mechanisms were in place to ensure guests and staff were able to be assisted efficiently and quickly.

“We are looking to be proactive and have been wanting to do this [outline amended security and safety policies] for some weeks,” she said.

Not all stakeholders within the tourism industry have shared concerns over security though.

Workers’ perspective

Maroof Zakir, Vice President of the Tourism Employees Association of Maldives (TEAM), told Minivan News that although it had not been consulted on the amendments to security in the Maldives, it had not received any complaints from its members concerning fears about safety or security.

“We haven’t had any complaints about security fears from our members, I would say this is not a big problem for resort staff at present,” he added.

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New Year brings new tourism tax to Maldives

The New Year has potentially ushered in a new era for the Maldives’ lucrative holiday market as a Tourism Goods and Services Tax today comes into effect placing an additional charge of 3.5 per cent on a host of services supplied by the country’s travel industry.

The new tax is set to be levied on a wide of services; from room rates at resorts, guest houses and liveaboards, to tourist vessel hire and the cost of food and drink, diving schools and domestic transportation.

Speaking this week to the Agence France-Presse (AFP) service, acting Finance Minister Mahmood Razee claimed that the implementation of the new tax represented a government strategy aiming to roll out more direct national funding from Maldivian industries, where operators like resort owners have not previously been required to pay profit or income tax.

“It will gradually be extended to other [business] sectors… to reduce relying on indirect taxes, especially import duties that hurt the poor,” Razee told the AFP.

Mohamed Maleeh Jamal, Secretary General for the Maldives Association of Travel Agents and Tour operators (MATATO), said that as an organisation, it was not against a service tax within the travel market, yet he claimed that concerns existed how the funds would be implemented.

“We as MATATO have concern over the negative impact there may be from the tax on local travel agents in the Maldives, which unlike other travel markets, has no law protecting [domestic] operators,” he told Minivan News. “This can make it hard to be competitive when foreign operators are also working directly with resorts and the industry to obtain strong value.”

Pointing to key travel markets like the UK that have themselves last year instigated amended departure taxes such as an Air Passenger Duty (APD), Jamal said he believed there was international industry concern over the “Maldives becoming a more expensive destination”. He claimd that the taxation developments could hamper the country’s competitiveness against other holiday hotspots.

However, the MATATO Secretary General said that the association did not have issues with the actual figure of 3.5 per cent being added to services in itself and remained positive that MPs would still be able to help try and alleviate some industry concerns over the new tax rates.

“We are hoping we can discuss measures with parliament that will help protect local travel agents,” he said.

With the new rates in place as of today, Jamal said that the industry had already begun working with tax authorities to ensure its members and the wider travel industry understood how to deal with the new system.

“Some of our [travel] agencies have not quite been clear on how the tax works,” he said. “It takes time to become familiarised with such a new system.”

In looking back, 2010 had be seen as providing a positive turnaround in visitor figures.

Official statistics from the Ministry of Tourism, Arts and Culture released in November reported year-on-year visitor growth of 21.8 for the first ten months of the year.

Between January to October 2010, the official ministry figures showed that 63.3 percent of visitors to the Maldives came from European markets. Asia Pacific territories contributed 32.3 percent of overall travel demand to the country during the same period.

Publication of the figures followed a period of turbulence for the tourism industry towards the end of the year generated by media coverage of a video recording of a ‘false wedding’ conducted at the Vilu Reef Resort and Spa. Footage leaked onto video sharing sites like Youtube depicted some staff members mocking a Swiss couple in the local dialect of Dhivehi during a vow renewal ceremony being leaked online. The incident garnered both local and international coverage.

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Economics and value praised by industry body for ongoing tourist turnaround

The Maldives Association of Travel Agents and Tour operators (MATATO) believes an improving economic situation in a number of key travel markets has helped drive a bounce back in visitor arrivals to the Maldives during 2010, when compared to the same period last year.

Mohamed Maleeh Jamal, Secretary General for the group, said that an improving economic climate and better complimentary packages have been positive developments for the industry after recent negative headlines generated in light of the high profile ‘false wedding’ video widely circulated in the press and online.

The comments were made as tourist arrivals to the Maldives were found to have increased by 19.7 percent during October compared to the same period last year, marking improved fortunes for the country’s travel industry during 2010, according to new official figures.

The statistics from the Ministry of Tourism, Arts and Culture found 74,707 visitors had arrived by air to the Maldives, up from 64,432 a year earlier. The growth continues a successful nine-month period for Maldives tourism that has seen year-on-year visitor growth of 21.8 for the last ten months.

In addressing the increases, Jamal told Minivan News that an improvement in the global economic climate had aided tourist industry commitments to try to be more competitive by offering more complimentary offers like an additional night’s stay or free transfers.

Alongside an explosion of interest from Chinese tourists that the MATATO Secretary General expects to continue during the next few months and years, a ‘good number’ of travellers from established markets in Europe also continued to flock to the nation’s atolls to provide a more balanced revenue source.

Between January to October 2010, Tourism Ministry figures found that 63.3 percent of visitors to the Maldives came from European markets. Asia Pacific territories contributed 32.3 percent of overall travel demand to the country.

The figures come after a turbulent month for Maldivian tourism, following a video recording of a ‘false wedding’ conducted at the Vilu Reef Resort and Spa that depicted some staff members mocking a Swiss couple in the local dialect of Dhivehi during a vow renewal ceremony being leaked online. The incident garnered both local and international coverage.

Jamal said that with many people now deciding to take or research holidays over the internet, the high profile nature of the incident was definitely likely to stain the country’s reputation as a hotspot for luxury and honeymoon travel.

“To be honest, it was a strange incident that we never would have expected to happen,” he added. “We don’t know yet how much of an impact it will ultimately have on tourism. It is not good, but [the impact] has not yet been as bad as we first thought.”

Addressing the incident, Ahmed Solih, Permanent Secretary for the Ministry of Tourism told Minvan News that he was reluctant to use the term ‘false wedding’ in regard to a ceremony that had been booked as an authentic experience for the couple who had been filmed.

In response, Solih pointed to a number of high profile apologies made to the couple – including a personal call from President Mohamed Nasheed with an offer to come back to the country as his guests – as a reflection of the serious anger among the industry and Maldivians about the incident.

The Permanent Secretary added that although it is impossible to speculate how the wedding video would impact tourist demand in the future, it was now vital for the industry’s reputation to prevent any repeats of the incident in the future.

Solih said that although the incident was isolated to a single occurrence on one of the country’s more than 90 tourist resorts, a number of e-mails and correspondence had been received reflecting the bad taste left by the incident on the tourism market.

In looking at current tourist growth though, Solih believed that the complex nature of tourism means that there are many contributing factors to the growth beyond just fauvorable economic conditions.

The Permanent Secretary claimed that the Ministry was itself focused on trying to diversify the nation’s appeal to a wider number of markets and nations wads vital to try and protect the industry from external factors such as economics that it has no control over.

“Along with the Maldives Tourism Promotion Board (MTPB) we have spent years of hard work researching and looking to new markets,” he said.

Aside from lucrative emerging economies like China, Solih claims that the industry had been making inroads to Middle Eastern and American markets in attempts to try and broaden the Maldives’ appeal around the world.

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Resettling GITMO detainees will tarnish tourism industry: MATATO

The Maldives Association of Travel Agents and Tour Operators (MATATO) has warned the government that its plans to resettle Guantánamo Bay prisoners in the Maldives, and the recent Afghan peace talks that took place in the country, could “tarnish the prestigious name” Maldives has made for itself as a tourism destination.

“The association notes that the international media has been writing on the matter of bringing in the prisoners, who have been allegedly linked to severe inhumane crimes,” the association noted, adding that the BBC had described the government’s plan as “transforming a tourists’ paradise to a paradise for terrorists.”

Their concern was that tourist arrivals would decline due to the international perception of the country, creating a devastating domino effect in the country’s tourism industry.

Furthermore, they said “bringing Guantánamo Bay prisoners will badly affect the tourism industry and so this association calls on the government not to do anything that would pave the way for such a thing.”

MATATO board members have been planning a meeting on the issue this week, but it has been postponed twice due to several members being out of the country.

Secretary General of MATATO, Mohamed Maleeh Jamal, said they did not have quorum to hold the meeting yesterday, but are trying to gather enough members to hold it as soon as possible.

He told Minivan News yesterday “we are meeting regarding the Afghan talks, which is quite a sensitive issue.”

Board and council member of MATATO, Sharif Ibrahim, said whether or not the recent events will have a negative impact on the tourism industry in Maldives “is all about how you see things.”

Referring to the Afghan peace talks, he said the international community “might see us as a loving, peaceful country. Somebody had to step in and help. Some people will see this as a good thing.”

As to the resettlement of Guantánamo Bay prisoners, he said “it may have a negative effect,” but added everyone must keep a “broad mind” before jumping to conclusions.

“I haven’t seen any bad reactions yet,” he said, “I don’t think it will have a bad impact. We’ll have to wait and see.”

Although MATATO have voiced their concern, other associations are not so worried about the Maldives’ reputation, or its effect on the tourism industry.

Maldives Resort Workers posted an article on their blog titled ‘Gitmo resettlement will NOT damage Maldives’ reputation’.

In the article, they repeatedly argued that MATATO’s concerns of the resettlement of Guantánamo Bay detainees and the recent Afghan peace talks are exaggerated views, and are sure that neither issue will have a negative effect on the industry.

They gave several reasons back up their argument, saying that resorts in the Maldives are usually visited by “high spenders” who “generally have their heads with them. So they could not possibly be unaware of world politics or ramifications of it.”

They also argue that Guantánamo Bay detainee centre is “not a terrorist camp or training ground for terrorists,” and they support US President Obama’s bid to close it down. They also added that, “this time, the president [Mohamed Nasheed] is correct. Absolutely correct to ZERO decimals without error.”

The article further reads the opposition parties in the country are “taking advantage of the ignorance of the masses to gather support,” and they have applauded President Nasheed for refusing to answer journalists’ questions at a press conference last week.

“In this case,” it continued, “the opposition is using media to the hilt to discredit a rather commendable move by the president.”

They add that MATATO members are “just individuals who make a life selling package holidays to unwary tourists” and they are “the most worker unfriendly people who works [sic] in the tourism industry.”

The Maldives Association for Tourism Industry (MATI) did not wish to comment on the issue, because “we don’t want to lend anything to either side of the argument.”

The government has sustained any prisoners resettled in the Maldives would be first cleared of any criminal charges, and have repeatedly assured “they are not terrorists” and the transfer is “purely humanitarian.”

Minister of Tourism, Arts and Culture, Dr Ali Sawad, did not respond to Minivan News at time of press.

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Government spending on tourism marketing comes under scrutiny

A tour operator has claimed that the government should not spend so much money marketing multi-million dollar resorts, particularly since it receives such limited revenue from the industry in return.

Ahmed Firaq, chairman of tour operator Inner Maldives, said the government should not be so much money on tourism advertisement marketing resorts as many had their own marketing campaigns.

Firaq told newspaper Miadhu that the “amount of money being spent on tourism advertising is the same money which could go into the development of social services”.

Government tourism advertising

State Minister of Tourism Thoyyib Mohamed Waheed said the government’s budget for tourism, including marketing, is planned each year in advance.

“The money [for marketing] comes from both stakeholders and the government,” Waheed said, mentioning that the industry adds to the budget if it is asked by the government.

“If there is not enough funding, we approach the industry,” he said.

Waheed said the “industry is quite cooperative” but added the government “does needs more help and support from it.”

Secretary General for the Maldives Association of Travel Agents and Tour Operators (MATATO) Mohamed Maleeh Jamal said after the 2004 Tsunami the marketing budget “drastically increased” to about US$9 million per year.

This number remained unchanged until the 2008 economic depression, when the budget decreased to its current amount of US$2.5 million, used mainly for destination marketing.

Sim Mohamed from Maldives Association of Tourism Industry (MATI) said the government has “very little money to play around with. When this government took over, [the country] was broke.”

Sim said marketing was essential in times of crisis, particularly following events such as the 2004 tsunami or the financial depression, as “you need to let people know you are still here.”

Jamal noted that MATATO’s main concern “is the total number of rooms is increasing and the [marketing] budget is down. If it is reduced further, in the long run we will be disadvantaged.”

Jamal estimated this year’s spend on tourism marketing across the Maldives to be around US$30 million. The industry, he said, was providing around US$20 million for specific product marketing.

He said in a time when the tourism industry is being “expanded north to south” the government should at least maintain the previous budget, if not increase it.

With the new tourism taxation bill being considered in parliament, (a bill that will phase out the ‘bed tax’ which currently stands at US$8 per night) the government will be getting an additional six percent in revenue from the tourism industry, “but they are still reducing the marketing budget,” Jamal claimed.

Marketing the Maldives as a tourist destination

Sim agreed that “the government should get out of [marketing] all together” and “business should be left to businesses.”

But he expressed his appreciation for the government’s efforts to help the industry, saying “we like what the government is trying to do.”

Sim believes “the government should regulate and set national and industry standards” and not focus so much on advertising.

“It is tour operators who sell the Maldives,” Sim said, and “they are doing a good job at it. We should keep them happy.”

He added that “the tourism industry is not about resorts alone, but also employment, transport and aviation.”

He also questioned on whether the government should be spending any money on marketing the Maldives as a tourist destination, saying “it sells itself.”

And although there are other similar products on the market, Sim says the Maldives offers “unique features” and not a lot of money is needed to market it as a travel destination.

However Jamal said competition in the region is a major concern. He noted that the Sri Lankan government has allocated US$50 million to tourism marketing this year, a significant amount compared to how much the Maldivian government is spending.

“We need to maintain occupancy,” Jamal said, adding that the Pacific islands, the Middle East and African countries like Mozambique were quickly becoming major competitors.

One of the main marketing strategies for the Maldives, according to Jamal, is “destination branding”. This brings another major concern for MATATO to the surface.

Jamal said tour operators “now say the Maldives is sinking”, and asked why travel agencies would send their customers to a “sinking” destination.

Other traditional marketing strategies for the Maldives have been road shows and travel fairs. Jamal says road shows in China, Eastern Europe and the Middle East have been cancelled for this year, and that the Maldives is attending eight fewer travel fairs than it did last year.

“We don’t see much [advertising] in magazines,” Jamal said, adding that existing advertising contracts with television channels BBC, National Geographic and CNN will expire this June “and there is not enough budget to renew them.”

“The success of the tourism industry in the Maldives depends on whether or not we maintain advertising,” he said.

On his return from Copenhagen President Mohamed Nasheed said the Maldives’ growing significance on the world stage as an icon of climate change – and the associated free publicity – was worth far more than the government could ever spend on paid advertising.

Tourism Revenue

One of Firaq’s complaints was that the government should be spending this money on development for social services and not on tourism advertising.

When asked about Firaq’s statement that the revenue from the tourism industry should be spent on developing social services and not on marketing, Waheed noted that the money “doesn’t come straight to the ministry, but it goes to the Treasury.”

The Treasury then decides how the money is allocated; some of it goes to social services and some goes back to the tourism industry.

Press Secretary for the President’s Office Mohamed Zuhair said “there is no direct relationship between tourism revenue and social service development.”

He added that the expenses of tourism marketing are jointly assumed by MATI, the Tourism Ministry and the Tourism Board.

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