Tag: mid-market tourism

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

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

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

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

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

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

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

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

2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economy

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

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

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

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

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

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

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

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

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

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

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

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

Foreign policy

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

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

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

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

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

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

Related to this story

Tourist arrivals decline in January as Chinese arrivals slow down

Parliament approves state budget for 2015 with 60 votes in favour

PPM celebrates SEZ bill with fireworks


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

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

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

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

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

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

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

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

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

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

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

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

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

Read more.

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Guesthouse potential thrusts Maldives mid-market tourism into political fray

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

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

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

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

‘Real Maldives’

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

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

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

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

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

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

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

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

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

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

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

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

Compromise calls

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

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

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

“A weakling in need of love and nurturing”

Adrian Neville, a veteran of travel writing in the Maldives previously told Dhonisaurus that beyond the recent political arguments, guest-houses had played a major role in the development of the tourism industry, dating back to their foundation in 1972. However, such properties were abruptly closed for many years as of May 1, 1984.

“This was pretty much directly at the behest of the resort owners for obvious reasons and on the spurious grounds of social problems and the wrong type of tourists,” he said. “Of course, now those wrong types are just fine – now they are not ‘hippies’ but ‘independent travellers’.”

While guest-houses had been reintroduced back in 2008, Neville contended that he was not sure whether the general attitudes of resort owners in the country would have changed much, particularly in terms of supporting the fledgling industry.

“The sector is up and running, but it is a weakling in need of love and nurturing,” he said.

Neville claimed that while there was clear interest in the further development of a guest-house sector to allow independent travellers to take in the Maldives, the country’s long-term segregation of tourists from local communities may also serve to limit the potential.

“There is sufficient interest but it won’t grow quickly until the issue of separation or, most unlikely for the foreseeable future, co-habitation with different lifestyles, is resolved,” he said.

Quality standards

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

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

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

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

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

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

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

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

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

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

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

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

Bench added in recent years, despite previous government commitments to provide more mid-market accommodation for visitors wanting to explore the country’s inhabited islands, further support had been lacking.

“The government has not really been helping guest-houses at all. It is a small sector, but it is showing growth within the wider tourism industry. I don’t see any promotion from authorities,” added Bench.

“I do understand why this is the case. After all what is the point in promoting an industry with a value of US$50 a night when you compare that to what resorts can make.”

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Ministers slam Nasheed for “bluffing” over guesthouse commitments

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

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

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

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

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

Bed numbers

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

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

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

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

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

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

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

Boycott concerns

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

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

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

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

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

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

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

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

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

“Paradigm shift”

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

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

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

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

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

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

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

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

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

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

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

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

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

Nasheed’s tourism potential

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

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

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

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

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

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Maldives “finally open to independent travellers”: Lonely Planet 2012

The inhabited islands of the Maldives “are finally open to independent travellers,” according to the 2012 edition of the Lonely Planet, published this month.

“What’s more, these incredible islands are finally open to independent travellers, meaning you no longer have to stay in resorts and be kept separate from the local population, something that kept backpackers away for decades. Intrepid individuals can now choose their own itineraries and travel from island to island, living among the devout but extremely friendly local population,” reads the independent travel section on the Maldives entry.

“With a national ferry network in place and a growing number of privately run guesthouses on inhabited islands, the Maldives and its people are now more accessible than ever.”

Prior to the controversial transfer of presidential power on February 7, the formerly ruling Maldivian Democratic Party (MDP) pursued a policy of introducing mid-market tourism with guest houses in inhabited islands.

Lonely Planet is the world’s foremost travel publisher, printing over a 100 million books and guides in nine different languages.

(Read an edited extract from Lonely Planet Maldives [8th Edition] by Tom Masters, Lonely Planet 2012 here.)

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Addu Hubasaana 2011 Arts, Crafts and Food festival boosts local entrepreneurs

Minister for Economic Development Mahmood Razee inaugurated the Hubasaana 2011 Arts, Crafts and Food festival in Maradhoo Feydhoo of Addu City on Thursday, October 20. The festival, which was organized by Ministry for Economic Development (MED), will be a platform for Small and Medium Enterprises (SME).

The fair, which runs through October 22, is the culmination of a yearlong pilot project for developing local products that was conducted in the South and North of Maldives.

“The festival will showcase authentic high quality Maldivian products,” said Hamza Imad, MED’s international consultant for the project. In addition to the display of local products ranging from handicraft and woodwork to food produce, there will also be demonstrations of the making of regional delicacies like bondi (a sweet made of coconut) and kudhi gulha (fried short eat).

“The project will be expanded to other areas of Maldives next year,” said Imad.

Over 50 SMEs of nearby atolls GA, Gdh, and Fuvamulah are participating in the three-day festival, along with Addu City. Hubasaana 2011 will also be held in Hanimadhoo of Hdh atoll in early December. The event will enable SMEs from the northern atolls of HA, Hdh, Shaviyani to participate and promote their products.

Aishath Raniya Sobir, Monitoring and Evaluation Consultant for MED’s Private Sector Development Project said two Business Development Service Centers (BDSC) were set up last year in Hithadhoo of Addu City and Kulhudufushi of Hdh, to facilitate the project’s operations.

The centers provided business trainings in planning, marketing, start-up plans and technical expertise to over 5000 people from the project’s target atolls. Raniya said participants share the cost of training with MED “so that they can take ownership of this.”

Hobbies to businesses

The trainings were an important outlet for a thriving talent pool. “The islanders are very enthusiastic and talented, and a lot of time the people who came for the trainings had already been doing some handiwork as a hobby,” said Raniya.

One such person is Addu City housewife, Mariyam Naazly.

Naazly had attended various handiwork courses over the years. During a fabric painting course, Addu’s BDSC consultant gave a talk on start-up business cooperatives. Naazly said the talk motivated her to become an entrepreneur.

Joined by 10 other attendees of the course, Naazly formed the Addu Arts and Crafts Cooperative Society (AACCS), of which she is the president. The cooperative creates handicraft, like baskets of eekle broom, coconut art, bracelets from nuts found in trees and decorative items from empty rice sacks among others.

Today, Naazly’s hands are full. “We have been producing products for this fair over the past days, and we also have an order to produce 300 brooches for the Feydhoo Maradhoo schools prize giving day.”

Naazly is excited at the prospect of selling AACCS products to the resort representatives and shop owners that will come to the fair. But showing her products to fellow islanders is just as thrilling. “This is all so new here, people don’t even know what a cooperative is, I hope this fair will give us exposure and let people see the things we create.”

Discussion among islanders has innovated the crafts market.

“A participant brought a lions head done in from a pillow case, and we oriented them towards making things that exist in Maldives,” said Imad. The result was a totally new product on the market: a stuffed replica of Maldivian marine life including eels and sharks, that can be taken home as a souvenir.

The cooperative’s first workshop was held in a friend’s sitting room. Now, they share a workspace along with another cooperative provided by the BDSC. “I am also attending marketing classes at the center, for the first time I can actually make a living out of all the things I have learned,” said Naazly.

The BDSC is providing a unique professional opportunity for women, the majority of whom don’t work in the Maldives’ lucrative tourism sector due to social and religious expectations. Of the BSDC trainees, 40% have been women.

Hurdles and Opportunities

In a country that creates very little, starting a project like this had not been easy, stakeholders said. Imad and Raniya said bureaucracy and administrative work had proved to be very difficult in the initial phases. “We had to go for a change of mindset on the way people do business,” says Raniya.

But change can be a difficult lesson. “Market needs, tourist needs, we had to teach people to take this into account,” explained Raniya. Speaking of a popular Maldivian snack common in most cafes, Imad identified customer control of food as a new concept. “We can do frozen short eats, so that a person can grill it or fry it when they want to eat it,” said Imad.

A total of 60 new businesses have been started via this project, including set up of businesses and cooperatives for agriculture, arts, crafts, hydroponics, aqua culture, food processing and packaging, wood carving and goat rearing.

PADI open water certificates have enjoyed new popularity–80 locals signed up for the course. “The demand was overwhelming and we couldn’t accommodate everyone,” said IMAD. “We asked the participants to bear 20% of the costs while the government bore 80%.” Maldivians with PADI training is expected to be a huge asset to the mid-market tourism envisaged by the government.

Meanwhile, barriers between locals and resorts persist. “locals would complain that resorts had no interest in buying their product, while resorts would complain about the quality and consistency,” Raniya said.

To bridge that gap and achieve success, MED joined efforts with the Ministry of Agriculture, the Ministry of Tourism, UNDP and the International Fund for Agricultural Development (IFAD).

“We also had a lot of help from Women’s Entrepreneurs Association, especially its former president late Aiminath Arif,” said Rainya.

MED will provide ongoing support to the small businesses via the BDSC in each region according to Raniya. “We will help draw up contracts and facilitate talks between the businesses and buyers. We also have introduced a loan scheme of 3 million dollars, for which we have already identified 40 beneficiaries.”

A bill that has been submitted to parliament could end up giving a huge boost to the newborn SMEs and change the face of the souvenir market in Maldives, which is at the moment flooded with foreign products. “If the Micro, Small and Medium Enterprises Act is passed, within 3 years 50% of products in all souvenir shops should be local,” said Raniya.

‘Made in Maldives’ could become a common thing, enabling Naazly and dozens of others like her to make a profitable business. Imad said, “We want to see a day where Maldivian local delicacies, could be marketed like Swiss chocolate.”
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Hubasaana 2011 festival will be held Maradhoo Feydhoo Social Centre in Addu city on 20-22 Oct 2011, at the SAARC Summit in Addu City from 8-10 November, and in Hanimadhoo of Hdh Atoll from 1-3 December.

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J Hotels and Resorts awarded mid-market tourism project in Laamu Atoll

The Tourism Ministry has awarded the ‘Asseyri’ project to develop mid-market tourism in Laamu Atoll Gan to J Hotels and Resorts, reports Haveeru.

J Hotels and Resorts – owned by former MP Abdulla Jabir who has announced that he will be running for chairperson of the ruling Maldivian Democratic Party (MDP) – was chosen among three bidders for the project, according to a Tourism Ministry official.

The project involves developing a 25 hectare area with 1,500 beds, including a 300-bed hotel and 79 guest houses, as well as spas and sports facilities.

State Minister for Tourism Thoyyib Mohamed previously told Haveeru that while the government preferred a private party to develop and manage the whole project, the ministry had a ‘Plan B’ to lease out separate components of the project to different parties.

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Addu council looking beyond single island resort model for mid-market push

Addu City Council has announced plans to kick-start a project aimed at attracting mid-market tourism to the region in a change of policy from the country’s established one resort per island policy.

Following in the footsteps of developments on the island of Gan in Laamu Atoll, Addu City authorities have said they will develop areas of the city as a Asseyri (Beachside) Project.

The project represents a tourism development plan by which guest accommodation, alongside recreation and entertainment facilities, will be developed in a specific area with each commercial component being rented out to different parties. The system differs from the country’s established tourism model that has generally been based on a single enterprise operating a resort property exclusively on a designated island.

The announcement of the Addu City project follows a cabinet decision made earlier this year to create an integrated tourism development policy.

“We have identified the areas we want to develop for the Asseyri project, and we have sent the proposals to the Tourism Ministry for approval,” says Abdullah Sodiq, Mayor of Addu City.

The two areas ear-marked for development under this project are the Maafishi Area of Hulhumeedhoo Island and the start of the Hankede area, Hithadhoo.

Diversification

Moving away from the existing one island, one hotel tourism product, an Asseyri project aims to open up venues to allow larger numbers of local entrepreneurs to participate in the Maldives’ lucrative tourism sector.

The project will also open up doors for budget and mid-market tourists to visit Maldives, diversifying the Maldivian tourism product, according to developers.

A pilot Asseyri project was launched by the Tourism Minister Dr Mariyam Zulfa in Gan in March. According to the proposed plans, two 300 bed hotels, 69 guest houses, as well as a number of restaurants, spas and sports/recreational facilities will be developed on the 25 hectares of land located on the western beach side of the island.

In trying to emulate the Gan project, Mayor Sodiq said “the Addu Assyeri project will also be a multi-owner project; with lodgings and other facilities like restaurants, spas and sports areas each being owned by a different enterprises.”

The proposals for the Addu project have now reportedly been drawn up and sent to the ministry for approval.

“The tourism ministry shared with us the details of their ongoing project at Gan and has been very supportive of our maiden venture into this area,” Sodiq said.

Addu City Council hopes the project will give a boost to the local economy by creating more job opportunities and helping with aims to increase the GDP of Addu Atoll within the next three years. It will also attract more visitors to the city which is already home to properties like Shangri-La’s Villingili Resort and Spa.

Finding developers

Tourism authorities in the country have also pledged to try and assist the Addu City beach-side developments.

“We are holding discussions with Addu City Council to plan their Asseyri project,” says Moosa Zameer Hassan, Deputy Director General at the Planning Department of the Ministry of Tourism, Arts and Culture.

Hassan added that the Tourism Ministry was currently working to change its approach to the Gan Asseyri project after evaluating project proposals that were submitted ahead of a June deadline.

“We received two proposals, one from a local company to do the water and sanitation component of [the project], the other from a foreign company to develop the hotel component. At present we are negotiating with both parties,” Hassan said. The initial idea for the project was to try and find a party interested in the total development of the whole area and to lease out the different components of it afterwards, though tourism authorities are now reviewing this.

“The area is very big that might be the reason [for the review]. So now we are going to put out a tender for the development of hotels and guest houses, and hold discussions with the local council for them to rent out the land plots for other components of the project like restaurants, spas, recreational facilities and such,” Hassan claimed.

Aslam Moosa, a representative for Gan Island Council said he and his fellow members had been kept in the dark regarding the project.

“Yes, I have seen the area marked on the map, and heard the announcement for the proposals, but nobody has held discussions with us on the project,” he added. Moosa claimed that the council was presently only involved in the development of a 300 bed hotel by an Indian Company in Gan.

Hassan confirmed that discussions have not been held since local councils were elected. in February. “But we hope to hold discussions with them and to be able to rent out plots of land within two months,” he said.

While the tender for hotels would be open to foreign parties, bidding for running guest houses will be only for locals, Hassan stressed.

“Guest houses have always been protected investments just for locals. By law, the Tourism Ministry’s involvement is vital as guest houses and hotels can only be leased by them. The ministry does not envisage giving priority to residents of the Atolls involved,” he said. “Bidding for guest accommodation will be a process open to all Maldivians. Though local councils can decide if they will prioritise residents of their island in the bidding for involvement in other components of the project.”

Meanwhile, Addu City Council has said it is finishing up the administrative work for the Asseyri project and would soon be drawing up the final plans.

“We are very confident that our proposed plan will be approved by the ministry. It will be well regulated, we will assign land areas and have a limit on the height of the buildings.”

The tentative date to complete the tender for the Addu Asseyri project is by September. However, Sodig says actual physical work on the project will be put off until December, to enable the scheduled 17th South Asian Association for Regional Cooperation (SAARC) summit to go without any hitches.

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