Tag: minivan

Confusion over Sri Lankan fishing vessel traffic a political red herring: Zuhair

The government has confirmed that no specific agreement has been signed with Sri Lanka allowing Sri Lankan fishing vessels to cross Maldivian waters enroute to the Arabian Sea.

Maldivian Foreign Minister Ahmed Naseem said yesterday that the only development of note with Sri Lanka’s External Minister was the release of seven fishing vessels detained by the Maldives on suspicion of illegal fishing.

The confusion was sparked after an article published on August 5 in Sri Lanka’s Daily Mirror referred to a statement from the country’s External Minister Neomal Perera, claiming such an agreement existed so long as vessels gave 48 hours notice to the Ministry of External Affairs in Sri Lanka or the High Commission in the Maldives.

“[Local newspaper] Haveeru went to town when Fisheries Minister [Dr Ibrahim Didi] said no such agreement had been signed with Sri Lanka,” President Mohamed Nasheed’s Press Secretary Mohamed Zuhair told Minivan News today.

“The opposition seized it as an opportunity to whip up confusion and say the government had compromised the sovereignty of the Maldives – their latest favourite red herring.”

Zuhair said that on being informed by Haveeru that Sri Lankan’s External Minister had made such a statement, he had told the journalist that Sri Lankan fishing vessels – or the vessels of any nation – were already entitled to cross Maldivian waters as the Maldives was party to the UN Convention on the Law of the Sea (UNCLOS).

“The Maldives became party to it in 1982, became a signatory in 1994, and ratified it in 2000. It provides for ‘innocent passage’, and in the case of a fishing vessel requires that such gear be stowed,” Zuhair explained.

Article 17 of the convention states that “ships of all States, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea”, while Article 24 further states that a state “shall not hamper the innocent passage of foreign ships through the territorial sea except in accordance with this Convention.”

‘Passage’ precludes activities such as research surveys, military exercises, “serious” pollution and fishing.

“This may have been taken from an erroneous observation from the Minister during his visit,” Zuhair said, “but the Daily Mirror story is broadly correct, and I told Haveeru that this was permission [Sri Lanka] continued to have. The embassy needs a system where authorities can ID the vessel [to combat illegal fishing].”

The Ministry of Fisheries and Agriculture issued a statement yesterday strongly denying that the reported maritime agreement with Sri Lanka had been signed by the government.

While discussions about allowing passage for Sri Lankan fishing vessels through Maldivian waters had taken place on numerous occasions, “the Maldives has always said that foreign vessels could cross Maldivian seas only in accordance with Maldivian law.”

The press release explains that “innocent passage” was routinely granted for foreign vessels as the Maldives is signatory to the UN Convention on Law of the Sea but foreign fishing vessels without a license to operate in Maldivian waters are required to seek the ministry’s authorisation before entering the Maldives’ economic zone.

Moreover, the Ministry of Defence and National Security must be consulted before authorising passage for such vessels and the Fisheries Act “empowers the ministry to require monitoring systems in the vessels to locate its position through satellite.”

Parliament spent several hours yesterday debating the non-existent agreement with Sri Lanka, which led to a rare split in MDP ranks after MP Mohamed Musthafa vowed to submit a binding resolution demanding the government recall the ‘decision’ as “[Sri Lanka’s] intention is to steal our fish. I cannot just stand aside and watch while they take away our fish, which is the only source of natural resource we have in abundance. It is a right that has to be preserved for future generations.”

The issue quickly fell victim to the Maldives’ highly partisan politics, after head of the opposition Dhivehi Rayyithunge Party (DRP)’s fishing branch, Ali Solih, denounced the supposed agreement as “an insult to Maldivian fisherman” and “a dangerous deal,” as the Maldives did not have the capacity to monitor illegal fishing.

DRP MP Ali Saleem then proposed a motion without notice yesterday demanding that parliament “look into what is hidden behind this. Did you know that even if Sri Lankan fishing vessels traveling to the Arabian sea are carrying sharks or fish catch, there is no way to know because of this agreement signed yesterday?”

MDP Chairperson ‘Reeko’ Moosa hit out at the opposition for labelling Sri Lanka as “thieves” in the pursuit of local political gain, and claimed the allegation was “very irresponsible”.

MDP MP ‘Colonel’ Mohamed Nasheed suggested during yesterday’s impromptu debate that “it would be better for us to find out accurate information on the matter”.

The Sri Lankan High Commission had not responded to Minivan News at time of press.

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Maldives can learn from Seychelles economic recovery, says President Nasheed

The Maldives can learn from the economic and fiscal reform of the Seychelles in reforming its own stricken economy, President Mohamed Nasheed has said during his visit to the neighbouring island nation.

“Our fishing industry is worth about US$500 million a year. We want to see how we will be able to work with Seychelles on improving on its productivity,” said President Nasheed, following the meeting with his Seychelles counterpart President James Michel.

President Michel said small island states shared many similar challenges, “such as economic development, climate changes, fisheries, tourism, and piracy. We have many commonalities and we share the same ocean. We must do more to improve our regional trade and share our expertise, especially as we are both focused on fisheries and tourism, and in this way develop sustainable solutions to regional challenges,” he said.

The two countries have discussed developing a maritime company in the Maldives, and the possibility of developing a joint airline corporation.

During the delegation’s visit, President Nasheed was briefed by the Governor of the Central Bank of Seychelles, Pierre Laporte, on the economic reform strategies adopted in the Seychelles.

Not far from home

The Seychelles is an upper middle-income country that, like the Maldives, has enjoyed rapid growth led by a tourism sector that, after emerging rise in the 70s, now provides 70 percent of the country’s foreign currency earnings and 30 percent of its employment.

In 2006, the government of the Seychelles allowed its rupee to depreciate after years of allowing it to be overvalued – a similar situation to the Maldives, which earlier this year launched a managed float of the rufiya, within 20 percent of a 12.85 peg, which saw it rocket to the maximum 15.42 where it now remains.

The value of the Seychelles rupee plunged 10 percent in the first nine months of 2007, and the country was subsequently hit by the economic recession and a foreign exchange shortage – another problem familiar to the Maldives. This culminated in a debt crisis in 2008 that threatened the country’s comparatively high standard of living.

The International Monetary Fund (IMF) in its country report on the Seychelles (published in January 2011) commented that in the years following 2008, the Seychelles had “achieved a remarkable turnaround of economic policies, including foreign exchange market liberalisation and floating of the rupee” – achievements, the IMF noted, that were “all the more remarkable since the Seychelles had to confront at the same time a global crisis that lowered tourism receipts”.

The IMF’s 2011 report documents the remarkable economic recovery of a small island nation, during a recession affecting its core business. In particular, the report praised the Seychelles for renewing the confidence of private investors, “which translated into increased foreign direct investment to develop the islands’ exceptional tourism potential”, the stabilisation of the exchange rate, price stability, and the rebuilding of reserves “which offer room for more expansionary policies.”

Prior to 2008, the Seychelle’s overall deficit had reached 9.8 percent and the country was facing “an acute balance of payments” as public debt was predicted to rise a further 20 percent in two years. Ratings agency Standard & Poor – which this week lowered the credit rating of the US for the first time in history – had downgraded the Seychelles to “selective default”.

Several attempts to increase the value of the rupee against the US dollar had been unsuccessful, and did little to address the country’s foreign currency shortage – at the beginning of 2007, the rupee was officially valued at 6 to the US dollar, while the blackmarket exchange rate sat at almost double.

In late 2007 the government of the Seychelles devalued the rupee, setting the official exchange rate to 8 rupees to the US dollar. As in the Maldives following the government’s effective devaluation of the rufiyaa from 12.85 to 15.42 to the US dollar via a ‘managed’ float, the blackmarket in the Seychelles simply adjusted for the increase, settling at 13-14 rupees to the dollar.

In November 2008, the government of the Seychelles dropped its peg and floated the rupee against the US dollar. The rupee immediately leapt to almost 18, and remained substantially volatile for much of the next year. By late 2009 it had plunged to 10 rupees against the dollar, and a year later had settled around 12, where it remains.

Despite several concerns about the lack of diversification of the economy and the impact of piracy – the Seychelles coastguard rescued 27 hostages in March last year after firing 10,000 12.7mm rounds at the engine of the pirate vessel – the IMF describes the outlook for the Seychelles as favourable and predicts medium term growth of five percent as the country’s tourism industry expands and promotes itself outside traditional markets.

“The Seychelles’s stabilisation success offers perspectives for a less painful path toward fiscal sustainability, but caution is needed to maintain external stability and growth prospects,” the IMF noted.

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Police arrest man on suspicion of brewing alcohol

Police have arrested a 22 year-old man on suspicion of brewing alcohol, reports Haveeru.

Ibrahim Ali was arrested in the woods of Thuraakunu on Haa Alif Atoll on Thursday evening, in possession of a kerosene stove, equipment used to brew alcohol and 20 litres of suspected ingredients.

Police are continuing to investigate the matter.

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Comment: Gayoom and Nasir unlikely to face their Mubarak moment

A large screen set up outside the court premises streamed images of historic trial from within, while a banner under it proclaimed ‘O Judge of Judges, you have nothing to fear but God!’

Inside the building which once bore his name, former Egyptian dictator Hosni Mubarak pleaded not guilty to charges ranging from graft to “intentional killing of demonstrators” during the January 25 uprising that toppled his regime.

Lying on a stretcher, inside a specially built cage within the same building where, less than two days before the revolution started he had addressed his security forces whose support he enjoyed during nearly three decades of absolute power – he pleaded not guilty on all charges.

Recordings of his not-guilty plea in Arabic – “I categorically deny all charges” – have reportedly become popular ring tones, and images of the once powerful dictator inside a metal cage are being circulated widely on Internet groups.

Mubarak’s trial marks the first time in recent memory that the leader of an Arab nation – long accustomed to ruling until they die or are assassinated – has been made answerable to his own people for alleged abuse of power.

Over 850 people died in the 18 days of uprising early this year, before he stepped down.

In fact, the presiding Judge asked a lawyer at one point “Could you write down the (victims) names, or will it take hours?”

Even as Mubarak fights charges that carries a possible death sentence if convicted, many would agree that even in the scenario of his being acquitted, the dictator’s fall from grace is complete, and that this trial ultimately only provides catharsis and a warning to his embattled peers elsewhere in the middle east.

Images of his trial may aggravate the situation in Saleh’s Yemen, Gaddafi’s Libya, and Assad’s Syria, where authoritarian despots are clinging to power hoping to last through the unabated turbulence of the Arab spring.

It is quite possible that these dictators would blame Mubarak’s current predicament on his softness, and relatively quick exit from power – a mere 18 days after crowds assembled in Tahrir Square. With the stakes now even higher, these regimes might resort to a violent fight to the finish, unless they can be coerced into catching a flight to Jeddah.

At least 1700 civilians are believed to have been killed in Syria since uprisings began, and estimates range between 2000 to 12000 killed in Libya, with no signs of the an end to the rebellion.

While the Mubarak trial holds special symbolic meaning for the Arab people, it also holds some significance in the Maldivian context.

It was, after all, from the halls of Egypt’s Al Azhar University that former President Maumoon Abdul Gayoom emerged.

When democracy arrived in the Maldives after a prolonged period of public protests, many expected Gayoom to be prosecuted – and his political cronies to be put on trial.

Throughout the democratic uprising, after all, opposition leaders had publicly accused President Gayoom of a wide spectrum of allegations ranging from corruption to torture.

However, Gayoom continues to be a free man, and no charges have yet been brought against him by the first democratically elected government.

It might be that despite the alleged excesses of his former government, Gayoom continues to hold a massive sway over a significant portion of the population, as evidenced by the 40 percent of votes he garnered in the first round of the Presidential polls.

President Mohamed Nasheed has stuck to his stated stand of ‘humility in times of victory’, and while there still remain occasional calls for Gayoom’s arrest from parliamentarians like “Reeko” Moosa, the public attention has long since shifted to more immediate matters of a weakening economy and dollar shortages.

Gayoom’s predecessor, President Ibrahim Nasir had also modeled himself after Colonel Gamal Abdel Nasser of Egypt, a modernist with dictatorial tendencies.

After he became the First President of the Second Republic, Nasir was the hero of the Nation’s independence.

However, during his earlier stint as Prime Minister, Nasir’s heavy-handed tactics such as personally leading gunboats to forcefully depopulate Thinadhoo in 1962, in the aftermath of the southern rebellion, has been condemned by many as being especially ruthless.

Nasir never stood trial in a public court. Following Gayoom’s ascent to power, Nasir lived out the rest of his life in exile in Singapore.

Nasir died a few days after the Gayoom regime fell, and was buried with his royal ancestors at the cemetery attached to the hukuru miskiy. Tens of thousands paid him their last respects, and a national holiday was declared in his honour.

He has recently been honoured again by the MDP government, which renamed the Male’ International Airport as Ibrahim Nasir International Airport in recognition of his efforts towards building it.

The news of the airport renaming was met with some disappointment by many Huvadhu islanders, some of whom still remember Nasir as the man who tore their families apart. Sounds of gunfire are still fresh in their memories.

Humiliating scenes of men being forced to step off their islands, supervised by the political strongman himself, continue to persist on the Internet.

It is increasingly likely that the alleged crimes and corruption of Gayoom and Nasir will never face their Mubarak moment. Furthermore, the government has so far given no indication of making a even a symbolic public apology for the southern outrage that was Thinadhoo.

While Mubarak’s trial assuages some of Egypt’s hurt and brings hope to rebels in the Middle East, it reopens some old wounds for many Maldivians, who feel justice has been denied to them.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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PA MP announces decision to leave party following coalition split

MP of the opposition-aligned People’s Alliance (PA) Ahmed Rasheed has announced on MNBC his decision to leave the party “to better serve the public as an independent.”

Rasheed, who spoke to the state broadcaster on Sunday, also said he was open to joining other parties “if it was within the public interest.”

The PA’s acting Secretary General Ahmed Musthafa however told Minivan News today that he was unable to confirm whether Rasheed had left the party: “We don’t believe he has moved. I saw him yesterday,” he said, adding that the party would issue a formal communication on the matter in the next few days.

“Maybe he has been pressured by another party such as the MDP to join, although I don’t think he will,” Musthafa said.

Once Rasheed officially informs parliament of his new status as an independent, his departure from the PA could force the committee composition to be revisited for a third time this session.

While the PA would be entitled to fewer seats, parliamentary rules dictate that Rasheed must be given a seat on at least one committee as an Independent.

MP Ahmed Rasheed represents the constituency of Isdhoo in Laamu Atoll, an area of strong opposition support that voted largely for PA candidates under its former coalition agreement with the Dhivehi Rayithunge Party (DRP).

The PA decided decided on July 13 to break the longstanding coalition agreement, after internal strife within the DRP saw the party split into factions loyal to its leader Ahmed Thasmeen Ali or the party’s ‘honorary leader’, former President Maumoon Abdul Gayoom.

Eleven of the DRP’s MPs met with other opposition parties, including the Jumhoree Party (JP), the Dhivehi Qaumee Party (DQP) and an independent MP to discuss the creation of a new voting bloc, one which could see the DRP’s majority control of parliament reduced to 13-15 MPs.

DRP MP Abdulla Mausoom raised concern following the split that the PA’s decision to break the coalition agreement would upset constituents in Laamu Atoll who “are very loyal to the DRP but voted for the PA tag.”

Z-DRP MP Ahmed Mahlouf responded that such islands “voted for the PA because President Gayoom asked them to do it. Even now Zaeem (Gayoom) is with the PA, they are working together. Voters in Laamu didn’t vote for Thasmeen – they voted for Gayoom.”

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BML records 40 percent increase in half-yearly profits

The Bank of Maldives (BML) has recorded a significant increase in operating profits of almost 40 percent in the first half of 2011, according to half-yearly results released yesterday.

Notably, the bank’s operating profits for the second quarter of 2011 were Rf 132,201,055 (US$8.57 million) in the second quarter of 2011 compared to Rf 79,872,266 (US$5.17 million) for the same period in 2010.

BML said in a statement that the total profits would be allocated to cover loan loss provisions in the second quarter of 2011. The bank will also not issue dividends to shareholders this year.

The bank also announced the launch of a business transformation programme that will see it evolve into a financial services institution “with a stronger focus on customers and service provision”.

International human resource consultancy firm Hunter Roberts, which has worked with major UK banks including Barclays, had been appointed to develop effective employee policies and provide staff development, BML said.

Speaking to Minivan News in April following his appointment, BML’s new CEO Peter Horton identified service provision as a particular area of improvement for the bank.

“I think this business grew very rapidly, not just the loan base but in terms of customers, especially if you look at what BML was 10 years ago,” he said at the time.

“That goes some way to explaining why we have such big queues in the banking hall. When I came out for my interview I took the time to walk around Male’ several times – and go in very incognito to see the BML branch. I have to experience what the customer experiences, and I don’t think that experience is what any of us want.”

Horton spent 15 years with Barclays in the UK before moving to Africa to run the bank’s corporate turnaround teams, where he became experienced in dealing with distressed portfolios and problem lending. Speaking to Minivan News in April, he identified BML’s high non-performing loan problem as a key impediment to the bank’s performance, noting that it not only had a carrying cost “but it also creates a certain mood around the business internally and externally.”

Horton also worked in the offshore finance field with a subsidiary of the Canadian Imperial Bank of Commerce in the Bahamas, and has championed the potential for the Maldives to develop an offshore finance sector.

“If you look at the world’s emerging economies, which are moving West to East, our proximity to India and to a lesser extent Sri Lanka, and with direct flights to most South-East Asian cities, should be a huge advantage for us,” he told Minivan News.

“The majority of offshore banking centres do rely on imported people and institutions. They are truly migratory these days. We are in a global economy now where things move overnight, so if you were able to do the things to attract people, it is very, very doable.

“The other thing is having sufficient protection around the business – having a strong regulator, a strong legal system, and probably some degree of monetary protection. If a private bank is bringing dollars into the country, there needs to be some degree of certainty that the dollars can sit in the country quite safely,” he said.

The Maldives Inland Revenue Authority (MIRA) has meanwhile announced a 13 percent increase in bank profit taxes collected in 2010 revenue. The country’s six banks paid Rf 226 million (US$14.65 million) in taxes, it said.

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Tourism boost from Baa Atoll’s UNESCO status a management challenge

The designation of Baa Atoll as a UNESCO World Biosphere Reserve is a significant achievement for the Maldives but makes proper management all the more imperative, government organisations and environmental NGOs have said.

Baa Atoll was last month added to the UN body’s global list of biosphere reserves, placing it in the company of world famous sites such as the Komodo in Indonesia, Uluru (Ayer’s Rock) in Australia and the Galapagos Islands.

The listing recognises “where local communities are actively involved in governance and management, research, education, training and monitoring at the service of both socio-economic development and biodiversity conservation,” UNESCO said in a statement.

It has also prompted a surge of tourism interest in Baa Atoll, requiring local bodies to balance the impact and sustainability objectives of the biosphere with the new income.

Director of the Environmental Protection Authority (EPA) Ibrahim Naeem said it took five years of lobbying for Baa Atoll to become the first globally recognised biosphere in the Maldives.

“The whole atoll has been zoned into three categories, limiting activities conducted there,” he explained.

‘Core areas’ account for 10 percent of the atoll with no extraction activities permitted – “look and see only”, Naeem explained. Buffer areas limit some activities while transitional areas allow most activities if conducted in a sustainable fashion.

Exceptionally unique areas, such as Hanifaru Bay, have a management plan to limit access, Naeem explained: “We allow resorts and safari boats to visit Hanifaru Bay on alternate days to avoid conflicts,” he said, adding that the EPA had appointed a ranger to monitor vessels in the area and was training several more to cover the rest of the atoll.

At the beginning of the process many locals expressed reluctance about the atoll being designated a biosphere, fearing that their traditional fishing areas would be restricted, he acknowledged.

That concern still exists, says Ahmed Ikram, Director of Environmental NGO Bluepeace.

“Local divers and other groups are concerned that these places will become so protected and so exclusive that locals will be unable to access them,” he said. “We have started to hear concerns that these sites will be cordoned off to the public, with access controlled by resorts and limited access for independent dive companies and safaris.”

Local people needed to be trained as rangers, guides and attendants, and NGOs, island womens’ committees and fishermen needed to be involved in decision-making, Ikram said.

“The EPA has handed the management to the Baa Atoll council, but without any capacity building,” he claimed, while resorts sponsored “greenwashing” campaigns to fulfill their corporate social responsibility objectives, protecting their house reefs and excluding local communities.

“The reefs around resorts are some of the most protected in the Maldives. Why are the house reefs of local islands not being protected too?” Ikram asked.

In some cases tourism authorities had failed to take into account traditional bait fishing grounds when leasing islands for resort development.

“If they fall in the vicinity [of the resort] the fishermen will still go there to fish, as they have done so for thousands of years – it would quickly become a national issue if they were stopped,” he said, adding that climate change had also affected many of these areas forcing fishermen to harvest bait elsewhere.

“Already in some areas climate change has meant that fishermen are having to dive 40 metres to get bait,” Ikram said. “We need to remember than man is part of the ecosystem.”

Deputy Environment Minister Mohamed Shareef told Minivan News that the Baa Atoll management scheme would include the creation of revenue mechanism for the community whereby, for example, “one dollar from each dive goes to fund the needs of the local community.”

The management process, he said, was participatory, and for the locals, “absolutely nothing has changed. Local fishing practices and the manner of living is very sustainable, from knowledge generated over many years.”

Baa Atoll is home to 12,000 people distributed across 13 populated islands and six resorts. The atoll is one of the most biodiverse in the Maldives with high concentrations of manta rays, whale sharks and turtles, and a number of species of coral and sea slugs unique to the area.

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STO lifts price controls on onions, potatoes, eggs

The State Trading Organisation (STO) will lift price controls on potatoes, onions and eggs, as well as rationing the commodities on a per-head basis.

“We’re trying to lift the control tomorrow as we received a new shipment of the goods last night which is being cleared from customs,” Managing Director Shahid Ali told Haveeru.

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Out on a wing: Mega bets on Chinese market

The shifting demographics of the Maldives tourism industry presents new challenges – and a great many opportunities – for the country to grow as a destination, says CEO of new Maldivian flag carrier Mega Maldives, George Weinmann, during a ceremony in Male’ this week to mark the airline’s launch of direct flights to Shanghai and Beijing.

Since its maiden flight between Gan and Hong Kong early this year, Mega has focused on the country’s booming Chinese market. Chinese visitors last year showed the highest number of arrivals over more established markets, and were widely credited with insulating the Maldives from the effects of the economic recession afflicting the UK and Europe.

Weinmann emphasises that “while the Chinese market is now the number one market for the Maldives, is still not a mature market.”

“The agents in China don’t know the Maldives as well as the European agents who have been coming here for 30 years,” he explains. “The new agents are often asking us for help finding hotel rooms, and negotiate with the hotels – it’s not really our job, we’re an airline and there’s plenty of travel agencies on both sides – but oftentimes they aren’t connected. There have been incidents in the past where certain agents get very excited and think they can just fly their guests here, only to find there are no hotel rooms for their guests.”

Without intending to become a travel agency, the airline had found itself becoming an intermediary between the Chinese tour operators and resorts, he says, many of which are still getting to grips with the unique demands of the new market.

“We talk to resorts that are suffering with occupancy, perhaps 30-40 percent,” says Mega’s Marketing Director Ali Faiz, “and see how we can help each other. We also meet with resorts that are popular with the Chinese market and offer our jet to help them sell the Maldives.”

Whereas European guests tend to stay up to two weeks at resorts, the current trip pattern for Chinese visitors is very short – “four nights, five days,” says Weinmann.

“They are much more activity focused – a little less sun and sea, a little more doing things on a boat,” he says. “Like every other market they are very food conscious – but the type of food they are looking for is different, which for instance affects how we cater for inflight meals –  although everyone likes ice-cream,” he adds.

Moreover, “as someone who has lived in China for seven years – they are huge spenders. The Chinese love to buy things. One complaint they may have with the Maldives is that there is not enough stuff to buy – they come here often with large wads of money and then go home with it. That’s an opportunity for local businessmen.”

The market is also rather risk adverse, which the fledgling airline found to its detriment in May when Hong Kong authorities issued a travel warning for the Maldives, triggered by excitable global media coverage of opposition-led protests in Male’.

“That was a near tragedy for us. We almost didn’t survive that period,” Weinmann acknowledges. “It came at the same time as changes on our side with pricing, and we almost lost the entire month of May because people who had been intending to go to the Maldives but hadn’t yet bought their tickets decided not to go.

“There was very low additional sales in May. Those people who had already bought their tickets – who had spent hundreds of dollars on rooms – couldn’t get that money back so they came anyway, and of course there were no problems. But when a warning like that goes out, anybody who has the discretion to choose not to buy, to choose somewhere else or postpone their trip, will do so. It doesn’t matter if it’s a yellow, red or black warning – it’s a huge hit. Just ask people in Thailand about what they experienced during their local turmoil. It is a roller-coaster ride in terms of bookings.”

Mega worked with resorts and the government to try and reassure visitors that the protests were limited to a few streets of the capital city – which few visitors to the country even set foot on.

“Recovery takes time,” Weinmann says. “When the incidents are over, then you have to go out and educate the market and tell all the travel agents what is going on. For a market like China that is growing as fast as it is, they do have other choices, and they are not as comfortable with the Maldives as the European market, which sees such incidents as a small bump in road.”

“We did obviously recover,” he adds, “because we launched Beijing-Shanghai a couple of months later, and that’s been very successful.”

Mega subsequently decided to introduce free cancellation insurance for every ticket, covering the first night of accommodation in the event of a delayed flight, which Weinmann explains was a way of offsetting the non-negotiable cancellation policies of many resorts in the Maldives.

“It’s one of the biggest issues in the Asian market right now,” he said. “We are competing against other Asian markets such as Bali and Thailand, and other island destinations such as Guam that are developing very fast, and in many of these countries hotels don’t have the kind of cancellation policies that exist in the Maldives. It makes it more risky for tour operators to sell the Maldives – we’re trying to eliminate that risk.”

Weinmann believes the Maldives also has room to grow existing markets, and said Mega hoped to launch flights to so-called ‘tier 2’ cities and stimulate growth in places such as Eastern Europe.

Korea also has more potential, he explained, noting that Mega would introduce a flight to Seoul in September.

“There are current five wide-body aircraft flying between Korea and Hawaii every day. That’s a nine hour flight, and the Maldives is probably a little cheaper.”

India, on the Maldives’ doorstep, was exactly two years behind China he predicts.

“But it’s a challenge that regulations prevent a Maldivian carrier flying more than 200 seats to Mumbai or Delhi. We have 250 seats, and we’d like to change that.”

Cargo imports are another growth opportunity, Weinmann says, announcing 15 discounted tickets to kickstart a trade delegation of Maldivian traders and businessmen to find opportunities in China.

“Right now all the cargo coming into the Maldives goes through Sri Lanka, Singapore or Dubai,” he explains. “Not much is produced in these locations, it’s all coming from somewhere else – a lot of it from China. We want to increase direct imports from China which should mean less cost and cheaper prices, as there will be less middlemen involved.”

Meanwhile, the airline has begun recruiting more Maldivian cabin crew, in addition to the two classes already through, and is currently training six Maldivian pilots and soon, engineering cadets. Weinmann predicts the company will employ over 100 Maldivian staff by the end of the year.

“We not doing this just because we want to, but because it’s the right thing for the airline. We think Maldives aviation can grow a lot further,” he says.

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