President Waheed concludes trip to eight islands of Shavyani Atoll

President Dr Mohamed Waheed Hassan has concluded a trip to visit the islands of Shavyani Atoll today. Waheed visited eight islands of the atoll, including Feevah, Foakaidoo, Funadhoo, Narudhoo, Maroshi, Lhaimagu, Maa’ungoodhoo and the island of Kommandoo.

Minivan News understands that groups of Maldivian Democratic Party (MDP) protesters met Dr Waheed at all islands apart Foakaidhoo.

During his visits to the islands, the new president checked on the ongoing development projects in the islands and met with the people. President Waheed began his tour from the island Feevah, last Thursday.

During his visit to Feevah, Waheed reaffirmed to the islanders his commitment to take all necessary measures “to protect and safeguard the people”.

Speaking to the people of Foakaidoo, Waheed said that he would work to restore calm and peace in the country. Waheed also said that he assumed office to bring the much needed political stability and progress to the country.

He also announced that his government would establish a new ministry addressing issues related to women, children and human rights, and acknowledged that a number of women were unpaid for their work in cleaning or the general upkeep of their islands. He promised his government would pay all the wages owed to such women.

Waheed in during his visit to the island of Funadhoo inaugurated the Funadhoo Powerhouse Development Project by laying the foundation for the extension of the powerhouse.

On Narudhoo, he urged school principals, supervisors and teachers to refrain from politicising the education system, and appealed to them stay away from getting caught up in politics.

In his address to the people of Maroshi, Waheed called on the people of the Maldives,to have faith and respect for the state institutions, in order for the country to maintain its nationhood.

He also claimed that there was “a small minority” who did not accept the judiciary, the armed forces, the police, or the leaders of the country, and that they were “only trying to create division and disorder among the people.”

Waheed in his meetings with the islanders on Lhaimagu, assured that his administration would treat all citizens equally, as opposed to the policy of the previous government.

He said that his government includes all major political parties and that this government was a national unity government. He also expressed regret that former president Nasheed’s Maldivian Democratic Party (MDP) chose not to be part of the unity government which had the backing of majority of the people. Instead of joining the government, he said, former President Nasheed was trying to “come back to power through force”

While addressing the people of Kommandoo, Waheed said that he would “remain steadfast in fulfilling the responsibilities under the Constitution and under the mandate given by people’s votes”.

President Waheed concluded his trip after visiting the island of Maaun’goodhoo. Speaking to the people of Maaun’goodhoo, he said that today we are all under the shade of our dignified red, green and white flag, putting forth a front of unity for the future of our country, regardless of the political parties we belong to.

During this visits, supporters of former president Mohamed Nasheed had protested against Waheed and claimed that his government came to power and called for an early elections. However, speaking to Minivan News, Press Secretary of the President’s Office, Masood Imad said that there were “very few” protesters, who were “not an issue” for President Waheed.

President Mohamed Waheen Hassan arrives on Komandoo:

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Criminal Court extends detention of 61 arrested protesters

The criminal court has extended the detention period of 61 protesters arrested on Thursday, in opposition to President Mohamed Waheed Hassan giving the presidential address to open the first session of parliament.

Police had arrested 67 protesters on the day, but released six of them later. Minivan News understands that those detained include former President Mohamed Nasheed’s brother, Nazim Sattar.

The Maldivian Democratic Party (MDP) called on police to immediately release of the detainees last night. MDP in a press statement stated: “The families of the detained are extremely concerned and some of the families have suffered psychologically following the arrests of the detainees.”

MDP also called on the courts to make their judgements freely and impartially to ensure the people’s trust in the judiciary was not tarnished any further.

“The detention extension issued by the courts regarding the protesters who had been arrested was against legal principles,” said member of MDP’s legal team and Chairman of the MDP Legal Affairs Committee, Ahmed Abdullah Afeef, in a press conference held by MDP on Friday night.

Afeef also stated that the detention extension had been carried out “unfairly”, and alleged that the whole process had been “pre-planned” before the protesters were even taken into the court.

“Police had no evidence to prove to the court that there was a legitimate reason to extended the detention periods. The actions of the criminal court imply more of a personal vendetta rather than an impartial decision,” said Afeef.

Afeef observed that during protests that took place during December 2011 under Nasheed’s government, police had sought the detention of several protesters, providing photo and video evidence proving attacks on police, but the criminal court had rejected it and released those detained.

Afeef said that the party would appeal the decisions of the Criminal Court and said the case would be filed in High Court today. Afeef also added that High Court has said that they will hold a hearing today.

Speaking to Minivan News today at the High Court building, Afeef said: “What we are trying to say is that there maybe people amongst the protesters who should be arrested, but it has to be done based on evidence.”

“As a principle, the judge would not know what happened at the protests. Decisions from a judge should come based on evidence. Here in this case, the police could not provide any evidence, but yet still the judge issued the detention extensions,” he said.

Sub-Inspector Ahmed Shiyam told Minivan News today that 61 people arrested during the protests are in police custody, “all of them had arrested attempting to break through police lines, or attacking police officers. We have evidence and the investigation process is going on currently. We will submit that evidence to the authorities as well,” Shiyam said.

Fourteen police officers were injured on Thursday in skirmishes with demonstrators, some of whom threw rocks at officers. Four were seriously injured, and one officer was flown to Sri Lanka for further treatment.

Minivan News also observed police in riot gear cracking down protesters near the Reefside Shop in Chaandhanee Magu, without advance notice. Three protesters were taken into custody at the scene.

Questioned about the incident, Shiyam said that the people who are currently arrested were those who had “attacked the police officers”, that the others had been released.

The High Court was yet to announce the appeal hearings at the time of press.

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Roadmap parties agree on agenda, order of preference to follow: Mujuthaba

President Mohamed Waheed Hassan’s nine-party “Roadmap” talks – an attempt to diplomatically resolve the current political crisis – have resulted in a series of agenda items, mediator Ahmed Mujuthaba told media today.

“We held the first meeting on February 20, but unfortunately because one of the relevant parties (the Maldivian Democratic Party) was not present we could not continue with the meeting. So we just had some informal consultations on that day,” he said.

The MDP initially boycotted the first round of talks – initiated by Indian Foreign Secretary Ranjan Mathai – “when it became clear that the talks were to include political parties with no democratic mandate, and that they would focus on procedural issues such as the timing and venue for future talks – a clear effort to delay substantive discussions,” the party said at the time.

MDP’s Parliamentary Group Leader MP Ibrahim Mohamed Solih has since represented the MDP at the talks.

On Tuesday afternoon, Mujuthaba said agenda items had now been agreed, although the order of preference remained under discussion. The items, he said, were:

  • Which laws have to be amended, and what new laws are needed.
  • Discuss and determine the changes that need to be brought to independent institutions and independent positions in the Constitution
  • To discuss amendments that need to be brought to the Constitution
  • To determine a date for the next Presidential elections
  • Find out the present condition of the budget
  • How to have the March 1 Majlis opening proceed in a peaceful manner
  • How can to tackle and solve the present discord in Maldivian society

Speaking to the press, Mujuthaba acknowledged frustration at the speed of the talks.

“I am not happy at the speed of this. I would wish today or tomorrow that there would be some kind of agreement,” he said.

Asked his opinion as to whether early elections – the MDP’s primary demand – were a likely outcome of the talks, he replied that “until a time when I can say really there is a deadlock I don’t want to give up hope on any option in this agenda.”
He acknowledged concerns from the MDP over the composition of the talks and whether the other parties in attendance had a democratic mandate, but said this had only been raised with him minutes before commencement of the first meeting on February 20.

“I said look, you can come to the meeting and say these reasons. It would have been better if you had told me [earlier]. What you say is probably right, but I wish I knew about it before the first meeting,” Mujuthaba said.

Mujuthaba was a former Tourism Minister and was the first chairman of the Human Rights Commission of Maldives (HRCM), appointed by former President Maumoon Abdul Gayoom.

Dr Waheed appointed him to chair both the roadmap talks and to the government’s independent inquiry into the circumstances of the change of power. Mujuthaba subsequently excused himself from the latter.

“From the way these discussions were going I thought there would be a terrible conflict of interest if I was involved in both at the same time,” he noted. “Better to concentrate on one.”

Solih said Tuesday evening after another round of talks that no agreements had been reached.

The MDP has meanwhile maintained that it will escalate protests until an early election date is declared. Despite the present calm, both the resultant political stalemate and the prospect of chaos when parliament resumes remain a key source of tension in the capital Male’.

Minivan News understands that Indian Foreign Secretary Ranjan Mathai briefly visited the Maldives today for the second time since the political crisis erupted on February 7.

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Maldives government changes in dramatic scenes after police elements join opposition protest

Vice President of the Maldives Dr Mohamed Waheed Hassan has been sworn in as President of the Maldives following the resignation of President Mohamed Nasheed in dramatic circumstances at 1:00pm today (February 7).

President Mohamed Nasheed appeared on ‘Television Maldives’ (TVM), and issued a brief statement this afternoon:

“I resign because I am not a person who wishes to rule with the use of power. I believe that if the government were to remain in power it would require the use force which would harm many citizens. I resign because I believe that if the government continues to stay in power, it is very likely that we may face foreign influences.

“I have always wished the citizens of this country well, now and into the future. I have made this decision and I wish for your prosperity in this life and the life after.”

The President’s resignation comes after elements of the police and 60-70 officers from the Maldives National Defence Force (MNDF) sided with opposition protesters and attacked the MNDF headquarters early this morning.

Minivan News at 8:00am on February 7 observed a group of 400-500 opposition protesters, interspersed with blue-shirted police officers, assaulting the MNDF building in Republic Square.

At the height of the violence there appeared to be no police riot control presence in the square. Military forces with riot shields held back the crowd at while soldiers in gas masks used grenade launchers to fire tear gas canisters from the turrets of base into the crowd.

“This government is over!” yelled a middle-aged man in a shirt and tie, dodging a tear gas canister. Several confronted Minivan News.

Younger rioters threw water bottles and rocks at the building, breaking windows. Another picked up a tear canister and attempted to hurl it back into the compound.

There were mixed reports that the military used rubber bullets to control the demonstrators. Minivan News only observed tear gas canisters being fired as of this morning, and the government at the time denied using rubber bullets.

The wind quickly dispersed the tear gas in the large open area, blowing south through the city.

Outside the main square the streets were as calm and quiet as a typical Male’ morning, as the school run began. Students walked through the hazy streets south of the square holding their clothes to their faces, and were handed water and paper towels by teachers at school gates.

At 10am this morning Minivan News observed military units protecting the President’s residence, and sirens as police units from other parts of the city converged on the square.

A government spokesperson this morning confirmed that “some elements within the police have not obeyed orders, and military and police are working to restore order.”

“The opposition has been calling for the police and military to mutiny and join the mob in bringing down the country’s first democratically elected government,” he said.

Opposition protesters and police supporters subsequently took over the Maldives National Broadcasting Commission (MNBC) and began streaming VTV over the station. The channel was later rebadged ‘TVM’, its name under Gayoom’s government. Opposition party leaders and MPs are giving interviews on TVM, interspersed with patriotic songs, news reports and live footage of Nasheed’s resignation and the Vice President’s appointment.

Subsequent to the rebranding of TVM, a government spokesperson told Minivan News the Maldives was in the throes “of an attempted coup”.

President Nasheed subsequently gave a press conference and announced his resignation.

Vice President takes over from Nasheed

Vice President Mohamed Waheed Hassan was sworn in as President this afternoon. Following his appointment Dr Waheed addressed the nation on TVM, and said he was grateful to the police and MNDF who had made “great sacrifices” to defend constitution.

“Today is the day the rule of law has been established in the country perfectly,” Dr Waheed said.

“I will not order the police, military or any person to do anything against the law – I promise it to the public. Everyone will have the protection of constitution and laws.”

Dr Waheed also said the President and has family would receive protection under the law.

“I call upon all political parties, the Maldives National Defense Force, and the public that this is the time to put aside personal hatreds and jealousies, and prioritise to work for the interests of our nation. And I ensure that we will work to restore peace and prosperity of the nation, to deliver a harmonious and peaceful living to the people.”

Police attack MDP headquarters

A group of police, believed to be affiliated with a ‘starforce’ unit under the former government, reportedly refused to obey an order after dispersing a crowd of opposition protesters at the artificial beach last night.

Minivan News observed a group of protesters and police with batons running south towards the tsunami monument just after midnight, before returning to the artificial beach.

Shortly afterwards, a group of up to 10 people in police clothing attacked the MDP ‘Haruge’, headquarters, smashing some glass.

Following incident at the Haruge, a rogue police unit reportedly arrived in Republic Square and was monitored by MNDF officers. The police were reportedly joined by further officers.

Minivan News is currently seeking confirmation that the home minister was attacked in the violence last night. Former MDP Chairperson Mariya Ahmed Didi and senior MDP figures are reportedly being treated in hospital after a stab wound, and there were reports of both police and MNDF officers being treated for head injuries in hospital.

TIMELINE February 7:

10:40 – Minivan News has observed that a large group of MNDF officers have joined opposition demonstrators in Republic Square. The President was reported to be still in Male and under military protection. The opposition is claiming he has been arrested, but the government has disputed this.

10:45 – Many shops and businesses, including the Bank of Maldives, have temporarily closed branches in Male’.

11:01 – A government source confirmed that they were aware that a number of MNDF personnel had joined the demonstrators. Minivan News observed 60-70 uniformed officers.

11:12 – Opposition protesters and rogue police have taken over the Maldives National Broadcasting Commission (MNBC) and are streaming VTV over the station. The occupiers have reportedly renamed it TVM.

11:22 – The headquarters of the ruling Maldivian Democratic Party (MDP) has been set on fire.

11:36 – The MNDF personnel who joined the protesters were reportedly given the opportunity to leave if they wished, but were forbidden from taking weapons.

11:41 – The opposition aligned protesters have been issuing President Mohamed Nasheed ultimatums to resign – Minivan News was told 11:30am and 2:30pm by different sources.

11:47 – Government spokesperson confirms country is undergoing attempted coup, after state broadcaster hijacked.

12:13 – President’s office denies widespread reports that Nasheed has resigned. There is a press conference scheduled imminently at the President’s office.

12:32 – Minivan News observed no situation at the airport, contrary to earlier rumours circulating around Male.

12:54 – President’s Press conference is yet to start.

12:56 – MNBC is now showing as TVM, the name of the state broadcaster under President Maumoon Abdul Gayoom.

12:58 – Press conference has started.

1:19 – President Nasheed announces resignation, stating that his remaining in power would require the use of force against his own population, and he was not willing to do this “foreign influences”. Minivan News is currently clarifying his statements in English.

2:55 – Another press conference has been announced and is expected to start shortly.

3:00 – Vice President Mohamed Waheed Hassan is due to be sworn in as the 5th President of the Maldives, according to the rebranded Television Maldives (TVM).

4:38 – Vice President Mohamed Waheed Hassan is addressing the nation on TVM, praising efforts “police sacrifices” to protect the constitution and law.

5:00 – Chief Judge of the Criminal Court, Abdulla Mohamed, has been reported released.

6:31 –  The mood in Male’ remains tense. Maldivian Democratic Party supporters have been thin on the ground today.

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Government will not yield to “small groups who terrorise and vandalise public spaces”: President

President Mohamed Nasheed has said the government will always respect the people’s voice but will not cave under the pressures of small groups who terrorise and vandalise public spaces.

Speaking a ceremony informing islanders of upcoming development projects in Laamu Atoll Gan, the President declared that street violence will not bring down the government – a statement he claimed was especially clear to himself and his party (Maldivian Democratic Party/MDP).

Referring to the series of anti-government protests which have persisted on Male’ for nearly three weeks, the President said the protesters’ call to release Criminal Court Chief Judge Abdulla Mohamed from Special Forces custody stemmed from their frustration with losing power.

He added that the opposition’s attempt to regain power by taking to the streets is a hindrance to national development, further stating that the protests are an abuse of the people’s constitutional right to free expression.

Instead, he requested constructive criticism from disgruntled parties.

Observing that many of the Maldives’ sectors are comprised of educated professionals, he regretted that the judicial courts had not been established along similar lines.

President Nasheed also indicated that all the institutions in every sector of the country comprised of well educated and trained professionals, but expressed his regret stating that he has been unable to elevate the judicial courts to similar standards.

“Our aim is to appoint qualified and responsible Judges to our court houses similar to the standards of the social and economic institutions in the nation,” Nasheed said.

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Tourism Ministry may revise spa ban

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

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

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

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

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

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

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

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

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

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

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

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

The Minister was unavailable for comment at time of press.

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

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

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

Today, MATATO did not respond to phone calls.

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

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

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

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

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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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MATI claims tourism on track to maintain growth in 2011, despite Male’ protests

The Secretary General of the Maldives Association of Tourism Industry (MATI) claims the country’s tourism industry remains on track to maintain growth despite recent widely publicised clashes between police and protesters in Male’ during May.

The total number of tourist arrivals to the country between January to April 2011 amounted to 327,563 people, up 16.9 percent over the same period last year, according to official statistics provided by the Ministry of Tourism, Arts and Culture. Of this demand, Europe continued to dominate visitor market share during the period.

MATI’s ‘Sim’ Mohamed Ibrahim told Minivan News that, as with for a number of destinations across South Asia, the Maldivian tourism sector had begun to “recover” from the impacts of global financial uncertainty in recent years. Sim said he believed the industry, through the use of strategies such as discounting during the off-season, appeared well placed to continue to profit from growing tourist interest, even with perceived challenges facing the industry relating to taxation and recent protests between police and members of the public.

Sim’s comments were made as the government pledged to increase a 3.5 percent Tourism Goods and Services Tax introduced on January 1 to five percent as part of economic reforms that led to a week of protests and violent clashes in Male’ during the beginning of this month.

These protests, which were said to have been instigated as a “youth movement” despite the involvement of several opposition politicians, saw thousands of Maldivians campaigning on the streets leading to occasional violent clashes that drew international coverage, raising some concerns over tourism safety.

Sim claimed that despite these protest concerns – which the government alleged reflected an attempt by some opposition politicians to “mislead” foreign media over their scale – the demonstrations occurring in Male’ and some islands were completely isolated from the country’s island-based resorts.  He added that the demonstrations would not impact tourism despite some nations issuing travel warnings for the Maldives.

Despite these potential concerns shown by some tourism markets, Sim said that he did not expect a huge negative impact on tourism arrival figures for May 2011 when released by authorities.  The MATI Secretary General added that he was optimistic over the impact of the government’s plans to introduce and extend direct taxation on all travel industry services and goods.

“There was some concern over the [tourism goods and services charge], the government appears to be going in the right direction by pledging to do away with duties such as bed charges by focusing on direct taxes,” he said. “On the whole we believe the tax will be beneficial to the country and the industry.”

From MATI’s perspective, Sim said that the organisation believed that instead of various duties and charges currently imposed by the government, the industry would be better served by replacing these charges with one or two “solid” direct taxes like the existing goods and service charges – a policy he claimed the government were already pursuing.

“We believe this would present a healthier picture for finance [in the industry],” he said.

When addressing potential future growth for visitor numbers amidst the Maldives’ peak tourism season drawing to an end in April, Sim said that “quite a lot” of discounting has been occurring within the industry to try and bolster arrivals.  However, the tourism association secretary general said that the decision to discount was ultimately profitable for the industry.

“We must not lose sight that the Maldives is a good value for money destination. For hoteliers, the most important thing is to keep the [visitor] figures going. There is quite a lot of discounting occurring to try and ensure more confidence to the market,” he said. “We are seeing more Chinese coming and although they may not be as high yield – in terms of spending power – than visitors from markets like Russia, they are arriving in good numbers.”

According to the latest Tourism Ministry figures, during the first four months of the year, European tourists including travellers from destinations like Russia accounted for 67.8 percent of the total market share of visitors compared to the same time last year up by 10.6 percent over the same time in 2010.

Asia and the Pacific represented 28.1 percent of the total tourist market with China alone accounting for 15.3 percent of all tourism arrivals over the period. Over the same time in 2010, visitors from the region increased by 35.1 percent to 92,132 people.

Among other regions, the Americas were found to represent 2.4 percent of the tourism market between January to April 2011, the Middle East accounted for 1.1 percent of arrivals and Africa represented 0.6 percent of the total tourism market.

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Mahlouf alleges MDP offered him $US2 million to defect

Opposition Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf has hit out at opposition politicians switching their allegiances for financial gain, claiming he too was offered a bribe to defect.

Mahlouf claimed that he had been “personally told” that Ali Waheed would be switching his political allegiance for money, and further alleged that he had himself been offered US$2 million to join and vote in favour of the ruling Maldivian Democratic Party (MDP).

“I don’t believe selling myself is a choice, but ever since I have known some of these MPs they have always wanted money,” he said.

Mahlouf alleged that it was only Ali Waheed who had taken money to join the MDP – a move he claimed was a coup for the country’s governing party.

“[Waheed] was loved by the DRP, but now that he’s gone he is nobody,” Mahlouf said. “President Nasheed will have the same feeling, so this is a good deal.”

Mahouf said that although the defections, which come as a number of DRP parliamentarians have switched sides in parliament, was a sad development for opposition supporters. However he said he believed it was on the other hand a positive development in regards to the loyalty of the remaining politicians.

The DRP MP’s allegations of bribes being used to entice opposition politicians to switch parties were refuted by MDP spokesperson Ahmed Haleem, who claimed that Ali Waheed’s defection reflected political ambition and not financial concern.

Haleem added that although it remains essential for the MDP to obtain a political majority in parliament to pass a reform agenda blocked by partisan opposition majority, recent defections by MPs including the former DRP Deputy Leader were made on political principal and not bribes.

“Ali Waheed and Abdu Raheem – these are young ambitious people that are not part of the Gayoom regime. The MDP is the country’s only true democratic party, unlike the DRP which is more like a family organisation,” he claimed. “Waheed has a future in politics in this country and I believe he is a clean guy. So while we need a parliamentary majority for the MDP, we do not want to be spending money we don’t have to get it. This is politics, not a football transfer market.”

Questioned over whether some MDP supporters would be sceptical of the intentions of a former opposition MP like Ali Waheed, who in his first speech as an MDP member last week accepted he had been “critical” of President Nasheed and his government in the past, Haleem said he believed members were overall happy at the defection.

“I think all MDP supporters will be very happy, our members are determined in that they want change in this country,” he said.

The DRP has attracted significant local media attention in recent months with factional infighting between supporters of serving leader Ahmed Thasmeen Ali and his predecessor Maumoon Abdul Gayoom. One reason for the strife, according to Mahlouf, was division over how to respond to the government’s financial reform program and decision to devalue the rufiyaa against the US dollar.

Speaking at rallies and gatherings held this week against government economic reforms, following a week of protests earlier this month in Male’, Mahlouf, who is linked to the Z-DRP faction of the party, said that the so-called “youth movement” behind the protests had decided to give the government time to try and address financial concerns before resuming demonstrations.

Haleem meanwhile claimed that while the protests had lost momentum due to a growing public acceptance and understanding of the need for economic changes bought forward by President Mohamed Nasheed, as well as the “weakening” of the DRP.

“I think you will find that 99 percent of people are fed up with the DRP, even three of the party’s members have [defected],” Haleem said. “People are accepting that financial changes are needed and the president has been stating these aims more clearly. We are a civilised country and we need direct taxation – such as the tourism general service tax (TGST) – the President is not just changing the political but also the economic situation in the Maldives.”

Speaking last night during a rally held at the artificial beach area of Male’, Mahlouf claimed that demonstrations held over the last few days had been organised by Thasmeen’s supporters and a number of local NGOs rather than the “youth movement” that had instigated protests earlier in the month.

“We need to be responsible politicians right now and protesting every night is not the only solution to the economic issues,” he said.  “We did a good job supporting the protesters, but it’s time to give some time to the government to try and make changes before we consider more protests.”

Addressing crowds of DRP supporters during last night’s gathering, which he said had drawn “huge crowds”, Mahlouf used his speech to attack the recent defection of a number of DRP politicians such as Ali Waheed to the MDP cause, as the party of President Nasheed seeks to entrench its long-sought parliamentary majority.

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