Several resort managers have warned that former President Mohamed Nasheed’s call in the Financial Times (FT) for a boycott on tourism risked aggravating an already unstable economic situation in the country, given the country’s near-total dependence on tourism.
Speaking to the FT, Nasheed urged potential visitors to make other plans and cancel existing bookings.
“I’d say to anyone who has booked a holiday to the Maldives: cancel it. And to anyone who is thinking of booking one: please don’t bankroll an illegitimate government,” Nasheed told the publication.
Minivan News attempted to clarify the extent of Nasheed’s proposed boycott at a recent Maldivian Democratic Party (MDP) rally, however he was not commenting further on the subject. The Party’s Spokesperson, Hamid Abdul Ghafoor, said the party was keen to encourage “ethical tourism”.
Potential impact
“The impact [of a boycott] would depend on how many people heed the call,” said one resort manager.
“The call for a boycott as such will perhaps not have too much of an impact for our clients. They will ask questions, but they will not let it stop them from booking, if they hear about it all. The February 7 events also were not registered as potentially dangerous by too many of them,” the manager said.
“Of course if, say, [airport developer] GMR staff joined a boycott movement, [seaplane operator] TMA staff start striking, maybe even resort staff join in activities and guests are actually negatively confronted with some of these issues, bad news will spread rather fast and the impact might be drastic,” he warned.
“It feels to me as something which might rather aggravate the situation in a country, which is already struggling with its economy, credibility and security, and where so many of its people are fully dependent on tourism.”
Another resort manager warned that while such a statement would negatively affect tourism, “more so the local Maldivian with reduced hospitality workers service charges, local shops, tour operators and the local suppliers.”
“One would hope that former President Nasheed would take an interdependent viewpoint rather than reverting to this unhelpful strategy,” the manager suggested.
“This will hurt the locals more than the current government. Whilst I understand that the MDP would like new elections, I believe this is not the way forward.”
A third manager warned that the boycott risked undermining support for Nasheed within the tourism industry, which employs many MDP members, and handed the ruling coalition a reason to blame the former President for the country’s dire economic situation.
One resort owner, quoted in the FT’s article, said he supported the boycott “as the industry was partly responsible for the overthrow of Mr Nasheed.”
“Resort owners have financed and backed the new regime, and we can’t carry on as if its business as usual. A boycott will hurt me personally a lot in the short term, but it’s necessary in the long term,” said Ali Shiyam, Director of AAA resorts.
Resorts in the Maldives have previously expressed concern about the potential increase in T-GST to 12 percent, among several measures the International Monetary Fund (IMF) has said are urgently needed to offset the Maldives’ spiraling budget deficit. Due to ongoing contracts with overseas tour operators, any sudden increases in TGST would have to be absorbed by the resorts, several stated.
The cabinet has decided to extend the duration for development of tourist resorts, tourist hotels, training resorts, transit hotels, and city hotels, for an additional 13 months.
According to the President’s Office, the extension will only be granted to the parties who have requested for it and provided that they have completed 50 percent of the work on those facilities.
The decision was made on Sunday following discussions on a paper submitted by the Ministry of Tourism, Arts and Culture.
Islands and facilities leased for development since 2000 will be eligible for the extension.
Discussions were also made on a paper presented by the Ministry of Economic Development, on amending the Foreign Investment Act.
Members made the decision, for the Ministry of Economic Development to carry out the amendment procedure for the Act currently being implemented in the Maldives. The cabinet also advised the President on constituting a Foreign Investment Advisory Board, to develop and strengthen further foreign investment in the country.
The cabinet also decided on forming a National Council for Environment.
The new government’s decision to allow extended resort leases to be paid in installments, rather than upfront at the end of the lease, will immediately take US$135 million of the country’s coffers, the Maldivian Democratic Party (MDP) has claimed.
New Tourism Minister Ahmed Adheeb was not responding at time of press. Former Tourism Minister Dr Mariyam Zulfa explained that Nasheed’s government had offered resorts the option of extending resort lease periods from 25 to up to 50 years.
“Under the regulations the resort lease period was extended to 50 years, with a clause that this would cost US$100,000 every year. But the regulations left open to interpretation how this was to be collected,” she said.
“The Nasheed government had requested that those resorts extending to a 50 year lease pay in a lump sum,” she said, “but while I was Tourism Minister, Gasim Ibrahim and Ahmed ‘Redwave’ Saleem kept pressuring me to let them pay on a yearly basis. They didn’t want to give any money to the government, and soon after the government changed they got what they wanted. [The installments] will only be payable at the end of the current lease periods – it is a huge loss to the treasury.”
According to the MDP, 25 parties had paid the new lease under Nasheed’s government, while a further 90 parties had signed up to extend the lease.
“Some of the resorts wanted it because it increased the value of the property, and therefore increased the value of the government’s asset,” Dr Zulfa explained. “Properties with a 50 year lease paid up front are much more attractive to investors, and encourage development.”
Dr Zulfa contended that not only did the change in policy forgo the country future earnings, “but now they’ve taken a sovereign loan of US$50 million – Tourism Minister Ahmed Adheeb was boasting about it on his Facebook page.”
“They said they need it to finance the budget shortfall – but what shortfall? There was no shortfall – not until they gave this loophole to the coup people who now won’t have to pay anything. They don’t care about the common people – infrastructure projects all over the country have stopped and contractors have been sent home. People [on the islands] are angry, upset and despairing,” Zulfa claimed.
Secretary General of the Maldives Association of Tourism Industry (MATI), ‘Sim’ Mohamed Ibrahim, said he couldn’t speculate on the impact of the decision, but said that negotiations to pay leases in advance had begun during Gayoom’s tenure as President.
“Resorts were willing to pay the government in advance for extensions of their lease,” he explained. “It was not just for development, but because it increases the value of a property and gives investors confidence. We recognized in good faith at the time that the government was in serious need of a cash injection.”
“Obviously, some people don’t agree with that. This came into effect during Nasheed’s government, which argued that if the lease was going to be paid annually, it would be renewed annually. Obviously the interpretations of the law are different.”
A documentary regarding New7Wonders, aired on South Korean national broadcaster KBS, has drawn on the Maldives’ experience with the foundation and ignited controversy in the country regarding the nature of the competition.
Korea’s Jeju island was announced as one of the winners in the competition, along with the Amazon rainforest, Vietnam’s Halong Bay, Argentina’s Iguazu Falls, Indonesia’s Komodo, the Philippines’ Puerto Princesa underground river, and South Africa’s Table Mountain.
Votes were collected online and via paid SMS and phone voting in the various countries, in collaboration with telecom sponsors. Final vote counts for the winners were not revealed, however New7Wonders maintains that the process is “uniquely democratic”.
Following the airing of the program in South Korea, founder of the Swiss-based New7Wonders operation and self-described filmmaker, museum curator, aviator and explorer, Bernard Weber, visited the country to denounce it.
“Only a few reporters were able to attend the conference due to the short notice,” noted the Korea Herald.
“Since the announcement [about Jeju] was made, however, media outlets and activists here have been raising suspicions concerning the foundation’s identity, the money Jeju spent to be chosen and whether it was fair for government officials to take part in the voting multiple times,” the paper reported.
During the press conference, President of the Jeju Tourism Organisation Yang Young-keun revealed that Jeju residents and tourism officials spent 20 billion won (US$18 million) on international phone voting for the competition.
“With the tourism industry accounting for more than 80 percent of Jeju’s economy, 20 billion won does not seem like an unreasonably large amount of money,” Yang added.
Park Dae-seok, an official at Korea’s National Committee for Jeju New7Wonders of Nature, was also quoted as stating that “with Jeju’s 500,000 people, it would have been impossible to have the island named the New Seven Wonders and it is only fair to allow multiple voting in this sense.”
The Maldives’ cabinet announced it was withdrawing from the competition in May 2011, after claiming to have received unexpected demands for cash not explicitly specified in the original contract, in order to continue to “compete meaningfully” in the competition.
Indonesia followed suit, with the country’s tourism authorities announcing the withdrawal of Komodo from the running. In both instances, New7wonders insisted that the Maldives and Komodo remained in the competition while seeking new promoters in both countries.
Demands included ‘sponsorship fees’ (‘platinum’ at US$350,000, or two ‘gold’ at US$210,000 each) and the funding of a ‘World Tour’ event whereby the Maldives would pay for a delegation of people to visit the country, provide hot air balloon rides, press trips, flights, accommodation and communications.
In a comment piece published on Minivan News, New7wonders spokesman Eamonn Fitzgerald responded that the authority to withdraw a participant from the campaign “is a decision for New7Wonders alone, not for any government agency.”
“With the Maldives still a finalist, the critical choice to be made by the key decision-makers in the Maldives is whether to support the campaign or not,” Fitzgerald said at the time.
“I think that it would be a good idea for all the leaders in the Maldives to be active participants in the campaign for the simple reason that it makes good business sense. After all, this is why so many countries, with their public and private sectors, are enthusiastically involved in this global event.”
Voting controversy
Besides Jeju in South Korea, other winning countries responded energetically to the campaign, notably developing countries with large populations desperate to boost tourism revenue.
Vietnam’s central bank in November 2011 sent an urgent communication to the country’s financial institutions, urging them to force their employees to vote for Vietnam’s Halong Bay in the New7wonders competition.
“Vietnamese officials, perhaps mindful of the growing importance of tourism to the economy, are going the extra mile to try to secure victory, pulling on the many control levers available to the pervasive Communist party,” the FT reported.
However some Vietnamese tourism officials cited by the FT raised concerns about the country’s expenditure on paid voting to win the competition, suggesting that the money and time “would be better spent cleaning up the worsening pollution in Halong Bay, raising safety standards on tour boats after two fatal sinkings in recent years and improving the overall environment for tourism.”
President of the Philippines, Noynoy Aquino, also urged his population to hit the phones and vote for the Puerto Princesa Underground River.
“In the Philippines we have no less than 80 million cellphone users sending nearly 2 billion text messages every day. All we need is one billion votes, so that is half a day,” Aquino said, during the river’s campaign push – a commitment of US$58 million, at PHP2.50 (US$0.058) a vote.
In the Maldives, the Swiss foundation approached telecom provider Dhiraagu seeking US$1 million in sponsorship to be its telecom partner in the Maldives, a figure that dropped by half when the company complained that the price was too high.
In a recorded interview with Korean journalists, obtained by Minivan News, Bernard Weber defends the sponsorship as “not a requirement, but a proposition.”
New7Wonders Director, Jean-Paul de la Fuente, interjects: “The Maldives people basically lied. They said if they did not bring sponsors we had threatened they would be expelled from the campaign. That’s a lie. There was no conditional sponsorship, and the proof is that five of the seven winners had no sponsors.”
Fuente continued: “The reason the Maldives person lied is because he had a personal financial interest in another business. What he did was show selected documents that clearly said there was no condition. When he resigned an alternative civic group tried to become a new committee, and he threatened them not to become a new committee.
“Unfortunately the Maldives was until recently a dictatorship, and maybe they still have some of the bad habits of a dictatorship. But we are absolutely clear that the Maldives lied,” Fuente said, and identified Managing Director of the Maldives Marketing and PR Corporation (MMPRC), Simon Hawkins, as “the main problem.”
In response, Hawkins told Minivan News today that “the only financial incentive and gain was to save the country over 500,000 US dollars for ridiculous charges from a disreputable organisation, and I succeeded. The Cabinet did their own investigation and reached their own conclusions, which was the same as ours. I also fail to see how Mr Weber can say that we were lying with the concrete evidence against him.”
Following the Maldives’ withdrawal, New7wonders approached the Maldives Association of Tourism and Travel Operators (MATATO) to take over from the MMPRC as the organising committee of the Maldives’ campaign – a move opposed by the MMPRC, as “the democratically elected Government of the Maldives is the only legitimate authority to act in the name of the Maldives and its people”.
Secretary General of MATATO, Maleeh Jamal, said at the time that the association was considering taking over the event in the government’s stead, as the studies offered by New7Wonders promised an “enormous return on investment”, and “US$500,000 for such an award would be quickly recovered. Although the money was a concern, we had a fair chance of winning,” he said at the time.
Asked today whether the MMPRC had threatened MATATO not to continue in the competition, Jamal said he did not wish to comment: “It was a huge controversy and now the whole saga is over,” he said.
Business model
The studies referred to by MATATO were also referenced by Fitzgerald in a letter to Minivan News following the cabinet decision to withdraw:
Study published by Pearson of London in April 2010: US$5 billion overall in economic, tourism and brand image values for the participants and winners in the man-made New 7 Wonders of the World campaign;
Study published by Grant Thornton of South Africa in April 2011: US$1.012 billion each in economic and employment value for the first five years for being successful in the New7Wonders of Nature;
New study published by JDI of South Korea in May 2011: up to US$1.837 billion each per annum in economic benefits for being successful in the New7Wonders of Nature.
The New 7 Wonders of Nature was the second competition of its kind to be held by the foundation. The first, concerning man-made wonders of the world, awarded the title to Chichen Itza in Mexico, Christ the Redeemer in Brazil, Colosseum in Rome, Great Wall in China, Machu Picchu in Peru, Petra in Jordan, and the Taj Mahal in India. The Pyramids of Giza in Egypt – one of the original 7 wonders, was eventually awarded an honorary title after the Ministry of Tourism complained.
Following Indonesia’s decision to withdraw Komodo, Indonesian blogger Priyadi Nurcahyo Faith collected 15 years of tourism statistics for three of the winning attractions in the first competition, as well as national tourism arrivals, and graphed them in an attempt to correlate the effect of winning the competition.
Visitor numbers to 2007 New 7 Wonders winners. Source: Priyardi's Place
Machu Picchu recorded high growth in (overseas) visitors between 1998 and 2000 of over 20 percent a year. Visitor numbers slumped over 16 percent in 2001, returning to 40 percent in 2005. By 2006, visitors had plunged to 1.14 percent. In 2007 – the year Machu Picchu was announced a winner of the New 7 wonders competition, it had risen to 14 percent, slowing to 12 percent in 2008. In 2009 growth plunged 5 percent, worsening to 18 percent in 2010. Overall arrivals to Peru increased 41 percent in 2004, and 14 percent in the year of the competition. Arrivals dropped 4 percent in 2009.
The Taj Mahal in India showed a broadly similar trend. Foreign visitors increased dramatically 62 percent in 2005, before plunging 17 percent the following year. In 2007, visitor numbers grew 19 percent, but in 2008 the increase was less that 1 percent. Visitors dropped almost 17 percent in 2009. The increase in tourism arrivals to India as a whole continued a downward trend from 13 percent in 2005 to 7 percent in 2008.
Petra, which recorded both foreign and domestic visitors, saw a significant spike in 2007 of over 60 percent, building on a broadly positive trend from a dramatic increase of 93 percent in 2004. Visitors increased 38 percent in 2008, dropped nine percent in 2009, and increased 34 percent in 2010.
At the same time, overall visitors to Jordan dropped 3 percent in 2007, despite almost 19 percent growth the year before.
The blogger’s conclusion was that the New 7 Wonders contribution to visitor numbers was difficult to correlate amid other factors – but was likely “not so significant”.
The controversy surrounding Indonesia and the Maldives’ withdrawal from the competition, and most recently the growing attention in South Korea, has sparked interest in the foundation’s business model.
A ‘New7Wonders Foundation’ is registered in the Swiss canton of Zurich as a charitable foundation, however the New7Wonders own website describes it as “a major, global-scale proof of a business concept based on mass virtual online dynamics creating concrete economic positive outcomes in the real world”.
The Maldives Tourism Ministry initially paid a US$199 participation fee and signed a contract not with the foundation, but rather a commercial arm of the operation: New Open World Corporation (NOWC), which listed its address on the contract as a law firm in the Republic of Panama.
The fate of the money paid to NOWC by tourism authorities, sponsors and telecom partners in unclear. Funds raised, the website states, are used “to set up and run the global New7Wonders voting platform, to run the first campaign that chose the Official New 7 Wonders of the World, to run the current campaign electing the Official New7Wonders of Nature, to run the New7Wonders organisation, [and] to create a surplus for distribution.”
Swiss law does not require charitable foundations to disclose how much they pay executives, unlike the UK, and no filings, declarations of assets or record of funds distributed are available on the foundation’s website.
The Maldives has opened a path for foreigners interested in buying homes in the tourist destination, the New York Times reports.
“Until last year only big-brand hotels were able to secure leaseholds on some of the country’s 1,200 islands. But then the government of President Mohamed Nasheed started allowing designated resorts to sell leases to individuals.
“The primary market is the more than 600,000 tourists who each year visit these islands, home to 315,000 permanent residents.
“The leases, which are for as long as 50 years, are first sold to the resort operator, who then sells them as part of a vacation villa package. The leases can be renewed before expiration, but if the government chooses not to renew it has the legal requirement to buy the property at market value. The resale arrangements vary by resort.
“The first company to introduce a residence option was 12 Blues in October 2010 on the island of Lundhufushi, 130 kilometers, or 80 miles, from the capital of Malé. Of the 40 villas planned, 10 already have been sold, and 10 more will be put on the market next year. The resort was designed by the Singapore company Eco.id, and is intended to include a Franklyn hotel, spa and a variety of restaurants and bars.
“Properties are priced from $2.3 million, or €1.7 million, and owners who want to put their homes into the resort’s rental pool will receive six weeks’ use per year and 50 percent of the net revenue.
“While the ability for owners to arrange rentals has been a key factor in some sales, many buyers have simply always wanted to own in the Maldives, according to Wally Fernandes, a manager at the newly opened Six Senses Laamu resort on the island of Olhuveli, where villas are also for sale.”
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.
A new study finds that Maldivian women are the least employed demographic in the resort industry, accounting for only three percent of the total eight percent of female workers at resorts in 2010. Local and foreign men constitute 92 percent of the industry.
Tourism directly accounts for 30 percent of the Maldives’ GDP, and for 70 percent indirectly.
The thesis, “Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was prepared by Eva Alm and Susanna Johansson during their five-month stay in the Maldives in 2010.
According to their findings, “culture, religion, and women’s role in the family, the role of the family, safety, geographical spread, transportation, education and awareness” were the main factors preventing women from seeking resort employment.
Interviews show that resort life is perceived as ‘western’ and imposes the negative practices of consuming pork and alcohol, supporting nudity, and allowing extramarital sexual encounters on Muslim Maldivian women.
By contrast, Maldivian male resort employees are exempt from these risks.
“Working in a resort as a woman is perceived as bad, as going the wrong way, as not a good place for a woman to be,” said one source.
Women interviewed said social stigma prevented them from seeking resort employment. The combination of not being able to come home at night and working at a resort with a significantly higher ratio of men to women is considered intimidating, sources said.
One father said, “If my daughter would not have the possibility of going home every night, I would not let her work in the resort, it is not safe […] if a woman will not come home at night after work, and she would maybe have a relationship with a man in the resort, which could result in a pregnancy […] this would have very bad impact on the family and would not be tolerated.”
Maldivians who engage in extramarital intercourse risk social ostracism, and women sometimes face punishment for pregnancy outside marriage. The country has among the highest divorce rates in the world.
Parents are said to play a significant role in a woman’s professional future. “In Maldives, in our religion, we are not allowed to drink or be with just any guys and things like that. So our parents are scared about that,” said one young woman.
One resort manager said awareness is a major challenge to promoting female employment. “Convincing the parents is difficult. They are very possessive of the girls. The parent’s perception is that they will mix with the European culture and do bad things such as drinking alcohol.”
A government representative added that “there needs to be a focus on educating mothers and fathers of the women who are willing to join the industry and demonstrate that it is perfectly in order for their daughters to work in the resort sector.”
Female unemployment in the Maldives is estimated at 24 percent, while male unemployment is only eight percent. Reports indicate that the industrialization of fishing, an enterprise previously shared between women and men, and the beginning of tourism eliminated the need for two incomes per household.
According to the report, Maldivian culture does not encourage women to take on entrepreneurial or leadership roles in business. Women are found to be raised to follow men, and a lack of domestic care services prevent women from leaving their posts as mothers and wives.
Women interviewed said that in order to employ more women resorts should “become more Muslim.” Most said they would not work where they could not wear the burqa, although when told that several resorts allow the burqa they maintained their position.
Women were also unaware that many resorts provide mosques for their Muslim employees.
Separating resorts from local island culture was an early tourism strategy, claims the report. Tourism officials at the time were said to believe the policy would protect local culture.
The separation is now considered a factor in island underdevelopment. “The problem we have is that we have first class resorts in the Maldives, next to them are the third world local communities, the villages,” said a government representative quoted in the study. “We have to get these engaged as the people from the island communities can get direct benefit from the resort industry through participatory involvement and inclusive growth.”
Some resort companies, such as Hilton and Soneva, try to compensate for this gap by outsourcing tasks to local islands.
Hilton resort began the “Green Ladies” program, bringing in groups of women from neighboring islands to sweep the resort during the day. Soneva supported the Veymandhoo women’s production of chili sauce in 2008.
Soneva’s Social and Environmental Manager said localizing resort development made Muslim women more comfortable in new professional opportunities. “It has got all the elements necessary for a solid livelihood project. You got women involved, it’s got livelihoods, it’s got commercial value to it, and it’s got localization aspect to it”.
Yet island production capacity does not meet resort demand. “’The communities have to be very much upscale to be able to manage small businesses, because resorts are big business and they wont rely on people who can‟t provide for their demands’”, said one source.
“Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was presented at Sweden’s Lund University in May, and is due for publication this month.
Minivan News interviewed French tourist Mary Kivers, a travel agent visiting the Maldives from France. Kivers came to the Maldives interested in seeing local life, and she shared her perceptions of a country that is both a world-class vacation destination and a unique victim of climate change. Kivers was randomly chosen for the interview, and nothing was known about her or her travel plans in advance.
Eleanor Johnstone: What made you decide to come to the Maldives?
Mary Kivers: When I’m traveling I just look for the cheapest opportunity because I have a promotion as a travel agent. So I saw Male’, and I thought, “Maldives, it’s one of my dreams to go there”, especially because I am a diver, so I decided to go. But then it was pretty hard to find accommodation at a good price.
EJ: How was your trip planned?
MK: I looked on the Internet a lot, and I knew I wanted to go to a local island. I found three websites: one was rather expensive and another never called back, but the third did a package with activities including a boat trip, and full board on Guraidhoo in South Male Atoll at a great price.
EJ: What was your first impression of the Maldives?
MK: When I arrived, I thought it was really nice. First, I went to a resort because I wanted to go diving. So I spent two days and two nights in a resort. I knew I wouldn’t like it too much though, because tourists stick together and it’s a honeymoon destination, so as a girl traveling alone the resort scene can get boring. But I talked to the staff who were very friendly, even though work was hard for them during Ramazan.
I talked with some Sri Lankan staff, who said they spent seven months here and three months at home, which seems very hard for them. But otherwise, the beach was clean, the nature is perfect and the sea is really amazing. Two days, though – it was enough.
EJ: Can you tell me about the local island experience?
MK: Well, when we arrived on Guraidhoo the manager took us to see the tourist beach. There’s only one beach for tourists to wear bikinis, which is hidden away from islanders. Everywhere else, you have to be appropriately dressed for the culture.
Afterwards, every day we took boats to see inhabited islands. But it’s a pity because there’s a lot of garbage and plastic bottles, shoes, everything really, everywhere. There are no trash bins anywhere, even on the local islands. There’s a large amount of garbage, and sometimes they burn it, but it’s right near the sea. There’s the beach, then the sea, then the garbage.
EJ: Where does the garbage come from?
MK: From the people on the island. At first I thought it was all from the boats, but on my last day I really wanted to see the village and local inhabitants so I decided to go there instead of taking the tourist boat. It was really great, I was walking around and everyone was inviting me to sit with them or eat in their house.
Even though it was Ramazan, they gave me food and drinks. They were very nice, even though they don’t see many tourists. It’s funny – children speak English but the older people don’t speak English. It’s now two years since they got a ferry, so before that there wasn’t a ferry or a teacher. Now it’s getting better. In this island for example they have two schools – one for ages 2-6, and the other for ages 6-14. After 14, they have to go to Male’ or another island. The government will pay for housing on another island. But because they have many children, I think it can be hard to get everyone educated.
EJ: You’ve seen the resort side of the Maldives, the local island side, and now you’re on the capital island. How would you describe Male?
MK: Big city, lots of buildings… it’s funny because people look at you weirdly, because I think as I’m a woman alone so I stand out. But they’re very nice people. Yeah, it’s a nice city but it’s built above garbage, they put the garbage anywhere, there’s no trash, no bin. It’s funny because we who live abroad think that Male’ will be an example for the world about pollution and everything, since global warming is important here. But when you see the inhabitants in the Maldives, they put anything into the sea. It was funny, on Guraidhoo one of the girls had a diaper, you know for the baby, and I asked her where she was going. She said, “I am going to the bin,” and she went and threw it in the sea.
EJ: Really?!
MK: Yeah, I know! I even talked a little to the people about garbage, recycling, pollution, but I think it will be a long time for that change to happen. But it’s too bad, I think the sea is so nice, but when there is trash it distracts from nature and the sea.
EJ: So overall, how would you recommend the different parts of the Maldives to other travelers?
MK: Well for me, I prefer local islands for sure. Because you can really get into the culture and see how they live, and it’s more alive. Resorts are like a postcard. It’s just right, perfect…. but it’s not the real country. I guess if you like luxury and honeymoons it’s perfect, but for me it’s a little bit dead. Tourists aren’t smiling much, and I don’t like that, personally.
I would recommend people stay on a local island. I think I will do a post online about how someone can do that, because it was so hard to find a place where I could stay. So if I post on a forum and chat about where to stay in the local islands of the Maldives, maybe I can make it easier for other travelers.
EJ: What do the people you know think of the Maldives?
MK: I met a group of French people on the local island, and I think they were just happy to stay on the boat. They didn’t seem to really want to see the locals and the traditions.
EJ: Thank you, I hope you enjoy the rest of your stay, and have a safe flight home.
MK: You’re welcome.
Tourism is the biggest contributor of foreign currency to the Maldives, bringing in over 700,000 visitors each year. Some resorts, such as Soneva Fushi, appeal to the eco-minded tourist by providing environmentally conscious services. But waste remains an issue for the Maldives. In 2009, the UK’s Guardian newspaper reported that 330 tons of waste are transported to Thilafushi island for processing. Thilafushi is now commonly known as ‘garbage island’.
Over 700,000 tourists visited the Maldives in the first seven months of 2011, the majority of visitors from China.
The Tourism Ministry has released data showing that the number of tourists who visited the Maldives between January and July 2011 increased by 18.3 percent to 520,483. This was compared to the 439,864 tourists who visited the Maldives during the same period last year.
Maldives Association of Travel Agents and Tour Operators (MATATO) Secretary General, Mohamed Maleeh Jamal, told Minivan News that the timing of Europe’s economic decline matches that of the growing Chinese market. Asia’s high season corresponds with Europe’s low season, he said, and resorts are now catering more to Chinese tourists to keep business up.
Jamal also noted that airlines such as Qatar Airways had increased direct service to the Maldives in the last 10 months. He also noted that more airports are being constructed closer to resort islands, such as in Baa Atoll.
“The President has also decided to increase the marketing budget from US$1.5 million to US$7 million, since we expect the industry’s growth to continue,” said the MATATO secretary general.
Statistics show that Chinese tourists dominated the market in the first seven months with 103,734 individuals, accounting for 19.9 percent of the total arrivals. The United Kingdom was the second-largest contributor to tourism arrivals, composing 11.7 percent of the market.
Jamal forecasted “phenomenal growth” in the Chinese market, and estimated that the Chinese would account for 40 percent of the total tourists in coming years.
The Maldives currently hosts over 100 resorts boasting a total of 22,000 beds. Jamal said 3-4 more resorts were currently under construction, and noted that it was important “to always have excess demand and limited rooms to keep the appeal of the Maldives up.”
Secretary General of the Maldives Association of the Tourism Industry (MATI), Ibrahim Mohamed Sim, was more guarded on the issue. Sim told Minivan News that “we are holding steady in growth, but the market looks mixed since the decline of the US economy could affect our traditional European markets.”
Italy and the UK, formerly leading contributors to the Maldivian tourism industry, have declined, said Sim, but Germany was holding steady.
Sim said the demand from China was significant, and that the Maldives “is in a very lucky position to have the chance to meet that demand.”
Sources in the Chinese media and Mandarin-language tourism forums have meanwhile noted the rise of practices such as segregation of Chinese visitors from other guests at meal times.
Sim commented that although he did not believe there was segregation, the Chinese “stand out, they come here for a different reason than most tourists. They do not come here to sun tan, they come here to see a different place.” He noted that some resorts were also designed to specifically appeal to different groups.
Another recent event in the Maldives’ tourism industry was its withdrawal from the New7Wonders competition.
Jamal told Minivan News, “we think it was a loss that the Maldives pulled out. New7Wonders was a marketing tool, and major tourism companies were competing for the award.”
However he said he did not think that the Maldives’ decision had affected the tourism industry.
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