Industry seeks “grace period” for overhauling employee living conditions

Business organisations and labour rights groups have called on the government for more time to address proposed amendments to the Employment Act that will drastically shake up living standards for foreign and local workers employed within the Maldives.

The Ministry of Human Resources, Youth and Sports has today invited comments on the new proposals requiring all employers within the country to ensure that specific standards of living quarters are being provided to staff such as those living on resorts or construction sites.

The proposed amendments to the Employment Act outline new requirements for staff accommodation that include providing a clear separation of work and private space, sufficient artificial or natural light, purpose built kitchen areas and specific health and safety standards.

From the perspective of employers, Mohamed Ali Janah, President of the Maldives Association of Construction Industry (MACI), said that despite certain negative perceptions of the industry over treatment of its workers, beyond a few bad examples, there was a willingness to improve treatment of staff.

“Any improvement [to worker’s living conditions] we would welcome. Yet, with any improvements there is a cost attached to this,” he said.

Speaking to Minivan News, Janah said that he believed that the proposed amendments to workers’ living conditions would impact on the cost of construction work in the Maldives.  He said implementing such living standard changes would therefore require a grace period of around one year to allow businesses and their customers to adapt to the changes.

The MACI president claimed that in an already highly competitive marketplace,  society, rather than the construction industry alone, would have to accept some of the financial burden to offset the higher costs of accommodating workers to the standard proposed by the Human Resources Ministry.

“This will definitely have an impact on proposed costs in the industry. Right now, in what is currently a competitive market. We are just managing to get through the economic situation,” he said.

Alongside the Employment Act regulations, Janah said that he believed that additional legislation relating to occupational health and safety was needed to be addressed both in terms of private and government contracts – an issue he claimed was not always the case in negotiations for a construction project.

“The Maldives building code and health and safety requirements also need to be addressed along with these amendments,” he added.

Taking the example of what he believed were differences between the present and previous governments, the MACI president claimed that the implementation of a more structured national budget had meant that state building contracts were no longer a sure thing for building groups. These changes within the construction market were therefore seen as putting further pressure on building firms to try and cut costs while providing new residences for staff.

“[The accommodation proposals] are a good move, but there needs to be time for the industry to adapt,” Janah claimed. “There is awareness of the new requirements that needs to be created. I don’t believe penalizing companies would be the best practice and that a grace period of around a year would be a good time frame to address [the changes].”

Tourism workers

From a tourism industry perspective, worker’s organisations like the Tourism Employees Association of Maldives (TEAM) have criticised the decision to give just 15 days to provide feedback to the regulations proposed by the Human Resources Ministry.

TEAM President Ahmed Shihaam said that the association would be discussing its responses to the changes in accommodation within the next 24 hours, though had hoped the group would also have time to consult with tourism industry employers as well.

Shihaam claimed that a 15 day time-frame to respond to the regulations made it difficult to consult with important stakeholders like resort employers on the long-term implications of the proposals.

“Rather than days, we may need a month or so to address these issues properly, both with our members and the employers [the resorts themselves],” he said. “This is new to us all and the intention is not to make enemies.”

The Maldives Association of Tourism Industry (MATI), which represents a number of resort businesses operating in the country was unavailable for comment when contacted by Minivan News at the time of going to press.

In addressing the proposals for the Employment Act, Human Resources Minister Hassan Latheef said that the proposed new accommodation standards had been adapted from recommendations outlined by the International Labour Ogranisation (ILO), specifically in terms of sanitation conditions and room size.

Latheef claimed that the proposals would address many of the complaints and concerns received by the country’s Labour Relations Authority from Maldivian Workers concerning the conditions of their accomadation, particularly at resort level.
“Maldivians, rarely complain on the pursuit of [unpaid] salaries, most of the time, they complain about the conditions at work or their living conditions. Most of the complaints I should say come from resort workers,” he said. “Their complaints come from not being paid a service charge they are entitled to, to conditions of their accommodation and alleged discrimination from senior management.”

By comparison, Latheef claimed that about 95 percent of complaints received by the Labour Relations Authority from expatriate workers related to the alleged failure of an employer to pay their wages rather than living conditions.

Accommodation amendments

The proposals opened up to public consultation by the Ministry of Human Resources, Youth and Sports are scheduled to come into force four months after being published in the government gazette.

These requirements include:

  • Lodging should provide shelter from the natural elements, and be constructed using suitable materials
  • If a lodging is based at a work site, there should be a fence separating these two area at a distance of 1.5 metres
  • At entrance of lodging, a service provider’s name and contact number should be displayed along with the maximum number of people that can be accommodated
  • Lodgings should have enough daylight or artificial light as well as a means of letting air pass through
  • A single worker’s accommodation should equate to 6 square metres of living space at a height of 2.4 metres and an all round width of 1.8 metres
  • For 2 people sharing accommodation, there should 9 square metres of space that is 2.4 metres in height and 2.1 metres in width – each extra person after that should be supplied with 4.5 square metres of living space, 2.4 metres in height with a width of 2.1 metres
  • Rooms should be for separated by gender, unless workers are married
  • Lodgers should also have a means of locking away valuables
  • A toilet should be provided for every 10 people staying at a lodging
  • A sewerage system should be in place and constructed with permission from the relevant authorities
  • A kitchen should be supplied that is appropriate for the surroundings, while it’s forbidden to cook inside lodgings at construction sites
  • Employers or the service provider will be fined up to Rf5,000 for each failure of regulation that is recorded

More information on the measures can be found on the Ministry of Human Resources, Youth and Sports’ website.

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Limitless money-changing licenses allow resorts to manipulate foreign currency market, says MMA source

Resorts in the Maldives are using their money-changing licenses to operate as defacto banks, creating an artificial demand for dollars that is undermining the government’s efforts to stabilise the economy, an informed source in the Maldives Monetary Authority (MMA), has claimed.

Figures from the country’s central bank show that of the country’s 306 licensed money changers, 95 are resorts while 211 are private.

The present system allows resorts to exchange unlimited amounts of currency, weakening the flow of dollars into the official banking system and allowing resorts to manipulate the market, the source claimed.

“Small resorts are operating like private banks, trading in rufiya and using cheques to do so in any amount of money, with no oversight from the banks or the MMA,” he said.

As a consequence, the government’s recent decision to float the rufiya within 20 percent of the pegged rate of Rf12.85 was unlikely to stabilise the currency until the underlying demand for dollars was addressed.

“The black market rate for the dollar was Rf14-15 before [the government’s decision to devalue the currency]. The reasoning is that now the official rate is Rf15.42, there shouldn’t be a black market. The fact that the black market rate is now Rf16.5 suggests this is not a problem with the economic fundamentals, but a problem of people manipulating the market.”

The source suggested that even if the market was given free reign and the rufiya reached Rf20 to the dollar, “resorts would still have the power to set the parallel market at Rf22.”

The source revealed that during its recent visit to the Maldives, the International Monetary Fund (IMF) had recommended that resort money-changing licenses be limited to changing cash, making it physically impractical to manipulate the market with large sums of money.

The theory, the source explained, was to force resorts to use the local banking system for foreign exchange and increase the flow of dollars through the official economy.

Most resorts presently charge customers in dollars (mostly via credit cards). With most large resorts banking overseas in financial hubs such as Singapore, beyond a fee taken by a local credit card operator such as Cyprea or the Bank of Maldives, very little of this passes through the Maldivian economy – approximately US$13 for every US$100 spent in the country.

“No other country allows another currency to divide the market,” the source said, noting that resorts earned 80 percent of the country’s foreign exchange.

“The taxis at Colombo airport are not permitted by law to accept US dollars, but here every corner shop does. There is a need for exchange control – our monetary regulation is from the 1980s and fits on a single piece of paper. You can see the problem.”

The MMA recently announced the enforcement of legal tender – rufiya – which will require a foreign currency transaction at the point-of-sale. Were resorts restricted to exchanging money by the physical limits of cash, they would be effectively be obligated to feed dollars into the local banking system, thus increasing the availability of foreign currency and greatly reducing the dollar shortage, the source suggested.

The Seychelles encountered similar problems with its exchange rate in late 2008, the source said, providing an IMF document showing that the country’s official exchange rate of 8 rupees to the dollar in late 2008 competing against a black market exchange rate of almost 14.

Following the Seychelles’ decision to float its currency, the rupee shot up to almost 18 to the dollar, but plunged to 10 a year later before eventually settling at 12.

Were foreign exchange controls passed in parliament and enacted, the Maldives could expect the dollar situation to stabilise “in less than a month”, the source predicted.

“This is why ministers are claiming the rufiya can potentially reach Rf10 – although if that stimulates excessive imports it is not necessarily a good thing.”

Reaction

Local economist in a private consultancy Ahmed Adheeb said the Maldives’ economic situation was as much a problem of over-expenditure and high budget deficit.

“Successive IMF reports have raised real problems with the country’s expenditure,” Adheeb said. “You cannot just blame the resorts for manipulating the market.”

Low confidence in both the rufiya and the local banking system was a major concern, he explained, and forcing businesses into it could have wider ramifications.

“We have to build confidence in the financial system, otherwise we will just see black market banks emerge. Businesses need to be confident that their accounts will be protected and confidential, and that this will not be abused for political reasons,” he said.

“For instance, nowhere does a country’s Auditor General state a bank client’s name and debts in [publicly available] audit reports.”

The limited number of cross-currency transactions in local banks showed there was no confidence in the country’s financial system, Adheeb said, as businesses that banked in rufiya could not be confident of receiving dollars when required.

“The Finance Minister needs to provide reassurance that our banks are protected and regulated, and give confidence to businesses that bank confidentiality will be respected. In a small society like this, we have to listen to the entrepreneurs.”

Secretary General of the Maldives Association of Tourism Industry (MATI), ‘Sim’ Mohamed Ibrahim, said all resorts needed a foreign exchange license, and questioned the practicality of both enforcement and restricting these trades to cash: “Even small resorts trade in high volumes,” he said.

The government has meanwhile submitted five bills on taxation to parliament, part of an IMF-sanctioned economic reform package it hopes will radically boost the country’s earnings in future years.
The four bills include the General Goods and Services Tax Bill, Business Profit Tax Bill, Income Tax Bill, an Amendment Bill to Tax Administration Act and an Amendment Bill to the Maldives Import Export Act.
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Eco Centres in the spotlight as Kuramathi centre wins prestigious industry prize

European travel and tourism group TUI has awarded the Eco-Centre at Kuramathi its ‘International Environmental Award’, “recognising its exemplary contribution to the protection and conservation of nature and biodiversity” and in particluar its work protecting coral reefs in the Maldives.

The award, which includes a prize of €10,000 (US$13,500), was presented during a ceremony held at the resort yesterday attended by President Mohamed Nasheed.

While many resorts in the Maldives now run eco-centres and environmental awareness programs, a trend that has grown in parallel with the increasing eco-awareness of guests from leading markets such as the UK. The Kuramathi centre, currently headed by Dr Reinhard Kikinger, is one of the oldest such facilities in the country. It was founded in 1999 by Director of Universal Resorts Ali Noradeen, in response to catastrophic coral bleaching caused by the el Niño effect which destroyed 95 percent of the country’s shallow reef coral – a disaster from which the country’s coral is still recovering.

“Water pollution and over exploitation through tourism can lead to irreparable damage,” TUI said in a statement following the event.

“The compelling concept of the Kuramathi Eco Centre was bringing nature conservation and tourism into harmony based on research, the sustainable use of resources and the raising of public awareness, which are performed in cooperation with TUI and the local population.”

Eco-conscious trend

Many resorts in the Maldives now run eco-centres and environmental awareness programs, a trend that has grown in parallel with the increasing eco-awareness of guests from leading markets such as the UK.

Marine biologist Verena Wiesbauer Ali, currently a consultant with Male’-based Water Solutions but who has worked at resorts all over the country, explained that the concept of running an eco-centre and employing a resident marine biologist was one that took off in the Maldives after increasingly eco-conscious guests began to ask more and more questions of resort staff.

“The first centre was opened at Kuramathi, but in 2009 I counted 12-15 centres at resorts across the Maldives. There will be many more by now,” she said.

Many of the marine biologists and eco-centres in the Maldives communicate with each other over a lively online newsgroup, reporting aquatic abnormalities and swapping tips on how to convince resort managements of the potential impacts of practices such as manta and sting ray feeding exhibitions (with one suggesting that feeding mantas leads them to mob snorkelers, who can panic and potentially stand on a sting ray).

Initially, Wiesbauer said, there was an assumption among many resorts that a marine station generated no income and was just “a luxury addition” to the resort – “but I believe that if run properly, they do [generate revenue] – I did my Masters thesis on it. ”

Guided dives and snorkel tours, and presentations on marine life and reef protection, might be the most self-evident activities of a marine station or eco-centre, Wiesbauer explained, but broadening the role of marine biologists to incorporate other aspects of the resort could greatly improve its sustainability – literally, in cases of beach erosion.

“As well as guiding snorkeling tours they can help improve things like energy efficiency, and even things like the purchasing department – for example, there are currently a lot of illegal transactions going on around the purchase of lobsters [from local fishermen]. Only a few resorts have asked their marine biologists to make sure the lobsters they are buying meet minimum size limits.”

Some resorts, Verena noted, were heavily involved in marine research – with academic work carrying the potential to greatly enhance the prestige of a resort.

“For a resort to fully benefit, the marine biologist has to be involved in many departments,” she explained. The end result – ‘going green’ – was a highly marketable benefit in key European markets such as the UK, and at upmarket resorts such as Soneva Fushi, a key feature of the resort.

A rising trend at many resorts with eco-centres was to develop them into focal points for environmental awareness programmes and marine biology classes in nearby communities and schools – effectively exporting the resort’s eco-knowhow to the community, as the Kuramathi centre does with neighbouring Rasdhoo.

“This is something that is especially important for resorts in the outer atolls,” Wiesbauer said, observing that in her experience many local teachers lacked enthusiasm for the field work and expeditions needed to bring the subject alive for young students.

“Mostly it is taught [in the Maldives] as a scientific, book-based subject, and the kids say it is not being made clear to them. Things like the nature expeditions for schools organised by Soneva are very successful.”

However resorts, she acknowledged, were very different from each other and not all had the scope for an in-house marine biologist – some relied on visiting consultants, others disregarded the concept altogether.

“Some resorts focus on diving and snorkelling, while at others guests hardly ever go in the water,” Wiesbauer said.

Nonetheless, she suggested, while there was a balance to be struck between sustainability and providing the five star luxuries such as monsoon showerheads that many guests expected, it was important to provide visitors a choice when it came to simple things – such as reusing towels. Far from feeling inconvenienced, guests were usually very supportive of such measures, she said: “across all the resorts I’ve worked, I haven’t once had a guest come up and say to me ‘I’ve paid thousands to be here, I can do what I like.’”

Correction: An earlier version of this article incorrectly stated that Verena Wiesbauer Ali was presently completing her Masters. She has completed her Masters and is now working on her PhD.

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Resort group Anantara plots major anniversary expansion

Anantara, which operates a number of high end resorts and spas across Asia and the Middle East, says it will expand its property portfolio by up to 60 percent next year by extending its presence in markets such as the Maldives.

With the company set to commemorate its first decade in business during 2011, the launch of the Anantara Kihavah Villas in Baa Atoll – scheduled to open in January – marks plans to try and further boost the number of properties in lucrative areas like the Indian Ocean.

“We’ve come a long way since our first resort opening in 2001,” said Peter Carmichael, Anantara’s Senior Vice President, in a statement. “As we move into our tenth anniversary year we will open seven stunning new resorts that will offer guests luxury and tranquility in surroundings that are culturally and environmentally uplifting.”

In the Maldives alone, the company already operates the neighbouring resort properties of Naladhu, Anantara Veli and Anantara Dhigu in the country’s South Male’ Atoll.

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Comment: New regulation on strikes lacks legality and would wipe out resort workers’ constitutional rights

Citizens in Maldives have recently won important rights. The 2008 constitution guarantees fundamental rights, such as freedom of speech and association. The constitution also guarantees the right to strike, which is an extremely important right for workers. Without the right to strike workers are left powerless. In dictatorships like Saudi Arabia or Burma, the denial of the right to strike is a key weapon in suppressing democracy.

However, it seems that employers in the Maldives, unsatisfied with workers finally having human and labour rights, are doing their best to convince the government to effectively deny those rights.

This has come to light with regard to a draft Ministerial regulation on strikes dated August 11, 2010. The working draft looks to have been written as a birthday present for the resort owners, so one-sided it effectively nullifies workers’ constitutional right to strike.

Does the Minister have the authority to make a regulation on strikes?

Before examining the details of the draft regulation, there is an even more glaring error: it is doubtful that the Minister actually has the authority to make the regulation under the present law.

The first clause of the working draft notes that the regulation is made according to clause 89 of the Employment Act of 2008. That clause states: “Unless otherwise provided in this Act, regulations required to administer this Act shall be made by the Minister.”

What is crucial in this clause is the phrase “administer this Act”. That means regulations can only to be made for matters that the Act has defined, thus regulates and thus are in need of administering.

The Employment Act is concerned with the conditions and regulations of workplaces and the contract relationships for the provision of labour which exist between an individual (a worker) and an employer (which might be a person or a firm). The Act also covers the individual’s entitlements (such as maternity leave, working hours etc).

However, the Employment Act does not mention anything to do with the collective rights of workers in employment or their regulation (such as rules regarding trade union rights in the workplace or trade union recognition).

Chapter 4 of the Act (“employment agreement”) does not mention collective agreements which would be signed by a trade union and an employer. The entire chapter concerns the employment of individuals.

Article 30 of the Constitution of Maldives guarantees the right to form trade unions, yet nowhere in the entire Act are trade unions mentioned. The closest the Act comes is in Clause 21(b)(vi) where discrimination against a worker (as an individual) for membership or activity in a “workers’ association” is declared unlawful.

The Act does not mention fundamental matters related to workers’ collective rights and employment such as trade union recognition, collective bargaining, collective agreements or industrial disputes.

As such, a question must be raised: how can a strike, which like all forms of industrial action by workers is a collective act, be administered by Ministerial regulation when the Act does not address the collective rights and acts of workers or trade unions?

The proposed regulation actually has nothing to do with the Employment Act at present. It is almost certainly unconstitutional. The only way a regulation might be appropriate would be if there were already chapters and clauses in the Employment Act dealing with the collective rights of workers and trade unions.

Wiping out the right to strike

As for the details of the regulation itself these would effectively mean that workers would have no ability to conduct a legal strike. Workers would be completely at the whim of the employer.

Clause 6 of the draft regulation would make it almost impossible for workers to reach a stage where they could go on strike. The regulation provides only an example of a Grievance Procedure, thus making the procedure voluntary. How such a Grievance Procedure is to be put in place and how it would work is left completely undefined. Employers are under no legal obligation to include good faith mechanisms or rights protections.

Given current employment practices in Maldives, workers could simply be dragged endlessly through a procedure which is designed not to produce a result and thus not arrive at any point where a strike could be called.

The regulation contains a stunning contradiction. The regulation defines a strike as “stopping work” yet Clause 8(c) forbids strikers “from disturb[ing] the services they provide or should not create any kind of difficulties in the mean[s] of strike.” This clause actually means workers cannot stop work, since by definition, when workers strike, they are withholding their labour and thus disturbing the services of the workplace.

Take the resorts: would a striking front-desk worker still required to check-in guests? Would a striking chef still be required to cook meals? Would a striking house-cleaner still be required to make beds? With this the employer could easily claim any strike is a disruption and thus the strike would be illegal.

This same vagueness is repeated in Clause 11(iv) of the regulations which forbids workers from “interfere[ing] with customers”. This is extraordinarily vague and would allow any employer to simply claim: by going on strike workers are “interfering” with customers and the strike would be deemed illegal.

Clause 9 of the regulation includes a number of professions who are excluded from the right to strike. International labour standards as governed by the International Labour Organisation (ILO) are quite clear that with the exception of police and military, all other professions should retain the right to strike. It is doubtful that a regulation excluding so many professions would be acceptable under international human rights norms.

What to do?

It seems that this regulation, even if the Minister were to sign it, despite its clear breach of most international norms regarding workers fundamental rights, would have to ultimately be declared unconstitutional.

The Employment Act, does not give the Minister any authority to make regulations for matters not covered by the Act. Since strikes are a subset of workers’ collective rights and regulations to these rights are not mentioned in the Act, the Minister has no authority to make regulations to administer non-existent sections of the Act.

It is time for a serious rethink. Resort and hotel workers, in fact all workers, in the Maldives need a proper law which protects their collective rights to participate in trade unions, to collective bargaining and to industrial action. It solves nothing when short-cuts which must ultimately be found unconstitutional are tried.

Moreover, this regulation tramples on workers constitutional right to strike to such an extent it could become an international issue, placing Maldives in breach of its human rights commitments and the conventions of the International Labour Organisation.

The real reason that this regulation is being rushed through at this time is the resort owners in Maldives have consistently refused to recognise the collective rights of resort workers. Low wages, lack of transparency with distribution of the service charge, overwork and the high costs of living all remain unresolved problems for most workers.

Instead of engaging in genuine negotiations to resolve these matters with the Tourism Employees Assosiation of the Maldives (TEAM) – the resort workers union – the employers seek to rebuff TEAM at every opportunity.

TEAM is systematically denied recognition by the employers. The employers refuse to negotiate collectively and threaten workers. Workers are arrested and placed in jail at the behest of employers when they strike. Blacklists of known supporters of TEAM are maintained and distributed among employers. Despite these threats workers continue to exercise their constitutional right to strike because this is the only choice they have to resolve their interests. All other avenues are closed by the employers.

The best solution would be for the Government of Maldives to call for tripartite negotiations including TEAM and MATI, designed to reach an agreement for amendments to the Employment Act regarding trade union recognition, collective bargaining and industrial disputes. Or to produce an Industrial Relations Act regarding these matters. This would protect workers’ rights and produce clear and transparent mechanisms to allow for proper negotiations between TEAM and the resort owners and thus go a long way to resolving the root cause of strikes in the resort industry.

But a regulation with dubious constitutionality that effectively erases the right strike is in no one’s interests and will only harm Maldives’ international reputation in regard to democracy and human rights.

Dr Jasper Goss is Information and Research Officer with the Asia/Pacific regional organisation of the International Union of Foodworkers (IUF), the global trade union federation which represents resort, hotel, food and agriculture workers.

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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UK transplant surgeon dies while snorkeling at Meedhupparu

A top UK transplant surgeon has died while snorkeling on holiday in the Maldives.

Reports in the UK press claimed the 61 year-old consultant transplant and vascular surgeon, Ali Bakran, was on holiday with his wife Diane and daughter Miriam when he was pulled from the water and pronounced dead.

Police Sub-Inspector Ahmed Shiyam said the incident occurred at the Adaaran Meedhupparu Resort in Raa Atoll.

“The cause [of death] was most likely drowning but it is very difficult to confirm without a postmortem, and that is not something we can do here [in the Maldives],” Shiyam said.

Meedhupparu Resort’s management would not confirm that the incident had occurred, and said the resort would not release any information to the press until the matter had been investigated.

Bakran’s son Adam told the Liverpool Daily that the cause of his father’s death on August 27 was still unknown, and that the family was waiting for the results of a post-mortem to be conducted in the UK.

“We have no idea if he died before he drowned. My mum saw him snorkeling and then half an hour to 45 minutes later he was pulled from the water,” he said.

Bakran worked at the Royal Liverpool Hospital for over 20 years, and set up the charity Aequitas to help make careers in medicine more accessible to underprivileged students.

Fellow charity trustee Professor John Aston, also the UK’s North West Regional Director of Public Health, told the newspaper that Bakran “was a man who had quite humble origins overseas and was very committed to improving access to medical school among people from poor backgrounds. He wanted other kids to have the same chances as he had, and his commitment to social justice and equality and opportunity is something to be recognised.”

Registrar at the Royal Liverpool Hospital Ajay Sharma said the staff were very upset.

“At times, people in the hospital would be taken aback or a bit stunned because he would do whatever was necessary for his patients – he would bulldoze his way for patients,” Sharma said.

“When he was travelling, Mr Bakran would call me from America or Australia to check on his patients.

Balkran is the latest tourist to die in a series of snorkeling-related incidents this year.

In mid-August a Chinese couple holidaying in the Maldives disappeared from their resort after they went for a swim.

The 38 year old woman and 40 year old man were holidaying with their 13 year-old daughter on the Hilton Irufushi Beach and Spa Resort in Noonu Atoll.

On March 14, police received a report that a Chinese national, Rui Dai, died while snorkelling at Holiday Inn Kandooma Resort, South Malé Atoll.

Earlier that same month another Chinese man died while snorkeling at Chaaya Lagoon Hakurahura Island Resort, less than a day after a German tourist died in a snorkeling accident at Embudu Village Island Resort.

Mohamed Ibrahim ‘Sim’ from the Maldives Association of Tourism Industry (MATI) has previously stated that resorts need to ensure that inexperienced or elderly snorkelers are aware of the dangers, such as the country’s strong currents.

MATI is currently working with the Ministry of Tourism to make tourists more aware of the risks to snorkelers.

“Chinese guests in particular need to be made more aware because the Maldives is a totally different environment than what they are used to,” Sim said.

“The UK tour operators already pass on this kind of information, but China is a new market and the operators need to be made aware also,” he added. “Few resorts have reception staff or guides who speak Mandarin.”

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Profits from resorts that serve alcohol are haram, explains Dr Zakir Naik

Visiting Islamic speaker Dr Zakir Naik clarified during a question and answer session this morning that profits generated from the sale of alcohol are haram (prohibited), and urged the Maldives to encourage investment in halal (permitted) tourism.

“In Islamic finance, you cannot involve in any business as the owner of that business if it is even one percent a haram activity,” Dr Naik said.

“As a main partner you cannot be involved. If you are investing as a pool and you are a small partner, then a little bit is permitted, but as a 100% owner I cannot say ‘fine, I will have a hotel that will allow alcohol, and that money I will give to charity.’ You cannot say that. Because you are involved in haram activity.”

It was permitted, Dr Naik explained, to invest in part in a mutual fund where a haram activity might be a small percentage of the investment, as “then I can give the small amount to charity, because I have no major say in the business. But if I am a bigger shareholder, I cannot allow even 0.1% of haram activity to take place.”

Under Islam the use, handling and sale of alcohol are considered haram to Muslims, a tenet that led to vigorous opposition against the government’s attempt in February to legalise the sale of alcohol to non-Muslims on inhabited islands. Critics of the regulations claimed they were unconstitutional, as Article 10(b) of the Maldives’ Constitution states that ‘no law contrary to any tenet of Islam shall be enacted in the Maldives..

However the country depends heavily on tourism for its economy, particularly resorts which profit from the sale of alcohol, many of which are owned by local businessmen.

Dr Naik, who is speaking tonight and tomorrow at Maafaanu Stadium, after being invited by the Ministry for Islamic Affairs, questioned why the Maldives had no resorts that were “100 percent halal.”

“Your country is so beautiful. I have visited many countries in the world and I have to profess, the islands in Maldives are par excellence. I’ve been to many parts of the world, been to many top resorts in the world, but the one where I am staying in the Maldives is par excellence. Allah has blessed you with such beauty, scenery and natural resources,” he said.

“I put forward the proposal that why don’t we have an Islamic resort? I’m aware the Maldives prohibits alcohol for citizens, but those people who come from outside the Maldives can have access to these things which are haram for Muslims.”

Such resorts, he suggested, should be “exclusively halal, free of pork and alcohol, and with proper segregation and dress code – it will be a benefit.”

Similar segregated, alcohol and pork free hotels in other parts of the world had proven very successful, he explained, “with revenue far more than other hotels. The same thing can be done here.”

“The income for people investing in such Islamic resorts will be much higher,” he suggested. “I have spoken to government officials about it, and they say Inshallah, they look forward to it. Believe me it will attract more tourists very soon, in the next couple of years, with better revenue and a better profit.”

State Minister for Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed has similarly argued for promotion of Islamic “cultural tourism” within the Maldives, noting that “a lot of hotels, such as the Intercontinental in Medina, are without alcohol. What about developing alcohol-free resorts; Islamic tourism, just like Islamic banking?”

Dr Zakir Naik is speaking at an event at Maafannu stadium tonight and tomorrow, at 8:45pm.

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Tourists still stranded in the Maldives due to volcanic ash

London’s Heathrow Airport reopened flights on Tuesday night after almost a week of flight cancellations due to the volcanic ash from Iceland’s Eyjafjallajokull volcano, which erupted last Wednesday and spread a thick cloud of ash over Europe.

Major airports around Europe are now reopening their airspace for more flights to resume, allowing stranded tourists and goods to reach their destinations, although recent reports suggest this is happening somewhat haphazardly.

Anecdotal reports suggest some hotels and resorts are reaching capacity with stranded tourists, particularly those near the airport on Hulhumale.

Controller of Immigration, Ilyas Hussain Ibrahim, said tourists who have been stranded in the Maldives will not have any issues with immigration.

“We are willing to extend their visas,” he said. “There is no problem with visas expiring. The problem is when they over-stay their booking at the hotels and resorts.”

Deputy Director at the Ministry of Tourism Hassan Zameer said no resorts have reported any cases of stranded tourists to the ministry, but they have informed resorts not to take passengers to the airport unless their flight has been confirmed.

Zameer said members of government, the tourism industry and resorts met earlier this week to discuss the situation, and said some resorts had offered to give their guests discounts “so long as they are not losing money.”

He said he did not know whether any resorts were implementing these discounted rates.

Zameer noted that “if this situation is prolonged it will be very costly to [the resorts],” and they are trying to help guests how they can.

Deputy Minister of Tourism Thoyyib Waheed said the ministry does not have any statistics on how many tourists have been stranded in the Maldives or how many were expected to arrive but were stranded in Europe.

But he added the airport has set up a hotline (call 332 2211) to help tourists with information on flights.

Staff at the One & Only Reethi Rah resort said most of their guests have extended their stay for at least four nights, but could not give any more details about whether they were giving special rates or any other assistance to these guests.

Many resorts around Malé that are reported to be over-booked with stranded tourists did not wish to comment on how they are handling the situation.

Stranded in paradise

Minivan News spoke to one British couple with their two young kids who had planned to return to the UK on Monday, when Sri Lankan Airlines informed them their flight had been cancelled and they would have to stay in the Maldives until flights resumed.

Because the airline is not party to the EU legislation, it does not have to provide financial assistance, such as accommodation and food vouchers, to its stranded customers.

volcano

The couple said they knew some people who were flying with British Airways and noted that BA customers were getting compensation from the airline.

They stressed the point that insurance would not cover any of their expenses, noting “nothing is covered.”

Because they were staying at a resort that cost US$450 per person per day plus food, they have found new, more affordable, accommodation in Malé until they can be rebooked on a flight home.

“We’re just waiting for Sri Lankan Airlines to call us,” they said. “There’s a three-flight back-log.”

The couple added they were meant to be back at work in the UK early this week and their kids should be back at school.

“We’re losing our salary on top of the extra expenses,” they said.

They noted neither the airline, the resort or the government had assisted them in any way.

An Italian couple had a different story to tell. They were stuck in Shanghai and were told their best option was to take a flight to Kuala Lumpur and then to Cairo. But by when they reached KL, they discovered their flight to Egypt had been cancelled.

“So we came to the Maldives to relax for a few days,” they said, adding that they had no swimsuits or beach clothes, “just scarves and jackets.”

They had been told of a flight back to Italy on April 29, but were still awaiting confirmation from their airline and are hoping to get back on Sunday, if possible.

“For now, we will go relax at a nice resort with beautiful beaches,” they said.

Two young Britons said they had not yet been affected by the volcano since their flight was originally scheduled for tomorrow, and are hoping they will be able to keep their seats.

Many import/export businesses, such as tropical fish exporters, have also faced difficulty since they cannot send their products to Europe. Cargo has been stopped in hubs like Dubai and stored by the airlines, while some if it has been returned to the Maldives.

With airlines gradually reopening their flights again, goods and products are now queued, waiting to reach their destination.

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Chinese tourist arrivals break records this February

Chinese tourists have set a record for tourist arrivals in the Maldives this February, reports Miadhu.

The Asia-Pacific region recorded 21,362 tourist arrivals, marking a 122.5 percent rise in arrivals from the region.

During February, 13,345 Chinese tourists arrived in the Maldives, compared to 12,003 Italians, 10,422 British nationals and 6,602 Germans.

This is the first time that Europeans have not been the largest market for tourism in the Maldives.

Tourism experts believe the rise was due to the Chinese New Year, but some critics argue that entertainment and shopping are key areas for Chinese tourists and need to be improved to sustain the numbers of Chinese visiting the Maldives.

Two Chinese tourists recently died during their stay in the Maldives. The first drowned while snorkelling in February. The second man was reported as being robbed and killed by Chinese newspaper Shanghai Daily, but Maldives Police Service reported that the man drowned.

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