Tag: tourism ministry

Nasandhura to be developed as a 15-storey luxury hotel

The government has revealed plans to develop the recently closed Nasandhura Palace Hotel on the waterfront of Malé as a 15-storey luxury hotel with apartments and a convention centre.

Speaking to Minivan News today, deputy tourism minister Ibrahim Lirar said Nasandhura will be re-developed as a five-star city hotel by Galaxy Enterprises – a company owned by President Abdulla Yameen’s brother-in-law Mohamed Manik.

“The company is going through all the design phases, which then has to be approved from the tourism ministry before they can start construction,” said Lirar.

Nasandhura Palace Hotel, located in front of the airport ferry terminal, first opened in 1981 and was managed by the government.

The site was previously handed to Shangri-la in May 2008 to develop a 15-storey hotel, before a crack in the coral reef outside the area doomed the project.

Shangri-la was provided land near Dharubaaruge to develop the hotel, but the project has since been stalled.

The hotel development project on the Nasandhuraa plot was awarded to Galaxy Enterprises five years ago.

The large plot of land also accommodates the state-owned Island Aviation Services’ head office, which has now been provided new premises to move its operations, said Lirar.

Island Aviation’s head of administration Ali Nashaath told Minivan News that the airline will be moving its headquarters to the vacant Raiveriyaa restaurant in the western end of Malé.

“We never had our own land to operate from for the past 15 or so years. So we are planning to develop the Raiveriyaa site as our permanent headquarters,” said Nashaath.

Haveeru reported that the cabinet’s economic council last month had requested Island Aviation to move out from Nasandhura, after transferring ownership of the plot of land from the housing ministry to the tourism ministry.

Asked about the bidding process in the hotel development project, Lirar said the tourism ministry followed all due procedures.

“The government will decide what happens to the land as it is government-owned. We will employ it in ways which would provide the maximum benefit to the government,” said Lirar.

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Villa Group unable to pay salaries

Opposition politician Gasim Ibrahim’s Villa Group has announced it will not be able to pay salaries of more than 4,500 employees after the government froze its accounts last week over unpaid fines.

The conglomerate – which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, and education – says the government’s US$90.4million claim is unlawful and is contesting it at the civil court.

The opposition says the government is targeting Gasim’s businesses because of his split from the ruling coalition in January.

“This company’s revenue has suffered since last November. The struggle to balance the company has been brought to a halt by the government propaganda’s, blatant lies and the freezing of our accounts,” managing director Ibrahim Siyad Gasim said in a memo sent to all employees on Wednesday.

“In these difficult circumstance, employees who find it hard to work with us to rebuild the company again are advised to find other job opportunities,” he continued. “The employees who leave will be paid their outstanding salaries as soon as we find the means to pay.”

Human resource manager of Villa Shipping, Ibrahim Moosa said the memo will apply to more than 4500 employees of Villa Shipping and subsidiary companies.

“This is a very difficult situation for the company. I plead with our staff to stay with us. God willing we will overcome this situation,” he said.

A journalist from Villa TV, also owned by Gasim, said the memo does not come as a surprise.

“They put out a memo a few weeks back saying some employees might be sacked due to the circumstances. Also there was another memo issued back in November. We have not been paid April’s salary yet,” she said.

Another employee at Villa’s domestic airline Flyme said staff had been paid half of their salaries and half of a transport allowance for March.

“All of us at Flyme understand what is happening. We know that Gasim is really being squeezed financially,” he said.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments on the imprisonment of ex-president Mohamed Nasheed and ex-defence minister Mohamed Nazim.

However, JP MPs and council members are part of a new coalition formed between the main Maldivian Democratic Party, the Adhaalath Party, defectors from the ruling coalition and members of Nazim’s family.

In an appearance on Villa TV in April, Gasim said two European banks have cancelled loans worth US$80 million due to media reports of the notice.

Unfairly freezing Villa’s accounts would “impoverish thousands of citizens” and one of the largest companies in the country will “head towards bankruptcy,” he said.

The Maldives Inland Revenue Authority (MIRA) issued the US$90.4 million notice after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

But the civil court last month refused to issue stay orders until the conclusion of the dispute, saying the state could reimburse and compensate the company if the ongoing cases are decided in Villa’s favour.

MIRA’s notice stated that Villa owed US$75.5 million as fines, US$600,000 as interest, and US$14.8 million as unpaid rent dating back to original lease agreements signed in 2006 and 2007.

A second notice for the payment expired on April 18, but the Maldives Inland Revenue Authority (MIRA) did not freeze the company’s accounts saying the move may negatively affect the Maldivian economy, local media have said.

The JP has since accepted an offer by President Abdulla Yameen to commence talks.

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Government freezes Villa accounts

The central bank has frozen the accounts of several companies owned by opposition Jumhooree Party (JP) leader Gasim Ibrahim, over a US$90.4 million payment allegedly owed as unpaid rent, fines and interest on several properties leased for tourism.

The Villa group has refused to make the payment and is contesting the tax authority’s claim at the civil court. Gasim has accused the government of unfairly targeting his business interests.

The Villa group operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education. Only the accounts of companies which hold the properties were frozen. They are Villa Shipping, Villa Holidays, Gazeera Pvt Ltd and Maanenfushi Pvt Ltd.

Villa officials on Tuesday told local media the accounts slated to be frozen are empty.

But the Maldives Inland Revenue Authority (MIRA) says the government can suspend all services to the company, including customs clearance and foreign work visas, if it is unable to recover owed sums through the frozen accounts.

MIRA issued the US$90.4 million notice in February after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development.

The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party. However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

The properties at stake were leased under a settlement agreement signed with the tourism ministry on December 12, 2013, less than a month after president Abdulla Yameen took office.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

The notice for payment expired on April 18, but MIRA did not freeze the company’s accounts saying the move may negatively affect the Maldivian economy, local media reports.

The Villa group has previously said freezing its accounts will “send shockwaves” through the Maldivian economy.

“It is not only Villa’s shareholders’ and the company’s rights that are lost [if bank accounts are frozen]. The rights of a lot of employees who work at the company, small and medium-sized businesses dependent on this company, guests who have made bookings at our resorts, tour operators, and many other people, would also be lost,” Villa Group’s executive director Shimad Ibrahim had said.

The Villa group employs over 5,000 people.

The central bank has also frozen the accounts of JH Resorts Pvt Ltd, the Maldives Tourism Development Corporation, Asia resorts, Yacht Tours Pvt and Medhufushi and the accounts of AAA Pvt Ltd.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments over a crackdown on the opposition, including the arrest of JP deputy leader Ameen Ibrahim on May 2.

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Tourism ministry moves to freeze Villa accounts

The tourism ministry has ordered the tax authority to freeze the accounts of companies with pending bills, including that of the opposition Jumhooree Party leader Gasim Ibrahim’s Villa group.

The government is seeking US$90.4million allegedly owed as unpaid, rent, fines and interest on several properties from Villa group. The conglomerate – which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, and education – says the notice is unlawful and is contesting it at the civil court.

The notice for payment expired on April 18, but the Maldives Inland Revenue Authority (MIRA) did not freeze the company’s accounts saying the move may negatively affect the Maldivian economy, local media have said.

Deputy tourism minister Hussain Liraar told Minivan News: “We did not mention a specific business or company. But the ministry sent a letter to the tax authority asking to freeze the accounts that owe money to the state.”

MIRA has declined to comment on the issue saying: “It’s not our policy to give out information regarding specific tax payers.”

Meanwhile, Tourism minister Ahmed Adeeb today told Haveeru: “The government must recover any money owed to the state. This is public money. We cannot let it slide for certain individuals.”

According to Haveeru, the tourism ministry’s order to freeze accounts came in response to a letter from MIRA, in which the tax authority said freezing Villa’s accounts could have adverse impacts on the economy. In response, the tourism ministry ordered MIRA to freeze the accounts of all companies with pending bills.

Some 20 companies, including Villa Shipping and Trading Pvt Ltd, now face an accounts freeze.

“Fabricated”

MIRA issued the US$90 million notice after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development. The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party (MDP). However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

While the tourism ministry cited lack of “good faith” as the reason, the Villa officials insisted the terminations were unlawful and that the fines were “fabricated”.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

But the civil court last month refused to issue stay orders until the conclusion of the dispute, saying the state could reimburse and compensate the company if the ongoing cases are decided in Villa’s favour.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments on a deepening political crisis triggered by the arrest of opposition politicians. JP’s deputy leader Ameen Ibrahim was also arrested last week after clashes between protesters and police following a 20,000 strong antigovernment march. 

Settlement agreements 

The properties at stake were leased under a settlement agreement signed with the tourism ministry on December 12, 2013, less than a month after president Abdulla Yameen took office.

The settlement agreement was reached after the Supreme Court on November 19 ordered the state to pay US$9.7 million to Villa in one month as compensation for damages incurred in a project to develop a city hotel in Laamu Kahdhoo.

As part of the settlement, Villa withdrew cases involving a dispute over a city hotel in Haa Dhaal Hanimadhoo and resort development on Gaaf Dhaal Gazeera. In return, the government signed five ‘amended and restated lease agreements’ with Villa for three islands and several Kaafu atoll lagoons.

The government also agreed to forgo rents for the islands and lagoons for a construction period of five years and seven years, respectively.

However, after the settlement agreement was terminated in February, MIRA’s notice stated that Villa owed US$75.5 million as fines, US$600,000 as interest, and US$14.8 million as unpaid rent dating back to original lease agreements signed in 2006 and 2007.

The Villa officials noted that the company has paid over US$15 million as advance payments for the properties.

In the case of Kahdhoo, MIRA claimed an unpaid rent of US$293,000 and a fine of US$10 million – 34 times the allegedly unpaid rent – despite the 2013 Supreme Court judgment declaring Villa does not owe rent for the property, the officials said.

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Tourism ministry seizes environment regulatory powers

The parliament has granted powers to the tourism ministry to authorise developments on resorts in a move critics say will weaken the environment protection regime, and pave the way for corruption.

Amendments to the tourism law passed today transfers to the tourism ministry the Environment Protection Agency’s (EPA) powers to evaluate environmental impact assessments (EIAs) and authorise projects such as land reclamation. The agency functions as an independent body under the environment ministry.

Voting on the bill submitted by government-aligned MP Mohamed Ismail took place amid continuing protests by opposition Maldivian Democratic Party (MDP) MPs.

It was passed with 41 votes in favour after Speaker Abdulla Maseeh Mohamed asked for a show of hands.

If the amendments are ratified, resorts will have to seek authorisation from the tourism ministry for any development that could “permanently alter” the island, plot of land, or lagoon’s environment. The ministry must evaluate an EIA report before issuing permission.

EPA permanent secretary Ajwad Musthafa told the economic affairs committee during its review of the legislation last week that “the independent checks and balances system will be lost” if the regulatory powers are transferred to the tourism ministry.

The move amounts to allowing the tourism ministry to “self-regulate,” he contended.

The EIA process is the “main instrument” of the environment protection regime and adheres to international best practices, he said, noting that the reports are prepared by independent and qualified consultants.

Ajwad also objected to transferring technical experts to the tourism ministry as the agency’s “institutional capacity” was built up over a long period.

EPA director Miruza Mohamed meanwhile warned that the move could reduce funding from international donors.

However, the ruling party says “making the services available under one roof would ease the burden on investors, speed up services, and improve investor confidence.”

The involvement of other ministries and institutions in regulating resorts hinders the tourism ministry and “lowers investor confidence”.

The new provisions state that “only the tourism ministry will have the authority” to conduct assessments and authorise development projects.

The tourism ministry will also have the power to impose fines not exceeding US$5 million for violations.

Transparency and accountability

Environmental NGO Ecocare warned that the move conflicts with the environment protection law – which requires the EPA to evaluate assessments – and could “pave the way for corruption”.

“Under this particular scenario we also feel that when EPA assess and evaluates EIA reports, it is a more transparent practice than leaving this to the Tourism Ministry, who carry out the evaluation and awarding of bids for tourist resorts,” Ecocare said in a press release today.

The current system put in place by the Environment Protection and Preservation Act includes checks and balances and assures transparency and accountability, Maeed Mohamed Zahir from Ecocare told Minivan News today.

With the changes to the law, an unscrupulous official at the tourism ministry can grant approval “regardless of the effect on the environment,” he said.

Opposition Maldivian Democratic Party (MDP) MP Fayyaz Ismail said at the committee last week that the tourism ministry presently “discriminates” in issuing and suspending operating licenses to resorts.

Fayyaz warned that officials could misuse the authority to approve development projects on resorts and selectively impose fines at whim.

MP Ali Fazad, a ruling Progressive Party of Maldives MP, also expressed concern with the amendments conflicting with the existing environment law as “two laws would have two [provisions] for the same thing”.

However, all ruling coalition MPs on the committee voted in favour of the bill and forwarded it to the parliament floor.

The law also introduces a new scheme to allow the extension of resort leases to 99 years for a lump sum payment of US$5 million.

The changes aim to incentivise investors, make it easier to obtain financing from international institutions, and increase revenue for the government.

To be eligible for a lease extension, a resort property must be operational with an existing lease period of 50 years and must not owe money to the government.

Under the current Tourism Act, the maximum lease period for resorts or hotels is 50 years. However, the constitution allows leases up to 99 years.

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Gasim’s Villa group bankruptcy imminent

Jumhooree Party (JP) leader Gasim Ibrahim’s Villa Group is facing bankruptcy with the courts refusing to issue stay orders on a US$90 million payment to the state ahead of an April 18 deadline.

The civil court yesterday denied Villa’s requests for stay orders, stating the company does not face “irrevocable losses” if a notice by the tax authority to collect US$90 million in allegedly unpaid rent and fines is enforced.

The rulings pave the way for the state to freeze Villa’s bank accounts after April 18.

Gasim has said unfairly freezing Villa’s accounts would “impoverish thousands of citizens” and that the public does not want one of the largest companies in the country to “head towards bankruptcy.”

However, the court said the state could reimburse and compensate the company if the ongoing cases are decided in Villa’s favour.

The JP launched daily anti-government demonstrations in alliance with the main opposition Maldivian Democratic Party (MDP) in early February.

However, since the notice was issued, Gasim has not been seen in opposition protests or made any comments on a deepening political crisis.

Gasim made an appearance on Villa TV on Saturday for the first time in weeks and appealed for discussions with the government to resolve the dispute, insisting that Villa does not owe the “imaginary” amount.

He noted the JP had not condemned the sentencing of former president Mohamed Nasheed to 13-years in jail on terrorism charges last month

“When the judiciary made a judgement I don’t want to comment on it,” he said.

The JP is remaining “silent” and presently does not have a “stand” of supporting any party, Gasim said.

The party is not officially a part of the ‘Maldivians against brutality’ campaign launched by the MDP and religious conservative Adhaalath Party, he added.

Two European banks have cancelled loans worth US$80 million due to media reports of the notice, Gasim said.

Gasim’s interview followed strong criticism from tourism minister Ahmed Adeeb at a ruling coalition rally last week. He accused the tycoon of hoarding islands and lagoons and refusing to pay money owed to the state.

Adeeb also said the JP leader was “in hiding” after unsuccessfully seeking the presidency through his opposition alliance.

In response, Gasim said he is following his best judgment and suggested Adeeb’s anger might stem from insecurity or “lack of self-confidence”.

However, Gasim said he does not bear “animosity towards anyone” and repeatedly said he is ready to meet president Abdulla Yameen or Adeeb at any time.

Senior members of the JP are active in street protests in their individual capacity, Gasim said.

Bankruptcy

The government denies the opposition’s accusations of unfairly targeting Gasim’s business following the JP’s split from the ruling coalition.

The tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies on February 5, shortly after the JP formed the alliance with the MDP.

On February 26, a day before an MDP-JP anti-government mass rally, the Maldives Inland Revenue Authority (MIRA) gave a 30-notice for Villa to pay US$90 million allegedly owed as unpaid rent and fines for the seized properties.

Gasim did not attend the February 27 protest march after failing to return from a trip to Sri Lanka

After the 30-day notice expired, MIRA issued a 20-day notice warning Villa that its accounts will be frozen under the authority’s enforcement policy against defaulting taxpayers.

After the tourism ministry terminated the agreements, Villa filed five cases against the ministry in February, contending that the move was unlawful.

Five additional cases were filed against MIRA over the US$90 million notice.

In rulings during the past two weeks, the civil court refused to grant stay orders in any of the cases. Villa is currently in the process of appealing the rulings at the High Court.

While the court initially granted a stay order in one case in early February, the High Court overturned the ruling.

A Villa official told Minivan New today that the judge who granted the stay order was transferred to the drug court.

The official explained that the properties at stake were leased as part of a settlement agreement signed with the government on December 12, 2013, less than a month after president Yameen took office.

The settlement agreement was reached after the Supreme Court ordered the state to pay over US$9 million to Villa. As part of the settlement, the government signed ‘reinstated and amended lease agreements’ with Villa for several islands and lagoons.

Gasim noted that Villa paid the state about US$15.8 million eight years ago as advance payment for the leased properties.

However, MIRA issued the 30-day notice claiming Villa owed US$75 million as fines and more than US$14 million as unpaid rent dating back to the original lease agreements signed in 2006 and 2007.

Under the settlement agreement, the government had agreed to forgo rents for the leased islands and lagoons for five years and seven years, respectively.

Correction: A previous version of this article stated that the tax authority is seeking US$100 million from the Villa Group, based on statements by Gasim Ibrahim. The company has since explained that the accurate figure is US$90 million. 

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Environment agency head demoted

Senior officials of the state environment regulator have been transferred in an apparent demotion.

Environment Protection Agency (EPA) director general Ibrahim Naeem was transferred to the Baa atoll biosphere reserve office while director Mohamed Musthafa was transferred to the water and sanitation department of the environment ministry.

The EPA functions under the ministry of environment and energy.

The move follows a government-aligned MP submitting amendments to the tourism law to transfer powers to authorise developments on resorts from the EPA to the tourism ministry.

If the amendments pass, resorts will have to seek authorisation from the tourism ministry for any development on a resort that could “permanently alter” the island, plot of land, or lagoon’s environment. The ministry must compile an environmental impact assessment before issuing permission.

The EPA currently conducts assessments and authorises projects such as land reclamation.

Following preliminary debate at yesterday’s sitting of parliament, the amendment bill was accepted for consideration and sent to committee for further review.

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Gasim’s Villa denied stay order in court battle

The Villa Group has been denied a stay order on the tourism ministry’s seizure of two lagoons in a court battle that could bankrupt one of the Maldives’ largest companies.

The civil court yesterday rejected a request by Villa, which is owned by opposition Jumhooree Party (JP) leader Gasim Ibrahim, for the stay order, paving the way for the tourism ministry to take control of the lagoons.

Villa Group is currently locked in a series of lawsuits against the state over the seizure of several leased properties as well as a notice to pay US$100 million allegedly owed as unpaid rent and fines.

The opposition claims the government is unfairly targeting Gasim’s business interests following the JP’s split from the ruling coalition. The government denies any political motivation behind the moves.

Villa has filed ten cases at the civil court contesting the tourism ministry’s termination of amended lease agreements as well as the US$100million notice.

The company is seeking stay orders halting the enforcement of the notices until the court decides on its legality.

But in yesterday’s ruling over the termination of lease agreements for the Maadhihgaru and Kanuhuraa lagoons in Kaafu atoll, the court ruled that Villa Hotels will not suffer “irrevocable losses” if the stay order is not granted as the state could compensate the company if the case is concluded in its favour.

The tourism ministry had also terminated lease agreements with Villa for three more islands shortly after the JP formed an alliance with the main opposition Maldivian Democratic Party (MDP) in early February.

Requests for stay orders in the other cases are still pending. Former Prosecutor General Ahmed Muiz is representing Villa in the lawsuits against the tourism ministry and the Maldives Inland Revenue Authority (MIRA).

MIRA had initially asked Villa to pay US$100million by late March, but extended the period until mid April.

Gasim has said the government is planning to freeze Villa’s accounts if the company is unable to pay the amount, warning that it would bankrupt the company and leave his 5,000 employees jobless.

In early February, the civil court granted a stay order halting the seizure of the five properties in separate litigation. However, on February 24, the High Court overturned the stay order.

Gasim meanwhile met Supreme Court Chief Justice Abdulla Saeed yesterday following the apex court’s refusal to accept an appeal for the High Court decision.

Gasim told reporters after the meeting that he expressed displeasure with the Supreme Court registrar rejecting the appeal without offering a reason.

The chief justice told him to submit a letter and that matters cannot be settled verbally, Gasim said.

Villa Group is one of the largest companies in the Maldives with the holding company Villa Shipping and Trading Pvt Ltd conglomerate operating businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, and education.

The three islands and two lagoons at stake in this case were leased as part of a settlement agreement signed with the government in December 2013 after the Supreme Court ordered the state to pay Villa over US$9 million as compensation.

Lagoons are generally leased for purposes of land reclamation for either industrial or tourism purposes.

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Thousands sign petition over resort workers’ pay, conditions

A petition calling for sweeping changes to resort employees’ working conditions and a minimum wage has collected two thousand signatures during its first five days.

The Tourism Employees’ Association of Maldives, which launched the petition, said it had amassed signatures from workers on 17 resorts since last Wednesday.

“Signing for new hopes and rights,” the group said on its Facebook page. “Keep going [with] the great work of humankind.”

The petition demands a minimum monthly wage of US $600 across the sector through an amendment to the Employment Act.

There is currently no minimum wage and the petition says that wage rates have not increased in the sector for 10 years.

The workers are also asking for quotas to require 80 per cent of tourism employees in the country to be Maldivian, which would require big changes in the hiring practices of resorts.

Current laws require 50 per cent of resort employees to be Maldivians, but the rule is not widely enforced. The sector employs some 11,426 Maldivians and 16,342 expatriate workers, meaning that overseas employees constitute 59 per cent, according to preliminary figures for the 2014 census.

TEAM also wants the president to honour a pledge to make shares in resorts available to their rank-and-file employees, a rarity in a country where resorts are generally owned by private companies controlled by a few individuals.

In February 2014 President Abdulla Yameen said that by the end of the year, a number of resorts would be floating a portion of their shares to the public, and urged Maldivian employees to become stakeholders.

The president said that share ownership would be a “lucrative addition to their current income from salary and other perks through employment at these resorts”, according to a press release issued at the time.

Speaking at the opening of the Sun Siyam Iru Fushi resort, Yameen also said the Sun Travel resort group would float up to 40 percent of its shares to employees in the coming years.

However, the pledge of shares for resort employees has not so far become a reality.

The petition also asks for a 12 per cent service charge to be applied and for 99 per cent of that to be distributed “fairly” among tourism employees, as set out in the Employment Act.

TEAM’s supporters are seeking the right to form a union, as set out in the constitution, and the right to protest in resorts, which was banned in 2012 under the Freedom of Assembly Act.

The law says that protests can only be held in resorts and in air and sea ports after a special permit from the police based on the advice of the military, but TEAM cites the constitution’s guarantee of the right to peaceful protest.

Over the past few years, resort workers have occasionally tried to launch protests.

Workers who had been fired from Sheraton’s Maldives luxury resort for demanding union recognition protested near the Sheraton Maldives Full Moon Resort and Spa in February, according to the website of the International Union Federation.

Carrying banners with slogans such as “Sheraton fully booked — no room for human rights”, the dismissed workers carried out a boat picket around the resort, while employees came to the beach and waved in support.

In February 2013, an employee strike in Vaavu Atoll Alimathaa resort resulted in 27 employees being fired by management.

According to Haveeru, Ahmed Adeeb, the tourism minister, said at the time that protests in resorts would affect tourists both directly and indirectly.

“Such things must not be encouraged by anyone. Especially when it is something banned by law, it must not happen. No one should encourage or give room for such things,” Adeeb said.

Officials from the Tourism Ministry were unavailable for comment at the time of press.

On Thursday, about 50 employees from the international airport in Seenu atoll Gan protested over a new salary structure which they said would result in lower pay than before. They stopped protesting when management agreed to return to the previous wage structure.

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