Tag: tourism ministry

Tourist arrivals show decline of 7.6 percent in January 2013

Tourist arrivals for January 2013 were down by 7.6 percent compared to the same month in 2012, figures from the Ministry of Tourism have revealed.

Earlier this month, Tourism Minister Ahmed Adheeb told local media he was confident the Maldives would reach one million tourist arrivals in 2013, after narrowly falling short of the same target for 2012.

However, figures released by the ministry show that tourist arrivals from Europe and Asia – the two largest markets – had fallen by 4.4 percent and 16.8 percent respectively in January 2013 when compared to the same month in 2012.

According to figures from the tourism ministry, last month was the first time in three years there had been a decline in tourists coming to the Maldives in January when compared to figures from previous years for the same month.

The monthly number of Chinese tourists arriving in the Maldives fell for the first time in over six months compared to figures from previous years.

China, which holds the largest share of the arrivals to the Maldives at 21.6 percent, fell by 31.4 percent from 28,008 in January 2012 to 19,208 in January 2013.

The European market continues its steady decline, with Italy – which held the largest share of tourist arrivals in Europe in January 2012 – falling by 32.5 percent from 10,451 to 7,050 in January 2013.

Russia now holds the largest share of tourists for all countries classified under ‘Europe’ by the ministry, accounting for 10.2 percent of all arrivals in January 2013 at 9,061.

Arrivals from United Kingdom fell from 7,001 in January 2012 to 6,367 in January 2013, while German arrivals – which account for the third largest share of the European arrival market – fell by eight percent when compared to the same month in 2012.

In contrast, India’s tourist arrivals grew by 51.2 percent from 2,303 to 3,483 and arrivals from countries in the Middle East increased from 1,303 to 2,312.

Tourism Minister Ahmed Adheeb was not responding to calls from Minivan News at time of press.

Tourism budget increased by MVR 60 million

Earlier this month, the tourism budget for 2013 was increased from MVR 20 million (US$1.2 million) to MVR 80 million (US$5.1 million).

The increase came after criticism from the Maldives Association of Tourism Industry (MATI), who last month called for the government to reconsider the MVR 20 million budget allocated for tourism marketing in 2013.

The initial sum of money allocated was the lowest in eight years, according to a statement from MATI, which highlighted concerns that the Maldives’ economy was mostly reliant on tourism.

Tourism Minister Ahmed Adheeb told local media that the ministry had initially requested a budget of MVR 200 million (US$12.9 million) to carry out tourism promotion for the year, however parliament had “erased a zero” from the figure when finalising the budget.

Adheeb noted that while tourism promotion is expensive, the revenue generated from the industry “drives the entire engine”.

“When we put down MVR 200 million, the government authorities don’t actually realise the priority that this requires. Parliament erased a zero from the MVR 200 million we proposed, and gave us MVR 20 million,” he told Sun Online.

“Then we had to work in all other different ways, and now the Finance Minister has committed to give us MVR 60 million more.”

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“STEP” program launched for training youth

The Education Ministry in collaboration with the Tourism Ministry, Human Resource Ministry, and partner resorts have launched a training and education program for ‘O’ level graduates, reports local media.

The first three months of training will include an orientation of all resort fields, followed by six months of training in the field of their choice, Deputy Human Resource Minister Abdulla Rifau explained to Haveeru.

An internationally recognised certificate will be granted to students who complete the training program.

Food, accommodations and an allowance will be provided to participants, Education Minister Dr Asim Ahmed said.

Fifteen resorts have signed up for the “STEP” program thus far, he added.

The government plans to expand the program to include construction, agriculture and fisheries sectors, according to local media.

Yesterday, Minivan News spoke with representatives from the Dhivehi Rayyithunge Party (DRP) and the Maldivian Democratic Party (MDP), who both agree income inequalities are being fueled by vested interests, faulty government policies and a lack of educational training opportunities for youth.

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ACC to investigate Club Faru Resort complaints

The Anti-Corruption Commission (ACC) is to investigate whether Club Faru Resort employees were hired without being told of a change in management, local media reports.

Earlier this month, the Tourism Ministry took over the resort from its present owners following the expiry of its lease agreement and handed control to the government-owned Maldives Tourism Development Corporation (MTDC).

President of ACC Hassan Luthfy told local media that while no case had been filed to the commission in writing regarding Club Faru, the ACC was investigating due to the complaints received from “various groups” in relation to the resort.

“The major complaint we have received is that the government operates the resort using its previous employees, and that they were given employment without making the necessary announcements. These kinds of complaints, we are looking into them,” he said.

Tourism Minister Ahmed Adheeb told Minivan News that the resort would be closed within two months as part of the government’s plan to begin the second phase of “reclaiming” Hulhumale’ this year.

“The resort is to be operated by a government company for two months and it will then be closed down and reclaimed.
“It was a seven year lease that expired on November 15,” he said earlier this month. “Now the government has decided to reclaim that part of Hulhumale’.”

Adheeb told Minivan News that the resort would be closed as part of the government’s plans to begin the second phase of “reclaiming” Hulhumale’ this year.

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MTDC to temporarily operate Club Faru resort: Tourism Minister

The Maldives Tourism Development Corporation (MTDC) is to temporarily operate Club Faru resort, Tourism Minister Ahmed Adeeb has said.

Local media has reported that the MTDC will run the resort until the second phase of reclaiming Hulhumale’ begins this year.

On Saturday (January 5), the Ministry of Tourism, Arts and Culture said it had assumed control of Club Faru after the resort’s operators failed to hand over the property following the expiry of their lease agreement.

Adheeb told Minivan News the next day (January 6) that the property was to be closed down within two months of the government taken over the resort this weekend.

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Club Faru resort to be closed within two months: Tourism Minister

Tourism Minister Ahmed Adheeb has revealed that the Club Faru resort is to be closed down within two months after the government took over the property this weekend.

On Saturday (January 5), the Ministry of Tourism, Arts and Culture said it had assumed control of Club Faru after the resort’s operators were said to have failed to hand over the property following the expiry of their lease agreement.

Adheeb told Minivan News that the resort would be closed as part of the government’s plans to begin the second phase of “reclaiming” Hulhumale’ this year.

“The resort is to be operated by a government company for two months and it will then be closed down and reclaimed,” he said.  “It was a seven year lease that expired on November 15. Now the government has decided to reclaim that part of Hulhumale’,” he said today.

The proposed closure has been described as “interesting” by the former secretary general of the Maldives Association of Tourism Industry (MATI), who expressed hope that the government would treat all resort operators equally going forward.

Adheeb today maintained that his ministry would not favour certain resort operators over others in terms of their treatment.

According to the tourism minister, the government offered other companies the chance to temporarily manage Club Faru after the first phase of reclaiming Hulhumale’ was completed.

However, Adheeb claimed that after the expiry of a seven-year lease on November 15, 2012, the resort’s operators had gone to court on two separate occasions to try and extend their lease.  He added that the operators had been unsuccessful on both attempts to obtain an injunction against the government.

Despite the lease termination deadline expiring last year and the subsequent takeover on Saturday, Club Faru’s website – when accessed at the time of press – displayed a pop-up sign dismissing rumours that the resort will be closed or temporarily shut down for renovation between November 1 to April 31.

“Attention!!! Against different phrased rumours that seem to circulate in the internet and in certain travel agencies: Fihalhohi and/or Club Faru will neither be closed nor will there be any renovation from November 1 to April 31 that could lead to disturbance. This info is valid for Fihalhohi and Club Faru. Both Islands continue as is,” the pop-up statement reads.

Management at Club Faru resort were not responding to calls from Minivan News at time of press.

Speaking to local media, Adheeb claimed that the handover had gone “smoothly” when he visited the resort yesterday (January 5).

“Everything went quite smoothly. The Finance Ministry’s financial controller, tourism’s permanent secretary, and legal officials of the ministry along with me came to the resort and took over,” he said.

“We will oversee the operations of the island as the [tourism] ministry has reclaimed ownership of this resort,” Adheeb told local newspaper Haveeru.

Local media reports have claimed that the government had assumed ownership of the island property while tourists were still holidaying at the resort.

According to Adheeb, an Italian company called Club Med had originally invested in the resort. However, after Club Faru was designated part of the Hulhumale’ reclamation plan seven years ago, Club Med was given another island as compensation.

Local media reported that the government leased the island for a period of five years on November 16 1995, after a delay in the second phase of reclaiming Hulhumale’. Following the expiry of the five year lease, it was then extended on an annual basis.

All resort operators treated the same: Adheeb

When contacted today, Former Secretary General of MATI ‘Sim’ Mohamed Ibrahim described the Club Faru handover as “interesting”, adding that no operators should be favoured when it comes to breaching legal contracts.

“While it is important that legal contracts are kept to and enforced, it is also important that individual resort operators are treated the same and not differently.  It appears that Club Faru has taken precedence over others, especially as Hulhumale’ is earmarked for development,” Sim told Minivan News.

Responding to the comments, Adheeb said that the tourism ministry did not favour any resort operator over another.

While there are no other resorts in the Maldives where an operating licence has been cancelled, Adheeb claimed that when dealing with rent payments, each resort will always have to pay or face a termination notice.

The tourism minister claimed that when he first took up his position following February’s controversial transfer of power, there were 12 resorts found to be not paying rent at the time. However, through flexibility on the interest rates, he maintained there were now “no resorts not paying rent”.

“We are not tolerating resorts who do not pay rent, any operating resort has to pay. Those who are not paying already have the termination notice. This culture has to go, by the end of this year all resorts will be paying and it will become a more stable industry,” Adheeb said.

At a press conference held on December 31, 2012, Adheeb said that resort operator Yacht Tours had been sent termination notices for both Alidhoo and Kudarah resorts, with a seven day period for handover.

He added that while the ministry had come to a payment system agreement with a number of other companies, Yacht Tours had sent no official written communication in regard to the payment of outstanding rents.

Following the termination notice, Yacht Tours, a company owned by opposition Maldivian Democratic Party (MDP) MP Abdulla Jabir, said it will take the government to court over the dispute.  The company has alleged that the Tourism Ministry had failed to responded to correspondence it had sent on the matter of rent payments.

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Tourism head pledges action on waste management over fears for Maldives holiday image

The Ministry of Tourism, Arts and Culture has pledged to take the “lead” in addressing waste management issues in Male’ should the city’s council and the Ministry of Environment and Energy fail to effectively deal with concerns about garbage.

Tourism Minister Ahmed Adheeb this week said that the issue of waste management posed an immense threat to tourism in the country, adding that his department would look to actively address the problem should other authorities fail to resolve ongoing concerns by next month.

The comments have been dismissed today as irresponsible by the Ministry of Environment, which favours greater levels of cooperation from Adheeb’s department and the wider tourism industry in how waste was dealt with in Male’ and the nearby island of Thilafushi.

Thilafushi, where the vast majority of waste from the country’s resorts and inhabited islands is deposed of, has become more commonly known ‘garbage island‘ by both local and international media.

Meanwhile, Male’ City Council (MCC) has alleged that it is not being provided sufficient funding from the 2013 state budget to deal with garbage levels in the capital.  This funding has been identified by the council as exacerbating the challenges it claims to be facing due to growing amounts of waste and outdated machinery used at the capital’s refuge sites.

This week, the council claimed it had been forced to shut one of the capital’s two waste disposal sites due to machinery at the site being inoperable – limiting the amount of garbage that can be handled at the site in recent days.

Taking the lead

On Monday (December 31, 2012) Tourism Minister Adheeb spoke of the present challenges facing waste management in the country, maintaining that a failure to try and solve current problems with the capital’s garbage would require his ministry to “take the lead” in clean up efforts.

Adheeb added that waste management was therefore expected to be a main focus of the Fourth Tourism Master Plan – scheduled at present to be released within the first quarter of 2013.

“One of the main issues which have a negative impact on the tourism industry at present is the issue of garbage: the sight of garbage floating in the sea, the sight of smoke from burning garbage as the flights descend to land. This has a very detrimental impact on value addition,” he stated.

According to Adheeb, user generated reviews on popular travel sites like TripAdvisor were now cautioning tourists to choose resorts where “smoke is not visible”, causing a loss to the many high-end resorts located near Male’ and Thilafushi.

“There is no way we can sustain tourism without solving the issue of waste management. We will wait till the end of February. If by then the Environment Ministry and the MCC are unable to deal with the issue, then we will take the lead, even if it means we will need to spend on it on a voluntary basis,” Adheeb said.

Waste management deal

The previous government of former President Mohamed Nasheed had signed a waste management agreement with India-based Tatva Global Renewable Energy back in May 2011 to implement a system designed to generate power from recycling waste.

The contract has been undergoing renegotiation with the current government as part of efforts to provide what it has called a more “mutually beneficial” agreement – a move slammed by the MCC, which had accused authorities of trying to “sabotage” the deal.

However, Adheeb this week was said he was critical of the effectiveness of previous methods of waste management being sought in the Maldives, as well as the attitudes of certain environmental activists.

“We need to learn to make do with taking just the basic steps. For example, when it comes to dealing with waste management, we aspire to turn it into gas or electricity immediately upon being burned, and then for it to be connected to Male’ and Hulhumale’ via submarine cables,” he said.

“Now if we are to have expectations as high as this, we will never be able to deal with the issue practically.”

Adheeb added that if people were concerned about the environment, they should equally consider the issue of waste management, claiming a failure to solve the issue would make it very difficult for the tourism industry to survive.

“Why not just take the basic steps and get rid of the waste?  Previous leaders have tried to make Maldives a leading name whenever the topic of environment comes up. But no real solutions were found in the past three or four years,” he said.

Adheeb also contended that the present focus of environmental activism within the country was proving detrimental to tourism development, as well as ignoring advances in construction techniques being used by the industry.

“From what we have seen, if we try to get an EIA (Environmental Impact Assessment) done for the purpose of beginning construction of a resort, the environmentalists suddenly get very concerned. Or if we try to reclaim land, then again the environment becomes so very important. But Hulhumale’ and Reethi Rah Resort are very good examples. In Maldives, even through reclamation, we can make things natural,” he said.

Cooperation

State Minister for Environment and Energy Abdul Matheen Mohamed stated today that while waste management issues could pose problems for the tourism sector, he believed it could be better managed and solved faster if the Tourism Ministry would provide more cooperation on related work.

“I don’t think Adheeb’s statement on taking initiative in waste management is a very responsible one. Since a lot of resorts take garbage to Thilafushi and end up dumping it into the sea,” he claimed.  “We have approached the Tourism Ministry with plans to place Environment Officers in resorts to monitor this. It would be good if that ministry would cooperate a bit more than they do now.”

Matheen confirmed that the negotiations with Tatva over a new deal on the previously agreed waste management project had now been concluded. He said that a final decision would be reached after it is submitted for the Economic Committee’s approval this coming week.

Aside from future projects to better manage waste, Male’ City Councillor Mohamed Abdul Kareem today claimed that the municipal council has not been allocated sufficient funds for waste management work in the 2013 budget passed last month by parliament.

Karrem claimed that the council had this week already been temporarily forced to facilitate alternative methods of shifting large amounts of garbage after Waste Disposal Site Number 2 in the capital was closed owing to machinery failure.

“We have managed to reopen the site today, after having cleared up the place again. One of our biggest concerns for this year ahead of us is that the state has not provided our council with any funds to deal with this issue of waste management,” Kareem stated.

“Negligence”

In a direct response today to Adheeb’s comments, Male’ City Mayor ‘Maizan’ Ali Manik alleged that the waste management issue had been delayed owing to negligence on the part of the current government.

“Adheeb belongs to the group of people who are extremely good at ‘taking over’ everything, so there is not much we can do if he ends up taking over waste management work. However, if all goes accordingly, Tatva will commence work in March,” he said.

Manik further stated that although it was MCC that had initially signed the contract with Tatva, the Ministry of Environment had now taken over and was proceeding with discussions with the company without involving the council.

Manik said that the council had had some discussions with the Ministry previously, where they had pledged support to the project.

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Yacht Tours to take legal action over resort termination

Yacht Tours, a company owned by Maldivian Democratic Party (MDP) MP Abdulla Jabir, has said it will take the government to court over the recent termination notice it has been sent in relation to unpaid rent.

At a press briefing held today, Yacht Tours Executive Director Ibrahim Rasheed explained that the company currently owed approximately US$5 million (MVR 77 million) to the state.  According to Rasheed,  one-third of this debt was actual rent payments, while the rest amounted to fines accumulated over recent years.

“We have previously paid USD 1.5 million dollars (MVR 23 million) to the state as an advance for our island Watavarreha. Just after we made the payment, a new law was passed and it came about that this was something our company did not really have to pay,” Rasheed explained.

“But then, keeping the financial status of this nation in mind, our company did not push too hard to get reimbursed. Instead, we requested the government to use this money for rent adjustment of our other resorts,” he said.

Rasheed also gave details of the company’s official communications with the government in regard to the request it had been sent, providing the media with copies of letters exchanged between the state and the company.

Yacht Tours had requested the then Minister of Tourism, Arts and Culture, Dr Mariyam Zulfa, to arrange rent adjustment of the resorts Kudarah and Alidhoo from the Watavarreha advance, which the company said it was owed by the government.

A follow-up letter, dated August 21, 2011, stated that according to the Maldives Inland Revenue Authority (MIRA), the government owed the company US$1,115,374 (MVR 17,176,760).  At the same time, the company was said to owe a total amount of US$1,300,418 (MVR 19.9 million) in charges for the three resorts to the state.

The former tourism minister had then sent a letter on August 21, 2011 to the Ministry of Finance and Treasury, asking the rent adjustment to be processed as was requested by the company.

In a letter dated 27 September, 2011, a letter exchanged between the President’s Office and the Ministry of Finance and Treasury stated that advance money paid by a company can be used as rent adjustments for another resort or tourist business owned by the same company.

Following the transfer of power in February, Yacht Tours had again approached the Tourism Ministry to settle the matter of rent. On 22 February 2012, Yacht Tours wrote to current Tourism Minister Ahmed Adheeb, once again detailing the issue and asking for rent adjustment.

According to the company, Adheeb has failed to respond to the letter.

At a press conference on held December 31, 2012, Adheeb said that Yacht Tours had been sent the termination notices for both the Alidhoo and Kudarah resorts, with a seven day period for handover.

He added that while the ministry had come to a payment system agreement with a number of other companies, Yacht Tours had sent no official written communication in regard to the payment of outstanding rents.

In response, Rasheed claimed he was deeply concerned about the comments, accusing the minister of making a false statement.

“We wrote to the ministry just after he was appointed. We still haven’t received a response to the letter sent back in February. We have also met him officially at a number of instances to discuss this matter. The last time, right after the termination notices were sent in late November, I personally went with Jabir to a meeting with the minister to discuss this issue. At the time, the Minister had said that he was working on it, to arrange rent adjustment,” Rasheed said.

“We are very saddened that the minister has gone and said there are no communications between Yacht Tours and the ministry.  If, let’s say, the current government considers all the letters we have exchanged with the previous governments to be void, then we should be notified of that. Makes me wonder if Adheeb thinks he is the first minister of tourism of the country. With the current actions in mind, it is hard to see Adheeb as a capable minister,” he added.

Yacht Tours Managing Director Ibrahim Shiham spoke about the huge loss the company was facing due to the government’s actions.

“Many of the bookings are getting cancelled. We are also experiencing delays from business partners and financiers. Foreign investors are very concerned about the government’s actions. The market value of the islands are at US$100 million (MVR 1.5 billion) now. And they are trying to terminate this over a value of US$5 million (MVR 77 million).

“Our wish is to settle the matter through dialogue, but now that we have been given seven days to handover the resorts, our legal team will respond to it. We will be taking the matter to court,” Shiham said.

Yacht Tours Chief Executive Officer (CEO) Mohamed Zuhair expressed concerns over the state’s treatment of companies in the tourism industry.

“It goes without saying that all companies in this same industry must be treated equitably and fairly. However, we deeply regret to say that today it is not how things are been carried on. Yacht Tours is not given the same treatment as other companies in the industry,” Zuhair said.

The company furthermore pointed out the silence on the matter of tourism related bodies like MATI and MATATO to be very concerning.

Minister of Tourism Ahmed Adheeb was not responding to calls at the time of press.

Abdulla Jabir is currently not in the country.  Jabir had recently rejoined the MDP from the government-aligned Jumhoree Party (JP).

Last month, staff at Alidhoo Resort alleged both Maldivian and foreign workers had not received pay for several months, despite complaints made to management and various external government organisations.  Minivan News understands some of these payments had since been made by the company.

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MIRA accuses Tourism Ministry of not collecting resort rents

Commissioner General of Taxation at the Maldives Inland Revenue Authority (MIRA), Yazeed Mohamed, has named the Tourism Ministry as the prime culprit amongst state institutions which are failing to collect payments owed to the government.

“If rent on resorts is not paid, the Tourism Ministry must take action in accordance with the agreement. But so far no such action has been taken against anyone,” Yazeed told local newspaper Haveeru.

As MIRA was not party to the agreements made between certain government institutions and third parties, it could not itself enforce or implement payments, he explained.

“If rent is not paid we have to take it up in court. That is to obtain payments not paid for a certain period. Then it is used as an excuse. From that point on they get a free license to stay without making payments. Once a case is filed in court, it can go up to two years without a single payment,” Yazeed told Haveeru.

“Not everybody is penalised equally. There is no differentiation between the parties that pay the amount that is owed or the ones that don’t,” he added.

Despite not collecting payments such as land rents and associated fees, MIRA includes such figures on its monthly statistics.

The figures for August showed that ‘Tourism Land Rent’ collected last month was only 19 percent of the amount collected in the corresponding period last year.

Tourism land rent for the year so far is shown to be only three quarters of that collected by the same point on 2011.

The importance of this revenue stream can be seen in the share of overall revenue tourism land rent alone contributes to the authority’s figures – making up 10 percent of MIRA’s income this year.

Former Economics Minister Ahmed Inaz told Minivan News today that this issue was also a problem under the former Maldivian Democratic Party (MDP) led government.

“The system is not transparent or fair – under the Nasheed government or now,” said Inaz.

“The Judiciary and executive should penalise industries which are penalising the system. The system should be designed for all, not individuals,” he said.

Dr Mariyam Zulfa, Tourism Minister under the Nasheed administration, disputed the suggestion that any resort owners received preferential treatment during her tenure and said that non-compliance was always a problem, everywhere.

“Only about 10 percent of resort operators failed to comply. In every country there are those who do not comply with taxation legislation’s requirements – the Maldives is no different” she said.

MDP members have persistently linked powerful resort owners with what it perceived to be a coup d’etat which saw President Mohamed Nasheed leave office in February.

Shortly after the transfer of power, there was a re-interpretation of the legislation governing island lease extensions which Zulfa predicted would severely reduce government revenue.

“The Nasheed government had requested that those resorts extending to a 50 year lease pay in a lump sum,” she said at the time, “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,” she added.

MIRA’s figures show that revenue from lease period extension fees has been US$11million (MVR168million) so far this year, compared to US$20million (MVR273million) at the same point in 2011.

Minister of Finance and Treasury Abdulla Jihad told the Majlis’ Finance Committee earlier this week that state revenue was expected to be MVR3.1billion (US$200million) less than expenditure this year.

Neither the current Minister for Tourism – Ahmed Adheeb – nor the Deputy Tourism Minister – Mohamed Maleeh Jamal – were responding to calls at the time of press.

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President appoints two deputy ministers

President Mohamed Waheed Hassan appointed two deputy ministers on Tuesday to serve the tourism and transport ministries respectively.

Hussein Lirar (Gaaf Dhaal Hoadhedhoo, Finifenmaage) was appointed to the Ministry of Tourism, Arts and Culture, while Abdul Latheef Mohamed (Hulhumalé 10213) was appointed to the Ministry of Transport and Communication.

The new appointments come after President’s spokesperson Abbas Adil Riza told local media in early March that no new appointments would be made.

Waheed now has 14 ministers, 16 state ministers and 20 deputy ministers.

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