Tag: Tourism

Disappointment over low government turnout at One Billion Rising event

Organisers at One Billion Rising in the Maldives have expressed disappointment over the number government officials who failed to attend the event, aimed at ending violence towards women.

The international campaign was launched in the Maldives on Thursday (February 14) by NGO Hope for Women at Jumhooree Maidhaan in Male’.

The One Billion Rising campaign began after research revealed that one in three women around the world will be raped or beaten in their lifetime.

The gathering in Male’ featured live music and dance performances, and saw many young men and women in the crowds dancing together.

Despite the event’s popularity with youth in Male’, Chair of Hope for Women, Aneesa Ahmed, said the poor turnout from government officials “showed their lack of commitment” in tackling the issue of violence against women.

“We have been working alongside the Ministry of Gender, Family and Human Rights, and they have invited all government agencies and ministries, but I have hardly seen any of them here,” she said.

“I really don’t know what to say – the commitment is just not there. In the last few years nothing has really been done to help this particular cause,” Aneesa said.

Speaking to Minivan News, President’s Office Media Secretary Masood Imad said that the government was a broad entity consisting of many ministries and that he had not been aware of any specific invite to members of the government.

“As I understand, Acting Minister of Gender, Family and Human Rights] Dr Mariyam Shakeela attended. Some other ladies from the the government were there,” he said.

Masood said a member of staff from the President’s Office had also attended the event, as he had “skipped a meeting he was supposed to attend”.

Last month a study by Human Rights Commission of the Maldives (HRCM) found that support for women’s equality in the country had experienced a “significant drop”.

The report found that fewer respondents – compared to the 2005 survey – believed that women should have equal rights to men.

Aneesa said that the event was aimed towards the younger generation in the Maldives as they do not possess the “prejudices” elderly people have in regard to equality.

“I am particularly happy because there were so many young people here, it is very encouraging. These people will stand up against violence, they are going to be a very strong force.

“In the past few years we have this increasing influence of conservatism in the country and because of this the older generation are more cautious about coming to such an event. Things like dancing, as you see today, we are not supposed to do this,” Aneesa added.

Speaking at the event, Heat Health and Fitness Managing Director Aishath Afra Mohamed spoke about her concerns regarding violence against women in the Maldives.

“Some men are trying to keep their wives in the house, they don’t want women to work and socialise with their friends. They are very possessive.

“The rate of violence is going up and women are keeping quiet about it here. But this event is good to see, the more we make light of the matter, the better it will be,” Afra added.

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Special harbour to be constructed for safari vessels

A special harbour is to be constructed in order to serve safari vessels catering for tourists, the Tourism Ministry has announced.

Deputy Minister for Tourism Mohamed Maleeh Jamal told local media that the harbour will be constructed along with the second phase of the Hulhumale’ development project and that work will begin soon.

“Safaris are in need of a good harbour. So far we have not been able to facilitate this. It is included in the fourth master plan, and during our various meetings, the idea is to build a harbour especially for safaris,” Maleeh was quoted as saying in local media.

The deputy minister did not specify the size or the facilities the harbour would provide, local media reported.

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Maldivians warned of influenza threat in India

Maldivians travelling to India have been warned by the Health Protection Agency (HPA) about the spread of influenza in the north of the country.

HPA’s Epidemiologist Dr Aishath Aruna told Sun Online that the virus had been misreported in local media as swine flu. Instead, influenza H1N1 is not swine flu and is less dangerous.

So far 450 people have been affected by influenza in Rajasthan in northern India, of which 94 people have died from the virus.

Local media reported that most of the deaths have been pregnant women and that the chances of the virus spreading to other parts of the country are high.

Dr Aruna told local media that influenza H1N1 virus had been observed in the Maldives since 2010, and that the virus prolongs and intensifies the symptoms of common colds.

Maldivians visiting India are advised to avoid crowds, wash hands with soap frequently – especially after coughing or sneezing – and make sure to receive vaccinations should your doctor advise you to.

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Tourism budget for 2013 increased by MVR 60 million

The tourism budget for 2013 has been increased from MVR 20 million (US$1.2 million) to MVR 80 million (US$5.1 million), local media has reported.

The budget increase follows criticism from the Maldives Association of Tourism Industry (MATI), which 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.”

Adheeb claimed that government institutions did not realise the importance of promoting tourism.

In 2012, the ministry set a target of welcoming one million tourists into the country.  It was allocated a MVR 70 million (US$4.5 million) budget to conduct marketing activities to help achieve that goal.

Figures released last month revealed that the tourism ministry failed to reach the one million mark by roughly 42,000 arrivals.

Despite the political turmoil that enveloped the country at the beginning of 2012, the figures showed that there had been a 2.9 percent increase on the total number of arrivals in 2011.

Tourism promotion efforts last year included a US$250,000 (MVR 3.8 million) advertising deal to promote the tourism industry on the BBC and a £93,000 per month (US$150,000) contract with public relations group Ruder Finn in an attempt to improve the country’s image following political unrest in 2012.

Despite the increased expenditure, tourism growth slowed to just 0.7 percent in 2012, compared to 15.8 percent in 2010 and 9.1 percent in 2011.

The government’s forecast for economic growth in 2013 is 4.3 percent.

Adheeb told local media yesterday that the government had “re-set” its sights on reaching the one million arrival target in 2013, and said there were plans to participate in a number of fairs and promotions  to attract more publicity.

“If we can fully establish the Maldives brand, we can promote Maldives and subsequently increase room rates. Every single dollar we spend on marketing will give a large amount of money in return,” he said.

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Tourism Minister confident to meet 2013 one million tourist target

Tourism Minister Ahmed Adheeb has claimed the Maldives will post one million tourist arrivals in 2013 after falling narrowly short of the mark last year.

Adheeb told local media that the government had “re-set” its sights on the one million arrival target that was set in 2012.

Last year, a total of 958,027 tourists arrived in the Maldives, with visitor numbers showing an eventual improvement despite the negative impact on the industry from political uncertainty in February.

“I really believe we can bring one million tourists to Maldives. We can very much confirm that when January and February end,” he was quoted as saying in local newspaper Haveeru.

The Tourism Minister said that with Chinese New Year being celebrated this month, the Maldives would see an unprecedented boost in arrivals, local media reported.

“As the Maldives market is based in China, large numbers of tourists come here to celebrate the Chinese New Year. I will say that Maldives’ New Year is already here,” he added.

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US private equity fund buys both Maldivian seaplane operators for undisclosed sum

US-based private equity fund Blackstone has bought a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT).

Blackstone, with annual revenue of US$3.119 billion and total assets of US$18.845 billion, bought the seaplane operators for an undisclosed sum.

Senior Managing Director and Chief Investment Officer at Blackstone’s Private Equity unit based in New York, Prakash Melwani, said the investment “will enable us to build a strong partnership with the Maldives.”

“We are excited to partner with MAT and TMA, whose seaplane operations have contributed significantly to the development of resort islands further away from Male and making them accessible to tourists. Blackstone manages, through its portfolio companies, the largest number of hotel rooms in the world and this transaction marks our sustained enthusiasm for the travel and tourism space,” he said.

Founder of MAT Lars Erik Nielsen and majority shareholders of TMA, Lars Petré and Hussain Afeef, will retain “a substantial shareholding and continue to play a significant role in the companies, including serving as directors on the board,” Blackstone said in a statement.

“The Maldivian economy will gain from the presence of one of the world’s largest and most respected investment firms,” said Petré.

Nielsen stated that the move will benefit the career growth of the workers employed by the two airlines.

“In addition, together we look forward to delivering more efficient services to the tourists coming to the Maldives and the resorts in which they are staying. This combination will increase service efficiency to our resorts,” he said.

TMA Director Afeef said Blackstone would “bring to Maldives a wide global experience and an established track record in the tourism and hospitality sector. Incorporating global best practices would be beneficial not just to the companies but to the tourism industry, in general.”

TMA was started in 1988 as a helicopter operator under the name ‘Hummingbird’, which was changed to TMA in 1998 after the fleet was switched to Twin Otter aircraft. Competing operator MAT was set up in 1992.

Together both airlines operate over 40 aircraft and play both an iconic and critical role in the country’s tourism industry, transferring arrivals at Ibrahim Nasir International Airport (INIA) to resorts in neighbouring atolls and greatly expanding the capacity for tourism around the capital. Domestic air travel over longer distances – to destinations such as Addu Atoll – is served by conventional aircraft.

The substantial investment comes months after the Maldivian government expropriated the main international airport from Indian infrastructure giant GMR, declaring its concession agreement void and ordering it out of the country within seven days. The US$511 million project was at the time the country’s single largest foreign investment.

Tourism Minister Ahmed Adheeb said the Blackstone investment was a sign of confidence in the Maldivian economy, and represented a “green light” to other foreign investors.

“When a large company such as Blackstone invests in the Maldives, it shows that investors have confidence in the Maldives. Moreover, investors have set their sights on Maldives and is on their radar,” Adheeb told local media.

Deal creates a monopoly in critical sector

Former Minister of Economic Development Mahmood Razee, also former Minister of Civil Aviation, noted that the purchase “is not really a foreign investment since no additional equity is being brought into the country. Another firm has just bought the shares,” he said.

Moreover, the purchase of a controlling stake in the only two seaplane operators by a single company had effectively monopolised the market, he warned.

“This is a very exclusive market, and critical to the tourism industry. Even though both MAT and TMA operate the same aircraft, they have not previously been willing to cooperate,” Razee said.

“Now, without any discussion, they have been taken over and effectively become a monopoly,” he said, explaining that the Maldives did not have anti-monopoly laws which may have otherwise obstructed the sale: “We were looking at these when we were putting together the economic reform package [under the former government].”

Previously, resort managers could approach both companies seeking the better price for seaplane services, upon which they were reliant for the vast majority of their guest arrivals: “Now there is no effective competition, as the major shareholder is one and the same,” Razee said.

He acknowledged that “in an ideal world” prices could come down, as the two companies have been operating identical aircraft but duplicating maintenance and other services. However the end of this practice could affect jobs, he suggested.

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Stalled hotel development costing MVR 24 million annually: MTDC

Over MVR 24 million (US$1.5 million) is being lost annually by the Maldives Tourism Development Corporation (MTDC) on a stagnant hotel development in Uligamu in Haa Alif Atoll, it has been revealed.

MTDC Managing Director Mohamed Matheen told Minivan News that the corporation had been making losses on the City Hotel development after construction was halted half way into the project in 2010.

Matheen revealed that along with the City Hotel project – which had cost MVR 120 million (US$ 7.8 million) to develop it to its present state – MTDC’s Herethera Resort had also made a MVR 386 million (US$25 million) loss.

The land for City Hotel was leased to MTDC by the government on February 27, 2007, after which construction on the 100-bed hotel began. According to the 2010 annual report by MTDC, the project was halted after just 40 percent of the development had been completed.

“There have been certain issues to contend with in the project’s development. We have had some difficulties in attracting investors because of the US$1.5 million land rent and problems with the possibility of serving alcohol on the island.

“The previous board of directors had decided to terminate the contract as the land rent is costing too much. However I have made a lot of progress in trying to change that, and City Hotel can be completed by the end of this year,” Matheen claimed.

According to the MTDC website, the Maldives government has leased nine islands to the company “at a rate substantially below the market rate”. MTDC’s 2008 annual report stated that the company has over 21,000 shareholders making it one of the largest public companies in the Maldives.

In November last year, shareholders of MTDC expressed concern after the company failed to pay dividends for three consecutive years while also recording a net loss for the first time in 2011, local media reported.

Minivan News visited the City Hotel development last month with a surveyor who had worked and lived on the site in 2009.

Minivan News witnessed that the entire development, including the inside of staff and residential quarters, had become overgrown with vegetation. Assorted earth-moving machinery was idle and in disrepair.

The MTDC Managing Director stated that MVR 80,000 (US$5,181) per month – MVR 960,000 (US$ 62,176) per year – is currently being spent on the “upkeep” of the development.

“We have 14 people looking after this facility, but it seems they are not able to keep the overgrowth down.

“With another seven to eight million dollars this development would be complete. It won’t cost us much to remove the overgrowth and the rooms were already completed to their rafters. It would involve minor repairs,” Matheen added.

According to the former surveyor – speaking on condition of anonymity –  construction was halted due to external pressures from conservative religious groups regarding the sale of alcohol on an inhabited island.

Asked about this issue, Matheen said discussions had taken place with native islands , however they were “divided” on the issue of alcohol sale.

“The bread and butter of the Maldives is definitely tourism. We are maintaining [Maldivians’] livelihood through tourism, and tourists want different products other than just sun and sand.

“Ninety-nine percent of tourists are drinkers, they are not coming here for many activities, and they are coming for relaxation and peace of mind. We have to cater to their needs,” Matheen added.

A committee formed by Uligamu islanders had submitted a court case regarding the halted development, according to Matheen.

“The island committee is not happy. They also think the development is controlled by the government when the majority is controlled by public shareholders. The government is not a major shareholder.

“The case is a pressure tactic. They think we have the money and they think we are purposefully not building here. They don’t accept the reality of the situation,” Matheen added.

In January 2012, local media reported that five people have been arrested in a youth-led demonstration at Uligamu against MTDC.

The protestors had demanded a reason as to why the development of the City Hotel had ceased, according to local media reports.

Matheen said that he was attempting to reduce the land rent costs as stipulated in the Tourism Act and that a new survey report of Uligamu is to be submitted this year.

US$25 million loss in Herethera Resort

Herethera resort – owned and operated by MTDC – was also said to have made a US$25 million loss following a series of “logistical issues”, Matheen said.

“We had pumped US$53 million into Herethera, however we are paying US$2 million in land lease and our operating costs are nearly 17 percent higher than resorts in the Male’ area because of location being so far away.

“When I took over this role in July, we did not have a single booking at the resort. Now we are fully booked until February 17,” Matheen said.

The MTDC Managing Director revealed that while no other resorts owned by MTDC are currently working at a loss, he admitted that because of the locations of the properties in the far south and far north, there were certain infrastructure issues.

Last month the bidding period for the management or purchase of Herethera Resort was been extended for the third time by the MTDC.

The company has not stated why the bidding period prior to this one ceased, but in previous instances the company said it had to cancel bids due to a lack of interest from potential investors.

ONYX, a company from Thailand, managed the resort until February 2012.

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Maldivian and Indian officials deny reported agreement to address “consular issues”

Additional reporting by Neil Merrett

Indian and Maldivian authorities have both denied media reports that an agreement has been reached on relaxing visa restrictions for Maldivians entering India.

The Indian High Commission in the Maldives today said it has not been made aware of any new agreements with Maldives authorities over amending visa restrictions, despite discussions continuing between the two nations to address “consular concerns”.

Foreign Ministry Spokesperson Ibrahim Muaz Ali also stressed that he was unaware of any official agreement being made to address the concerns raised by Indian officials.

Local media reported today that the Maldives had “agreed” to conditions set out by India in order to relax the conditions recently imposed on Maldivian nationals wishing to obtain a visa.

A spokesperson for the High Commission confirmed to Minivan News that discussions were being held with the Maldives Ministry of Foreign Affairs to address respective concerns raised by both nations.

The Indian High Commission maintained that these discussions with Maldivian officials were “not about conditions”, but rather working to address concerns held by both sides.

“We have a long and cordial relationship with the Maldives that is not based on conditions,” a source at the commission said.

State Foreign Minister Hassan Saeed, speaking during parliament’s Government Accountability Committee on Monday (January 28), said cabinet had decided to find a resolution to issues put forward by India.

“[India] had asked to resolve seven issues. Mostly they highlighted the issues faced by the 30,000 Indians in the Maldives,” he said.

“After the discussions at the President’s Office, we are currently trying to solve these issues,” Hassan was quoted as saying in local media.

During the committee meeting, Foreign Minister Abdul Samad Abdulla said Indian government officials had hinted at the relaxation of the present visa restrictions should the Maldives government agree to extradite its Indian prisoners.

“We have received various signals that the visa issue can be resolved if an agreement can be reached over the Indian prisoners in Maldives,” Samad told local media.

“Moreover, when the Indian media reports on the Indian prisoners in our jails, the officials in the Maldives High Commission in India face various pressures.”

Speaking during India’s Republic Day ceremony in Male’ on Friday, Indian High Commissioner Dnyaneshwar M Mulay pointedly conveyed greetings “to those Indian expatriates who are in Maldivian jails”.

Amd rising diplomatic tensions with its neighbour, Maldivian nationals have found themselves queuing outside the Indian High Commission in Male’ to obtain medical and other visas for travel to India.

Consular issues

The Indian High Commission in the Maldives said among the concerns raised with the government were 11 consular issues relating to the treatment of Indian expatriates in the Maldives.

These included discrimination against Indian expatriates, the keeping of passports of Indian nationals by employers and government agencies, and the exploitation of Indian workers.

“Discussions on addressing these matters are ongoing and we do hope to find resolutions from both sides soon,” said a spokesperson for the commission.

Indian authorities late last month said tightened restrictions imposed at the time on providing medical visas to Maldivians were a “signal” for the country’s government to address concerns about the nation’s treatment of migrant workers.

The Maldives has been on the US State Department’s Tier 2 watch list for human trafficking three years in a row, only narrowly avoiding tier 3 in 2011 due to promises by the former government to resolve the matter.

A lapsed police investigation into labour trafficking in the Maldives in July 2011 uncovered an industry worth an estimated US$123 million, eclipsing fishing (US$46 million in 2007) as the second greatest contributor of foreign currency to the Maldivian economy after tourism.

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Status quo and culture of blame-shifting fueling income inequality: DRP, MDP

The Dhivehi Rayyithunge Party (DRP) and Maldivian Democratic Party (MDP) agree income inequalities are being fueled by vested interests, faulty government policies and a lack of educational training opportunities for youth.

President Dr Mohamed Waheed Hassan Manik recently commented on the growing nationwide income disparity despite revenues doubling in the Maldives over the last decade, during a speech on Kan’ditheemu island in Miladhummadulu (Shaviyani) Atoll.

“The provision of incentives for the poor, and boosting their living standards to a certain minimum, are some of the efforts that could be undertaken,” Waheed said.

However the DRP and MDP have agreed that the government is grossly out of touch with the systemic problems fueling inequality in the Maldives.

“The political elite lead privileged lives and have no idea what is going on here. Many people like [President] Waheed have spent all their time overseas, which explains why public servants are primarily children of privilege with no life experience,” MDP Spokesperson MP Hamid Abdul Ghafoor told Minivan News.

“No one talks about this because they want to maintain the status quo,” he added.

DRP Deputy Leader and Spokesperson Ibrahim Shareef agreed.

“Politicians are blind to the realities of life because of political polarisation. There is no trust, everyone just shifts blame around,” he told Minivan News.

“People in a position to create change must work hard to achieve that change or problems pile up. What President Waheed is saying is one thing – he may be sincere – but let us see if it is different from what he is doing,” Shareef added.

Ghafoor and Shareef both highlighted that work and educational opportunities are very limited and still centralised in Male’. The disproportionate reliance on an inequitable tourism sector creates further income disparities.

“Government has not done enough”: DRP

Shareef told Minivan News the government has not done enough to correct these issues.

The “best and brightest” are forced to leave their islands and settle in Male’ or the resorts primarily located in the atolls surrounding the capital, while the “rich get richer and the poor get poorer”.

“Government policies and vested interests continue to widen the [income] gap that has been created between ‘haves’ and ‘have nots’ over the years, and marginalised development.

“Competing with those [privileged] people is impossible unless we form capable structures conducive to equitable development, open ourselves for broad sections of society to participate in the workforce, and enact policies that redistribute wealth,” Shareef stated.

Shareef also discussed problems that have arisen from high economic dependency on the tourism sector, which was structured inequitably during the 30-year administration of former President Maumoon Abdul Gayoom.

“Gayoom restricted the tourism sector by only allowing ‘certain families’ and allies to build resorts,” Shareef explained.

“Now Maldivians with the capability and vision to build resorts are rarely provided the license or access to investment capital needed,” he added.

Shareef said more resorts targeted toward the “middle market” are needed, in addition to anti-monopoly laws.

He also believes that the education system does not properly prepare youth for the service based economy, and is instead geared toward servicing the government.

Shareef emphasised that this shortcoming has created a huge economic problem whereby over 100.000 expatriates dominate the workforce, particularly among managerial, accounting, and clerical positions in resorts.

“There is something really wrong with the education system. We have very bright and capable youth, but 67 percent still fail O’Level exams,” he said.

“Thus, there are between 30,000 and 40,000 youth without jobs, however they think they are highly-educated so they do not take ‘menial’ jobs, preferring unemployment,” he said.

Shareef said there was an urgent need to reforming the education system to provide vocational training and raising awareness among youth that learning such skills was dignified.

“If youth are not willing, capable, or trained then the income gap widens. They just stay home loitering, spitting on and abusing passers-by.

“Meanwhile, we import labourers to do everything. This is a huge waste of human resources,” Shareef stated, calling for a ‘master plan’ to tackle the country’s social problems.

“Lack of awareness permits slave labour”: MDP

Ghafoor echoed Shareef’s remarks. He told Minivan News that the growing income inequalities are symptomatic of centralised, inequitable resource allocation – particularly in the tourism sector – as well as the lack of skills training for youth within the education system.

“The political right requires the status quo be maintained, which narrows the tourism base, and keeps the poor poor,” Ghafoor said.

“They take advantage of the lack of awareness [among youth and foreign workers], essentially creating conditions of slave labor,” he added.

Ghafoor explained how the educational skills training vacuum for Maldivian youth leads to a dependency on foreign labourers.

“At present there is a dependency on imported labour. Foreign workers – especially Bangladeshis – work under terrible conditions, for cheap, and this has led to a dramatic increase in human trafficking and human rights abuses.”

Ghafoor emphasised the serious resource allocation problem within government policies which compels youth to relocate to Male’ for employment, or seek resort work.

“The young husbands and wives who do find work at resorts are separated from their families for prolonged periods of time. Where else would employees ‘sleep on the shop floor’ and not be able to return to their families at the end of an eight hour work day? This is really impacting the social fabric of the Maldives,” Ghafoor added.

The MDP had many ideas to correct the income disparities fueled by geographic distance, particularly regarding the tourism sector, Ghafoor said.

“The MDP has a plan for radically changing the tourism approach by focusing on providing adequate compensation through a national minimum wage, locations on or closer to inhabited islands, and protecting workers rights.”

Ghafoor emphasised the need for protecting workers rights as a means to not only reduce income inequalities, but also reduce human trafficking – an issue, he said, that has only been discussed openly in the past three years.

“Proper governance, including the integration of International Labour Organisation (ILO) standards into legislation is essential, as is the development of the Tourism Employees Association of the Maldives (TEAM),” he added.

Developing guesthouses on islands “where the average family can profit” was another option for decentralising the tourism sector and creating jobs on local islands.

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