Tag: Tourism

Maldives mulls tourism future as China reaches quarter of all arrivals

China has accounted for just under a quarter of all visitors coming to the Maldives for the first nine months of 2012, contributing substantially to a 3.4 percent increase in arrivals compared to last year despite declines in established European markets.

The Ministry of Tourism, Arts and Culture has said the figures indicated that the country remained on track to meet its aim of welcoming a million visitors in 2012.

Tourism authorities also said that despite the growing importance of China to visitor numbers, European markets remained the main overall contributor to the Maldives tourism sector.  As the country looks to commemorate 40 years since the introduction of the travel industry, officials have said that even declining custom from markets like the UK has begun showing positive trends in terms of demand for more lucrative high-end holidays.

According to the statistics, between January and September 2012, there were 691,608 tourist arrivals in the Maldives.  During September 2012, 76,806 visitors travelled to the Maldives – an increase of 6.9 percent over the same time last year.

In terms of regional demand, the ministry figures showed that European arrivals fell by 2.9 per cent between January and September to 376,674 people over the same period in 2011.  A five percent increase in traffic from Central and Eastern Europe was ultimately insufficient to offset double-digit declines in travellers from northern and southern European countries.

Arrivals from the Eastern Mediterranean region were also up between January and September by 10.4 percent to 5,191 people. In the region, tourists from Turkey and Israel coming to the Maldives increased by 7.6 percent and 21.8 percent respectively over the same period.

During September 2012, European arrivals overall fell 3.2 percent to 33,975 over the same time last year.

The statistics showed that the Asia Pacific region has continued to drive growth in visitors to the Maldives, with 275,343 arrivals between recorded January to September 2012 – an increase of 10.2 percent.

According to the figures, arrivals in September alone from the Asia Pacific region reached 38,483, up 17.5 percent on the same time last year.

Key to this regional growth has been demand from China, which for the first nine months of 2012 accounted for 24.5 percent of all tourism arrivals to the Maldives.

In the Americas, total arrivals from the region rose 12.3 percent to 18,375 for the first nine months of the year, with Brazil Canada and the US all posting growth. The US was the region’s largest market over the period with visitor numbers up 10 percent to 10,899 people.

Visitors from the Middle East were also up for the first nine months of the year by 54.6 percent over the same time in 2011, amounting to 16,211 people. However, visitor numbers for the region fell by 3.3 percent during September when compared to the same period of time in 2011.

Arrivals from Africa between January and September this year were up by 9.8 percent to 5,005 compared to the same period this year.

For every month of 2012 since February, resort occupancy has been down on a single figure basis, a trend continued into September with occupancy at the country’s island tourism properties falling 5.5 percent over the same period last year.

Occupancy rates have also fallen for hotels, guest houses and safari boats when compared to the nine month period between January and September 2011, according to the statistics.

Encouraging figures

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News that the figures were encouraging for the industry. Maleeh stressed that this encouragement was not representative just of growth in Asia, but also due to the performance of key markets like Germany and Switzerland.

“Some 55 percent of traffic [during 2012] has still come from Europe,” he said.

However, even in markets like the UK, which for the first nine months of the year saw visitors fall by 13.7 percent to 67,987, Maleeh claimed the decline failed to reflect a changing customer demand for high-end holidays in the country.

Having recently returned from visiting London for the World Travel Market 2012 travel fair, Maleeh said that industry insiders and travel operators he had spoken to at the show identified a shift in the UK market towards more lucrative higher-cost packages.  He added that with the overall economic situation in Europe still uncertain, it was important to keep an industry presence in the region.

“We will be keeping a presence in these markets and wait for them to bounce back.  Countries like Germany and Switzerland have shown good growth,” he said.

Master plan

Along with celebrations to commemorate 40 years since the introduction of tourism, the ministry has said it also expects to unveil its fourth official tourism master plan by year-end. The document is anticipated to outline developments across the industry – dealing with the expansion of biospheres and other “value-adding” focuses – as well as an integrated plan to promote the destination internationally.

“We are working on the fourth tourism master plan in line with groups like the United Nations Development Programme (UNDP) and the World Bank to focus on a destination strategy,” Maleeh said.

Following February’s controversial transfer of power, the incoming government of President Dr Mohamed Waheed Hassan sought to utilise public relations groups and advertising to try and offset the impact of negative news headlines resulting from the change in government.

This focus has included agreeing a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services, as well as signing a £93,000 per month (US$150,000) contract with public relations group Ruder Finn to try and improve the country’s image internationally.

Having previously claimed that the “hard days” were over for Maldivian tourism, Maleeh said he hoped the government – currently facing increasing pressure to reduce its fiscal deficit by the International Monetary Fund (IMF) – would provide a sufficient promotional budget to support such plans.

“The Maldives should be present in two to three of the largest news sources, these are CNN, the BBC and the National Geographic channel,” he said.  “These are frequently watched by major investors. Tourism is vulnerable and we need to have continuous engagement and visibility, if not, it can be a case of out of sight out of mind.”

While unable to outline the exact scope of the new master plan, Maleeh said that as President Waheed this year announced a strategy to make the Maldives the world’s largest marine reserve within the next five years, the commitment could prove particularly beneficial to tourism.

“Since the foundation of tourism 40 years ago, the environment has always been hugely important to the Maldives. After 40 years the country is still pristine making us very popular with tourists and we welcome any actions to encourage maintaining this,” he said.

Maleeh added that the foundation of reserves in the country at destinations like Baa Atoll was helping the area become a “premium destination within a destination”, adding further value to properties located in an area of strong natural interest.

Along with the potential benefits of operating as a marine reserve, Maleed claimed that the country’s status of being a protected marine reserve would not itself impact on the type of tourism developments being sought in the Maldives. These plans have included ambitious proposals such as the construction of five man-made islands to support leisure developments including a 19-hole golf course in the Maldives.

Maleeh claimed that he did not think these type of projects would be threatened by the Maldives protected reserve status, with developers still being required to work within existing environmental laws that impose several restrictions on the amount of development possible on each island.

“All plans are required to undergo an Environmental Impact Assessment (EIA) and resort developers are very good at working within these parameters,” he said.

In Baa Atoll, which has been awarded the United Nations Educational, Scientific and Cultural Organization (UNESCO) Biosphere Reserve status, several resort operators have said they remain uncertain as to the direct impact protected marine areas may have on their operations.

Reethi Beach Resort General Manager Peter Gremes has previously told Dhonisaurus that while obtaining the UNESCO reserve status last year was a “prestigious” accolade for properties in the atoll, it was unlikely to impact visitor numbers on a significant basis.

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National airline expands services to India

Maldivian airlines have announced plans to expand regional services to a further three destinations in India this month.

The Island Aviation Services (IAS)-owned company is to introduce flights to Mumbai and Chennai as of tomorrow (November 15), operating services to both cities will three times per week.

Maldivian will simultaneously launch services to Dhaka, the capital of Bangladesh via Chennai, and new services to the capital New Delhi from Male’ to commence in April 2013.

The airline currently connects Trivandrum from Male’ daily.

The move comes after IAS inducted an A320 aircraft into its fleet configured with 12 business class and 138 economy class seats.

GMR Male’ International Airport Pvt. Ltd CEO Andrew Harrison noted that the growing number of tourists from India as well as Maldivians travelling to India would benefit from these new services.

“We look forward to further expansion of Maldivian’s routes to India and beyond for the benefit of passengers and cargo shipments,” he added.

Flights to and from Male’ and Mumbai will operate on Wednesday, Friday and Sunday, whilst flights to and from Male’ and Chennai will operate Tuesday, Thursday and Saturday.

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MDP MP Mariya Ahmed Didi calls for debate on sale of alcohol to tourists in local guest houses

Former Chairperson of the Maldivian Democratic Party (MDP), MP Mariya Ahmed Didi, has called for debate over the sale of alcohol to tourists in local guest houses, in a bid to promote mid-market travel to local islands.

Didi made the remarks during the debate in parliament over the proposed bill calling for the blanket prohibition of pork and alcohol imports to the country, sponsored by fellow MDP MP Nazim Rashad.

During the debate, Didi raised several questions on the issue including whether alcohol should only be sold by wealthy business tycoons, such as leader of Jumhoree Party (JP) MP Gasim Ibrahim and Hussain ‘Champa’ Afeef.

“When we travel to several islands to prepare our election manifesto, and when we discuss about opening guest houses, the subject of allowing sale of alcohol in guest houses with provisions excluding sale to locals has to be discussed,” she said.

She further stated that before giving such a permit, views of the religious scholars in the country must also be sought. Didi added that it was important to know from religious perspective whether such sale could be carried out in the Maldives or whether the Maldives could consume the profits made by through sale of alcohol while remaining an Islamic country.

Didi called on parliament to accept the bill proposed by MP Nazim Rashad and have it sent to a parliamentary committee, to then seek the views of religious scholars.

Unlike many other Islamic nations such as Qatar, Dubai and Abu Dhabi where the sale of alcohol is licensed to hotels and foreign workers, the Maldives classifies alcohol as a restricted substance and bans its use and sale on ‘inhabited’ islands.

The resort islands are classified as ‘uninhabited’ under Maldivian law, although technically under the Constitution no law can be enacted against a tenet of Islam, which potentially affects those relevant to the import, sale and service of haram products such as pork and alcohol.

“Clarified and addressed”

Speaking to Minivan News, Didi said that the issue of alcohol needed to be “clarified” and “addressed”.

“If this is a religious issue, that is if Islam bans sale of alcohol, it should not be sold in the Maldives as we are a 100 percent Islamic nation. If the sale is allowed, then the question to ask is whether alcohol is needed for the tourist trade to flourish,” she said.

She added that if alcohol proved to be a vital element in the tourism sector, then the sale of alcohol should be allowed for “registered places” to which a permit is given to accommodate tourists including resorts, safari boats and guest houses.

“If the objection to the sale of alcohol is on [religious] grounds, it should not be sold in places where Maldivians reside. But Maldivians do reside on resorts as employees. If we deny Maldivians the employment opportunities in the resorts, then the income from resorts will be restricted to those who own resorts, that would give way to increase in expatriate workers and foreign currency drainage,” she explained.

Didi stressed that the bill must be admitted to a parliamentary committee and “clarify” from religious scholars the position of Islam that concerns the issue at hand.

“Every island I have travelled to, most locals who I come across want tourist guest houses on their islands and employment opportunities where they can work and still go back home to spend time with their families,” She added.

The bill calling to ban the sale of pork and alcohol was proposed in October.

Presenting the bill, Nazim argued that the import of these products violates article 10(b) of the constitution which states that “no law contrary to any tenet of Islam shall be enacted in the Maldives.”

“We often hear rumours that people have alcohol at home in their fridge, available any time. We’ve heard that kids take alcohol to school to drink during their break. The issue is more serious than we think, it should not be ignored,” Nazim told the house.

Consumption of intoxicants or pork products is prohibited under Islamic law.

Previous attempts

When in charge, the MDP government announced that it was considering banning pork and alcohol products in response to the December 23 coalition’s campaign to protect Islam.

Then Press Secretary for the President, Mohamed Zuhair at the time said that trade of alcohol was not a business conducted by the government. He added that the government receives a relatively large amount of money through this trade from Goods and Services Tax (GST).

“The businessman running the trade of alcohol receives a huge amount of profit through this business as well,’’ he said. ‘’The government is now considering banning trade of alcohol and pork throughout the Maldives.’’

The decision was followed after a mass protest against the government held by the December 23 coalition, consisting of several religious NGOs and opposition political parties, called on the government to ban the sale of pork and alcohol among other demands.

After being asked in January for a consultative opinion over whether the Maldives could import pork and alcohol without violating the nation’s Shariah-based constitution, the Supreme Court unanimously rejected the case on the grounds that the matter did not need to be addressed at the Supreme Court level.

The Court did note, however, that pork and alcohol have been imported under provisions of the Contraband Act and that there is a regulation in favor of the trade. As no law has declared the regulation unlawful, the import of pork and alcohol is indeed legal, the court claimed.

Meanwhile, Article 10 of the Constitution states that “No law contrary to any tenet of Islam shall be enacted in the Maldives.”

The Constitution also states that any law not struck down by the courts is valid.

Since resorts first opened in the Maldives in the 1970s, tourism has been the core of the island nation’s economy. To accommodate the industry as well as the national Islamic faith, in 1975 the Ministry of Economic Development regulated the sale of pork and alcohol to tourist establishments (Act 4/75).

While there is no regulation or set of guidelines specific to spa operations in resorts, Article 15(a2) of the Goods and Services Tax Act stipulates that spas are legally accepted in the Maldives as tourism goods, and therefore may be operated in compliance with tourism regulations.

After its formation in 2009 the Parliament had nine months to reject any legislation which did not conform with the Constitution.

Parliament did not reject the regulation on the sale of pork and alcohol in 2009, thus allowing it to stand by default.

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Government confident of meeting 2012 tourism goals despite “political turmoil”

Maldives tourism authorities remain confident the country will meet its ambition to welcome one million visitors to the country during 2012 despite ongoing “political turmoil” in the Indian Ocean over the last year.

The country plans over the next 12 months to hold a number of celebrations to commemorate 40 years since its travel industry was founded.

Minister of Tourism, Arts and Culture Ahmed Adheeb has told media in a press conference on Monday that should the Maldives achieve its aims of attracting one million visitors to the country during 2012, it could be effectively seen as being equivalent to welcoming two million arrivals due to the challenges of overcoming the “political turmoil” following February’s controversial transfer of power.

“We are closing in on that target with a lot of challenges. We are working with major obstacles due to the present crisis in the country,” Adheeb was quoted as saying.

The comments were made as former President Mohamed Nasheed, who alleges he was forced to resign from office on February 7 this year under “duress”, pleaded for tourists to “be more aware” of the political problems facing the Maldives.

“Tourists should be more aware of what is going on here. They may think they are remote from Male’ [the capital] but many of the staff are from here,” Nasheed told the UK-based Guardian newspaper this week.

The vast majority of tourists coming to the Maldives stay at its secluded island resorts that are classed as uninhabited, therefore making them exempt from local laws that outlaw the sale and consumption of alcohol and pork products, as well as openly practising any faith other than Sunni Islam. This resort model also keeps most tourists away from the partisan politics of the country, as well as the  unrest that occurred in the capital of Male’ and other islands earlier this year.

Nasheed had previously called for a tourism boycott of the Maldives, as both himself and his supporters continue to question the legitimacy of the government of President Dr Mohamed Waheeed Hassan, his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition Maldivian Democratic Party (MDP).  The party are still pressing for early elections this year, despite a Commonwealth-backed Commission of National Inquiry (CNI) concluding the transfer of power in February was constitutional.

Despite fears about the impact of political uncertainty, Deputy Tourism Minister Mohamed Maleeh Jamal claimed back in September “the hard days” were over for the Maldives tourism industry following the release of the CNI’s findings.

The MDP has itself accepted some of the recommendations of the CNI report relating to judicial reform and holding security officials accountable, despite maintaining “concerns” over how the report was compiled and the potential “comical” implications of its conclusions.

Accepting the challenges faced by the tourism industry, Adheeb claimed that the entire industry was united in seeking to boost the prospects for tourism in the Maldives.

“The industry is driven by itself. This industry is mature enough to continue without any government interference. The difference between the former government and us is we won’t micro manage the industry. We are facilitating the process within the contours of the laws and regulations,” he told local media.

Amidst these claims, the Maldives last Thursday (October 18) picked up a number of accolades at the World Travel Awards (WTA) in Singapore that Adheeb claimed highlighted the strength of the country compared to other Indian Ocean destinations.

“This shows that Maldives is a stronger tourist destination than other Indian Ocean island nations such as Seychelles, Mauritius or Madagascar,” he was quoted as telling Sun Online.

The accolades picked up by the Maldives at this year’s WTA included awards for being the leading destination in the Indian Ocean for cruise and honeymoon holidays.  Also honoured was Ibrahim Nasir International Airport (INIA) – presently at the centre of legal and political wrangling – which took the prize for leading regional airport.

Over half way

As the Maldives also commences a number of events to celebrate 40 years since the inception of the country’s tourism, official figures from August showed the Maldives was over half way to meeting its million visitor aims for 2012.

Arrivals to the Maldives between January and August 2012 totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011, Ministry of Tourism, Arts and Culture figures showed.

Deputy Minister Maleeh was unable to respond to Minivan News about Adheeb’s comments and the challenges facing the wider tourism industry at the time of press.

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UK police to re-submit information in Maldives over death of British couple in quad bike accident

UK police are to resubmit requests from relatives of a British couple killed in a quad bike accident last year at Kuredu Island Resort, regarding their preferred method of sentencing in a Maldives court.

Swedish national, Filip Eugen Petre, a son of a shareholder in the resort, is facing trial for his alleged role in driving a quad bike at Kuredu on August 6, which crashed into a tree while carrying British nationals Emma and Jonathan Gray.

Court officials in the Maldives confirmed that the trial has been awaiting a response from relatives of the deceased couple on their preferred punishment for the accused, information one relative has said was passed on by UK police to their Maldivian counterparts a number of months previously.  However, further hearings into the trial have not been held for several months.

Director of the Department of Judicial Administration Ahmed Maajid said the trial had not progressed as court authorities were awaiting the word of the deceased couple’s families on their preferred mode of sentencing for the accused, should he be convicted.

“A Criminal Court media officer tells me that what remains in the case is to obtain the word of the family of one of the victims, as to whether they want a sentence of execution, or blood money or to forgive,” Ahmed said.

“These are the options given to the family of a murder victim in Islamic law, subsequently in our penal laws too.  The court has sent the necessary documents to the concerned parties, but that there has been no response,” he claimed.

A relation of the Grays confirmed that neither victim’s family had received any official notification from the Maldivian courts themselves.  However UK police, through a family liaison officer, confirmed that their Maldivian counterparts were informed “months ago” of the families’ preferred sentence.

“The police have said that they are going to re-submit the issue to the Maldives police today,” claimed the relation. “That’s what is holding up the case right now, [the police] do not seem to have forwarded this information to the courts.”

The relative added that while they did wish to see some form of punitive sentence for the driver if he was convicted, they did not want any severe or long-term action to be taken against the defendant.

“He’s just a young guy. We don’t want to see his life ruined,” the relative said.

Jonathan Grey’s mother Cath Davies told UK-based newspaper the Halifax Courier in March that the prospect of Petre facing the death penalty was “shocking. It’s absolutely horrendous.”

Minivan News was awaiting confirmation from the Maldives Police Service at the time of press as to whether they had so far received the word of the families of the deceased couple and had in turn passed on the information to judicial authorities.

Previous hearings

In previous hearings, the prosecution claimed that the charge of ‘disobedience to order’ Petre stands accused of resulted from his decision to carry people on a vehicle which was not intended for passengers.  The prosecution contended that his criminal action began from the moment he allowed the couple to ride with him on the vehicle.

According to Article 88 of the Penal Code, disobedience to order is a crime and according to Article 88(c), if the result of violating the article is linked to a death, the case shall be dealt accordingly to Islamic Sharia.  The prosecution has previously contended that under Islamic Sharia, if an offender’s action is found to caused the death of a person, the offender shall be punished.

Under the Maldivian constitution, courts resort to Sharia in areas established law does not cover.

Presiding Judge Abdul Baary Yousuf declared in court during earlier hearings that Petre’s lawyer had himself confessed during the trial that his client had driven the quad bike carrying Emma and Jonathan Gray as it crashed on the tourist property.  As a result of this confession, the judge said the state did not have to produce any evidence to prove Petre was the driver of the vehicle during the collision.

Representing the prosecution, State Attorney Aishath Fazna also contended that because Petre had “confessed” to driving the quad bike, she did not believe the state had to produce evidence to support this assumption.

However, Petre’s lawyer Areef Ahmed responded at the time that his client had not directly confessed to driving the quad bike and argued that his client continued to deny the charges against him.  Areef additionally claimed that the judge could not declare a verdict regarding the alleged confession said to have been during the previous hearing.

Areef contended that his confession could be withdrawn before the case reached to a conclusion, but the state attorney argued that after confessing in the trial, there was no way it can be withdrawn.

Petre’s lawyer has also contended that his client could not be charged under Islamic Sharia because his client is non-Muslim.

“Most tragic event”

Following the quad-bike incident in 2011, Filip’s father Lars Petre provided a statement to Minivan News in which he described the accident as “by far the most tragic event in my life, and words cannot describe how saddened we are. I and my family are deeply concerned with errors on some of the media reports and we are also deeply saddened by some accusations made at my son.”

“My son Filip Petre (23 years) was taking the two guests home, to the other side of the island, when he experienced some difficulties with the bike, and crashed headlong into a tree on the road. The crash took two lives and badly injured my son,” he added.

“He fell unconscious with the crash and woke up some time later to find the two deceased also lying on the road. He immediately called for help and worked alongside with the doctor who arrived to try and save the victims of the crash, while he was bleeding himself,” Lars Petre said.

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Maldives travel retail in the spotlight after airport sells US$39,000 bottle of whisky

This story was originally published on Minivan News’ spin-off travel review site, Dhonisaurus.com.

Ibrahim Nasir International Airport (INIA) in Male’ has become the second duty free operator in the Asia Pacific region to sell a recently launched US$39,000 (MVR592,000)  bottle of whisky, reflecting what one retailer said is the growing significance of the destination for providers of high-end luxury goods.

Earlier this month, resort chain Anantara announced it would be offering guests a limited edition elephant-harvested coffee – priced at US$1,100 per kilogram – to target high-end gourmet appeal.

While the sale and consumption of alcohol products outside of the country’s airport and resort properties is prohibited under local law, the Maldives National Chamber of Commerce and Industries (MNNCI) said there remained definite potential for local industry and crafts to profit in a market like INIA, despite the MNNCI’s “concerns” over the development.

According to the Moodie Report, an influential travel retail publication, one Chinese passenger travelling through INIA this month purchased the limited edition commemorative Balvenie Fifty whisky just nine days after it had gone on sale at the site. Only 88 bottles are said to have been produced.

“With the Maldives being a top luxury travel destination in the Indian Sub-Continent, we believe that Malé duty free can act as a gateway to the great collection of rare and vintage malts,” distiller William Grant and Sons’ Indian Sub-Continent Brand Development Manager Neeraj Sharma told the trade publication.

GMR, the Indian infrastructure group with a concession agreement to manage and develop the new airport terminal and retail facilities, has taken exclusive rights to certain duty free items to be sold at INIA.

However the GMR contract, which was drafted with assistance from International Finance Corporation (IFC), has come under intense criticism in the country’s political circles, with some key MPs and now government-aligned parties accusing the company of corruption and seeking to “enslave the nation and its economy”.

GMR has denied the charge, contending that it is contracted to operate as a caretaker for the site, which continues to remain Maldivian owned.

However, in the same week when INIA was selling the exclusive whisky to a passenger, local groups supporting a move to “re-nationalise” the airport continued to campaign to sway public opinion against the developer, releasing a large balloon in the capital adorned with the message “go home GMR”.

The government and GMR are presently involved in an arbitration case in Singapore concerning GMR’s levying of an airport development charge.

Authentically Maldivian

MNCCI Vice President Ishmael Asif said aside from selling exclusive duty free goods, local manufacturers of products such as wood carvings and traditional clothing could also benefit from operating in INIA.  However, Asif stressed that local laws needed to be amended accordingly.

“There are no local laws right now protecting authentic Maldives products. The goods being sold as Maldivian often come from other countries and do not reflect our traditions and culture,” he claimed, pointing to the types of products sold in stores on busy retail streets like Chaandhanee Magu in Male’ as an example.

Asif claimed that legislation outlining quality and production standards could greatly boost the profitability and market for local techniques such as wood carvings of fish and dhonis (local boats) as well as smaller items like drums used in bodu beru – a local musical form combining rhythmic drumming and dancing.

According to the MNCCI, factories previously existed during the 1990’s specialising in such local woodworking techniques, which used paints and fabrics derived from local materials and colourings. Asif claimed that these factories were no longer in operation outside of some specialist operations supported by resorts based in Baa Atoll.

“We have been trying to work on a special logo that can be used to identify local Maldivian products, this is something that could be done and used at the airport,” said Asif.

The MNCCI added that in recent years, specialist retail groups had set up operations to try and provide authentic products to the country’s lucrative tourism trade, but had more recently struggled to maintain a property in the capital. The commerce group added that organisations such as the UN were now being sought to provide support to such enterprises to help maintain local cultural practices.

In terms of high-end luxury products, Asif added that traditionally INIA – formerly Male’ international Airport – had been viewed locally as a way to bring tourists to the country, rather than as a means of making money as a retail location.

“We are known [as a destination] for having expensive resorts, and the Maldives has tried to develop the best resorts in the world,” he claimed.  “GMR seem to feel this is only a place for the elite, [while] we need to accommodate everyone.”

GMR said that as part of a redevelopment of the existing airport terminal, new restaurant properties providing fast food and Thai specialities – particularly popular with Maldivians – would be opened to both passengers and local people.

Yet despite the untapped retail potential for Maldivian products at INIA, the MNNCI said it held “concerns” over the airport agreement with GMR, which was signed with the previous government, and complained it had not been consulted about developing local retail potential.

Asif has previously said that the MNNCI held concerns about the impact of the GMR deal on local businesses, alleging that a planning council related to the infrastructure group’s bid had not been open to the public or its members.

He pointed to the case of local enterprises such as MVK Maldives Private Limited, which in December last year was ordered by the Civil Court to vacate the Alpha MVKB Duty Free shop based at INIA after its agreement had expired.

However, speaking to private broadcaster Raaje TV last month, former Economic Development Minister Mahmoud Razee, who worked with the previous government and international partners on the GMR agreement, denied the deal had resulted in local enterprises being kicked out.

“The privatisation policy does not itself kick others out. It is about honouring the contract. No one has actually been kicked out, but private parties have opportunities to participate. The issue that has always existed is getting cheap capital for small scale businesses,” he said at the time.

Razee claimed that the GMR deal reflected a commitment by the former government to pursue privatisation as outlined in the Maldivian Democratic Party’s (MDP’s) manifesto.

“Firstly, if or when anything is run like a business, private people are more skilled and efficient. They are far more competent and they work for profit unlike the government,” he claimed.  “This means it requires less cost for the government, but needs more outside investment or capital. Private people are more skilled and efficient in terms of managing. The end product thus is more beneficial.”

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MIRA files first GST-related court case

The Maldives Inland Revenue Authority (MIRA) has filed the first case related to the Goods and Services Tax (GST) with the civil court.

The case was filed on September 13 before being formally registered with the court last Saturday, September 27.

MIRA are claiming US$2,606.86 (MVR40,132) from DeMal Pvt Ltd for Tourism Goods and Services Tax (T-GST) and the fines incurred for non-payment.

T-GST was first introduced in September 2010 before being subsumed by Goods and Services Tax Act one year later.

GST currently imposes a 6 percent tax on non-tax goods and services in the country. T-GST is currently taxed at 6 percent but will be raised to 8 percent on January 1 2013.

The combined GST revenue stream has accounted for nearly 35 percent of MIRA’s income this year – over US$69million (MVR1.7billion).

Director General of MIRA’s revenue service Fathihullah Jameel was unavailable for comment at the time of press.

MIRA’s Commissioner General of Taxation Yazeed Mohamed last week lamented the inability of the authority to collect certain fees owed to the government, accusing the tourism ministry of being a major part of the problem.

Yazeed singled out the issue of tourism land rent as a major source of unclaimed revenue, arguing that MIRA could only pursue the cases through the courts.

“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.

MIRA’s website shows that the authority is actively pursuing nearly US$17million (MVR261.8million) in fees and fines, with 85 percent of listed cases relating to land rents.

The biggest cases currently being pursued, in terms of revenue being claimed, involve the operators of Six Senses Laamu and Mehudufushi Island Resort, from whom MIRA is claiming US$3.1million (MVR47.7million) and US$3.2million (MVR49.2million), respectively.

The Medhufushi Island Resort case is also among those which have been registered with the court for the longest time. The case was first registered in July 2011 and has seen five hearings, according to MIRA’s site.

Another longstanding and significant case is that concerning the operators of Filitheyo Island Resort, who are being pursued for around US$2million (MVR30.8million) in a case first registered in June 2011 which is said to have had three hearings.

MIRA’s monthly figures show that tourism land rent for the year so far is only three quarters of that collected by the same point on 2011.

The tourism ministry hit back at this criticism earlier this week, with State Minister Mizna Shareef telling Minivan News that MIRA was also empowered to collect rent.

“It is very unfair and inappropriate for MIRA to make these statements,” said Mizna, who argued that the authority had been pressuring the tourism ministry to suspend operating licenses for late-payers without considering the wider implications for the industry as a whole.

“There has to be balance – the industry must be protected while rents are collected,” she continued.

Tourism is by far the largest industry in the country, contributing over 70 percent of GDP via associated industries and 90 percent of all foreign exchange receipts.

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Maldives ministers welcome first visitor at start of 40th anniversary tourism celebrations

The Maldives’ defence and economic chiefs joined Minister of Tourism, Arts and Culture Ahmed Adheeb in welcoming the first visitors to the country since the commencement of 40th anniversary of tourism.

Local media has reported that Defence Minister Mohamed Nazim and Economic Minister Mohamed Ahmed were on hand at Ibrahim Nasir International Airport (INIA) in Male’ this morning to welcome the day’s first tourist arrivals.

Hong Kong resident Sing Kok and his family were met off the plane by officials and presented with a free holiday in the country for being the Maldives’ first visitors as 40th anniversary celebrations began.

Adheeb told the Sun Online news service that a number of commemorative events would he held in the country up to September 27 next year; ranging from presenting awards, hosting major local and international events and providing sessions at the country’s National Museum, detailing Maldivian culture and artefacts.

Following February’s controversial transfer of power, an unidentified group attacked and destroyed artefacts representing the country’s pre-Islamic heritage kapt at the museum.

The US later provided financial assistance totalling US$ 20,000 (MVR 308,400) to help try and restore artefacts placed in the museum.

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Maldives completes Japanese road-show as part of national promo tour

The Maldives Marketing and PR Corporation (MMPRC) has this month completed a Japanese road-show taking in the cities of Fukuoka and Osaka, as part of wider push to bolster arrivals from the country.

Teaming up with the Maldivian travel groups, the MMPRC has said the tour, which concluded on September 9, formed part of plans to provide information to the Japanese press and tour operators ahead of the JATA Tourism Forum and Travel Showcase that concludes today in Tokyo.

An estimated 90 Japanese tour operators were involved in the road-show, according to the MMPRC.

The focus by local travel groups on the Japanese market comes as official travel figures released this month indicated arrival numbers to the Maldives between January and August this year totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011.

According to the same statistics, arrivals from Japan for the first eight months of the year totalled 22,534 – a figure down 0.3 percent compared to the same period in 2011.

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