Tag: Tourism

Maldives over half-way towards one million visitor goal following August arrival growth

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, official figures provided by the Ministry of Tourism, Arts and Culture have shown.

With Maldives travel authorities aiming to welcome a million visitors to the country by the end of the year, the figures highlight a 3.8 percent increase in arrivals for August 2012 when compared to the same period the previous year.  A total of 79,768 international arrivals were recorded coming to the country last month.

Although unavailable for comment today, Deputy Minister for Tourism, Arts and Culture Mohamed Maleeh Jamal told Minivan News earlier this month that the country’s travel industry was on target to meet its goal of attracting one million annual visitors – claiming the “the hard days” were over for Maldives tourism.

Maleeh claimed at the time that the industry remained on track to attract one million visitors, despite facing challenges such as the impact of ongoing financial uncertainty on some core European tourism markets like the UK and Italy.

According to the Tourism Ministry figures, for the first eight months of 2012, Europe continued to dominate visitor numbers to the Maldives, accounting for 55.7 percent of all arrivals – down 2.9 percent when compared to 2011.

During August, total European arrivals on a year-on-year basis fell by 9.6 percent to 35,488 visitors.

In Central and Eastern Europe, which includes markets like Russia, Poland and Bulgaria, visitors during August fell 7.7 percent compared to the same period in 2011.

In Northern Europe, which incorporates markets including the UK, Sweden and Ireland, arrivals dropped 14.3 percent to 8,202 last month, according to the official statistics.

Southern Europe also recorded a drop in arrivals with 7,710 visitors from markets such as Greece, Italy and Spain coming to the Maldives – a fall of 24.1 percent compared to the same period last year.

Arrivals were up by 5.6 percent from the Western Europe region on the back of growth in markets such as Germany, France and Austria, with 12,434 visitors entering the country during August 2012.

Europe’s smallest tourism market for the Maldives, Eastern Mediterranean Europe, saw 617 arrivals visitors coming from countries like Turkey and Israel, a fall of 7.9 percent.

The Asian impact

Asia was responsible for 38.5 percent of arrivals in the Maldives between January and August 2012, an increase of 9.1 percent over the same time last year.

Despite the overall decline in European visitors during August 2012 when compared to the same period last year, arrivals from the Asia Pacific market were up 12.6 percent to 38,898. The increase was reflected in increased visitors from key markets throughout the region.

North East Asia, which represents the bulk of the region’s travel market for the Maldives – with countries like China, Japan and Korea – saw arrivals increase by 9.4 percent to 31,020 people.

In South East Asia, visitors to the Maldives rose 45.1 percent during August 2012 to 2,809 from markets such as Indonesia, Thailand and Singapore.

South Asia meanwhile posted a 19.6 percent rise in visitors, with 3,623 arrivals from markets including India, Sri Lanka and Bangladesh being recorded for the month on a year-on-year basis. Arrivals from Oceania markets like Australia and New Zealand were up 18.1 percent to 1,446 people.

According to the same findings, arrivals from Africa reached 524, an increase of 24.5 percent, while visitors from the Americas rose 19.9 percent to 2,146. Arrivals from the Middle East during August rose 3.4 percent to 2,712 people.

Occupancy rates

Despite the growth in arrivals, the total occupancy rate for resorts, hotels, guest houses and safari boats during the first eight months of the year was down 1.2 percentage points in total to 70.8 percent. On a year-on-year basis, total average occupancy for August 2012 fell one percentage point to 68 percent.

According to Tourism Ministry statistics, the average resort occupancy between January and August this year fell 2.3 percentage points to 77 percent compared to the same period in 2011. During August alone, average occupancy fell 0.8 percentage points to 74.9 percent.

At the country’s hotels, average occupancy for the first eight months of the year was down 8.8 percentage points to 30.3 percent. In August, average hotel occupancy was down 6.1 percentage points to 25.8 percent over the same time frame last year.

Guest house occupancy for the first eight months of 2012, rose 0.8 percentage points to 16.3 percent. The same level of growth was also recorded in terms of average guest house occupancy for August 2012, which rose 0.8 percentage points to 16.3 percent.

Safari vessel occupancy meanwhile increased 4.1 percentage points between January to August 2012, totalling an average of 28.4 percent. However, average occupancy during August had fallen two percentage points to 19.1 percent.

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Government urges CMAG to remove Maldives from agenda

The government has sent a statement to the Commonwealth Ministerial Action Group’s (CMAG) demanding its removal from the group’s agenda, ahead of its teleconference this Tuesday (August 11).

In the statement, dated September 7, the government argues that there remains “simply no justification for keeping the Maldives on the [CMAG] agenda”.

The CMAG had placed the Maldives on its formal agenda in February although President Dr Mohamed Waheed Hassan’s government has maintained that the group “lacked the mandate” to to so.

Waheed’s government also spent £75,000 (MVR 1.81 million) on advice from former UK Attorney General and member of the House of Lords, Baroness Patricia Scotland, in a bid to challenge what they deemed was the Commonwealth’s “biased” stance on the Maldives, and has continued to express disapproval at what it terms “interference” by the Commonwealth.

The government’s statement offers five reasons in support of its removal from the CMAG agenda.

Firstly, the government pointed out that the recently completed Commission of National Inquiry (CNI) had found no legal issues surrounding the transfer of power, adding that its international observers had hailed the report as “exemplary.”

The publication of the CNI was closely followed by an independent legal analysis which has raised serious doubts over the credibility of the CNI’s findings.

The teleconference statement added that former President Mohamed Nasheed had also welcomed the report, “though with some caveats”.

The most notable of the caveats mentioned by Nasheed was that the report left the country in a “comical” situation “where toppling the government by brute force is taken to be a reasonable course of action.”

Secondly, the government reasons that the CNI’s findings of police brutality are already being acted upon by the relevant independent institutions – the Police Integrity Commission (PIC), the Human Rights Commission (HRCM) and the Prosecutor General (PG).

The onus placed on these institutions since the release of the report has again raised doubts as to their ability to handle these politically sensitive investigations.

However, the fourth reason cited for the removal from CMAG’s agenda was the government’s willingness to expand cooperation with the Commonwealth in order to strengthen the institutional infrastructure.

This willingness to enhance relations with the Commonwealth appears at odds with the apparent enmity shown by senior figures towards the organisation since the CNI’s release.

Both Dunya Maumoon, State Minister for Foreign Affairs, and Dr Hassan Saeed, Special Advisor to the President, have publicly argued that the Maldives had been treated unfairly, suggesting that the country should leave the organisation should it not be removed from the CMAG agenda without delay.

“Should the Maldives continue to be kept on the CMAG agenda, I have to say that there are a lot of citizens and very senior members of the government who have many serious concerns regarding whether the Maldives will stay on as a member of the Commonwealth,” Dunya told the press last Thursday.

Dr Hassan launched a scathing attack in a comment piece for local newspaper Haveeru, in which he argued that the Maldives had received “third class justice” from the Commonwealth.

“It is my belief that the Commonwealth and its institutions have treated us very badly,” wrote Dr Hassan.

“I would now argue that if CMAG does not remove the Maldives from its agenda in its next teleconference on 11th of this month, we should end our relationship with the Commonwealth and look to other relationships that reflect modern realities of the world,” he said.

President’s Office Spokesman Abbas Adil Riza was reported in local media today as saying that he does not feel CMAG should intervene in any future challenges the country faces.

When discussing the current visit of Commonwealth Special Envoy Sir Donald McKinnon, Abbas said he felt this would be McKinnon’s last visit to the country.

The third reason listed by the government in its statement to CMAG argues that calm had been maintained “despite some serious efforts by the opposition to create unrest.”

Although there was widespread anticipation of unrest before the release of the CNI with Nasheed at one point calling for his supporters to “topple the government”, the demonstrations surrounding the report’s release were not accompanied by a notable increase in violence.

The presence of international news crews in anticipation of unrest did, however, did lead to greater coverage of the ensuing protests.

The statement also mentions the initiation of the ‘Leader’s Dialogue’ talks which it claims will focus discussion on practical issues such as legislation which will ensure elections next year can be held freely and fairly.

Finally, the government argues that the stigma of remaining on the CMAG agenda is negatively affecting foreign investment and tourism in the country.

“The Maldives, which is one of the smallest countries in the Commonwealth, is experiencing difficulties in finalising foreign investment projects, and in some cases, concessional loan financing, as well as a drop in tourist arrivals into the country as a result of being on the CMAG agenda,” read the statement.

Ministry of Tourism figures show that this year’s tourist arrivals had grown just 2.8 percent compared to the same period in 2011. Figures for 2011, however, showed growth of 17.6 percent compared with 2010’s arrivals.

President Waheed travelled to China last week where he finalised agreements for a US$500 million loan (MVR7.7billion).

“It is therefore time that the Maldives is removed from the formal agenda of the CMAG and allow the government to focus on what it is expected to do; cultivating and nurturing democracy in the Maldivian society,” concludes the statement.

“After all, in democracies, governments are answerable to the people,” it finishes.

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Battle for the brand: Are the “hard days” over for Maldives tourism?

As the Maldives looks to boost tourism arrivals following negative international coverage of the country’s political unrest this year, one leading branding consultant has said destinations looking to overcome bad headlines rarely find quick fix solutions to improve their image.

Following the controversial transfer of power that brought President Dr Mohamed Waheed Hassan to office on February 7, negative headlines regarding the political situation and violent clashes between civilians and security forces were deemed as having an adverse affect on tourism in the Maldives.

However, tourism authorities this week talked optimistically of the prospects for growth in the industry following several months of uncertainty that it said impacted growth – predicting a resurgence in international visitors towards 2013.

Earlier this week, Deputy Minister for Tourism, Arts and Culture Mohamed Maleeh Jamal claimed “the hard days” were over for the Maldives tourism industry, after a Commonwealth-backed report last week rejected accusations that the present government came to power illegally.

Former President Mohamed Nasheed and the opposition Maldivian Democratic Party (MDP) have continued to allege that they were removed from office in a “coup detat”, claiming the Commission of National Inquiry (CNI) failed to include key witness statements and evidence in its findings.

Amidst the uncertainty since February’s power transfer, tourism authorities in the country have pursued a strategy of collaboration with the country’s private sector to try and strengthen arrival numbers to the country. This focus included signing a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services.

In April, the Maldives Marketing and Public Relations Corporation (MMPRC) confirmed the appointment of New-York based public relations agency Ruder Finn to “oversee the overall media coordination and achievement of PR related solution for destination Maldives.”

However Peter Mathews, founder and chief Executive Officer of UK-based branding consultancy Nucleus, claimed a quick fix solution to changing perceptions of a destination on the back of negative international headlines was unlikely.

Mathews took the examples of Sri Lanka and Bahrain as countries that had experienced difficulties attracting tourists on the back of unfavourable headlines relating to reports of political uncertainty or human rights abuses.

“Both of these destinations have had issues with branding.  Branding alone is not an instant solution for a country’s reputation,” he told Minivan News. “If you are not transparent about issues, they will still be there for tourists to see once you scratch below the surface of a destination.”

With the growing prominence of social media and video sharing services like Twitter, Facebook and YouTube, Mathews claimed it was becoming increasingly difficult to move on from negative headlines without addressing the key social or political issues.

“We now live in a digital world of instant updates and information, there is nowhere to hide,” he said.

“Ultimately, the best way to re-brand in the medium to long-term is for a destination to try and ensure transparency and avoiding contradictions.”

According to Mathews, a single negative headline about a destination required number of positive stories in order for it to overcome any detrimental impacts to a country’s reputation.

“It can take a while these days for unfavourable headlines to slip down the Google rankings. Of course, some have turned to using the ‘dark arts’ but this doesn’t always work. Particularly in the luxury market, where consumers tend to be much better informed when it comes to travel,” he said.

Talking about the potential challenges for the Maldives regarding boosting confidence in the tourism industry, Mathews said that authorities would need to satisfy resort owners and the international brands operating in the country, as well as the wider population that positive changes were being enacted.

“Suddenly, word of mouth can become very important. This makes it difficult to paper over the cracks,” he said.

Mathews said the Maldives’ relatively unique resort industry – a hundred-or-so resort properties exclusively built on individual private islands – had been afforded protection from any political unrest that centered mostly on its inhabited islands.

“The Maldives resort experience is obviously very different to the Maldives experienced in the capital of Male’, and this does help insulate the industry from uncertainty,” he said. “Yet economically, I would have thought there was interest to try and bring tourism income directly to the capital and other [inhabited] local islands.”

However, the negative impacts on Maldives tourism witnessed following February’s political turmoil appears not to have been repeated despite fears of continued unrest.

The UK Foreign and Commonwealth Office (FCO) updated a travel advisory for the Maldives on August 24 to account for potential violent clashes linked to the release of findings by the Commission of National Inquiry (CNI).

“Very positive”

Amidst talks of potential boycotts of the Maldives travel industry, a stance at one point this year backed by former President Mohamed Nasheed, Deputy Tourism Minister Maleeh contended that arrival figures immediately after February had been sluggish. However, even before the release of the CNI’s findings, which were welcomed by the Commonwealth last week, Maleeh contended that arrival figures had shown “very positive” during June and July.

The deputy minister therefore moved this week to play down fears over the country experiencing continued difficulties in attracting visitors.

“The hard days are over following the findings of the [CNI] report. Over the last week, unlike February, we have seen no major disturbances in the country and this sends a positive message out about the destination,” he said. “During the next four months we are expecting a positive outcome for the industry despite the economic crisis.”

Maleeh added that in light of political instability and “turbulence” experienced in the country since the transfer of power, internal stability was a huge part of attracting and maintaining visitor numbers

“What we do is try to provide the industry and media with information that is true and accurate,” he said.

In March, the Maldives Marketing and Public Relations Corporation (MMPRC) announced that, as well as returning to its ‘sunny side of life’ branding, the industry had set a target during 2012 to attract one million visitors to the country by year’s end.

Maleeh claimed that the industry remained on track to meet these goals, despite certain key challenges such as the impact of ongoing financial uncertainty on some core European tourism markets like the UK and Italy.

During the last 120 days of 2012, Maleeh said that a major tourism marketing push was being planned to meet these goals.  This focus was said to be focused on over 12 major emerging and established markets through Europe and Asia, including measures such as six travel road shows and an international media push.

“We will be bringing an estimated 40 journalists from around the world for press familiarisation trips to show them the ‘sunny side of life’,” he said.

Maleeh claimed that the MMPRC would also be collaborating with over 300 industry stakeholders including resorts groups, liveaboard boat operators and travel agencies to attend a number of major travel events and fairs around the world including London, Rome, Tokyo and Osaka. Key national markets in China and Eastern Europe would also be included.

Maleeh said authorities considered using special roadshow events in order to ensure a short-term boost in tourist interest.

Back in April, the MMPRC teamed up with local airline group Mega Maldives to carry out a travel road-show to promote the Maldives through what it described as a whistle-stop tour of five Chinese cities in one week.

According to Maleeh, the tours allowed the private sector to “close deals” during a period of “sluggish” growth in February and March.

“The roadshows have shown very positive results and we are looking to have one in Eastern Europe to try and boost the market in countries like Poland and the Czech Republic.

The MMPRC has also announced a commitment to take part in special market focused events like the Dive Resort Travel (DRT) Expo in China and other luxury travel-focused shows.

“Sunny side of life”

As part of the organisation’s marketing push, Maleeh added that under ‘sunny side of life’ brand, authorities would make use of a number of what he called lesser known taglines to target specific areas including ‘the spiritual side of life’ and ‘the colourful side of life’ – a tag used to play up the country as a dive destination.

“These messages are quite useful in areas like the Middle East, which are very popular with honeymooners,” he said. “Right now we are hoping that 2012 is shaping up to be a very promising year for tourism in the Maldives.”

Beyond addressing the Maldives’ image, several industry insiders have also raised concerns of late about the financial realities facing both local and multinational companies working in the country.

Just last month, several resort managers voiced concerns over revenue raising measures proposed by the Finance Ministry, which they claimed would have a detrimental financial impact on the tourism industry and provide little improvement in service or support in return.

The proposed measures were part of an ‘austerity’ package sent to parliament’s Finance Committee during August in a bid to address the country’s crippled financial condition.

However, since the publication of the CNI report, President Waheed told Reuters this month that China would grant the Maldives US$500 million (MVR7.7billion) in loans during his state visit to the country.

The loans, equal to nearly one quarter of the Maldives’ GDP, would include $150 million (MVR2.3billion) for housing and infrastructure, with another $350million (MVR5.4billion) from the Export-Import Bank of China, reported Reuters.

Minister of Finance and Trasury Abdulla Jihad told Minivan News today that despite the possible provision of finance from China, the proposed revenue raising plans such as
raising Tourism Goods and Services Tax (TGST) to 15 percent were still being discussed to help balance finances.

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“The good news is that the Maldives is not about to disappear”: President Waheed

“First of all, I want give you a bit of good news. The good news is that the Maldives is not about to disappear,” President Dr Mohamed Waheed Hassan has told a group of Sri Lankan businessmen in Colombo yesterday, according to media reports.

Speaking during his official state visit to the Maldives’ closest neighbour, Waheed told an assembled group of business heads at the Hilton Colombo hotel that the country could mitigate the effects of climate change and global warming.

Waheed made the comments in an attempt to assure his audience in Colombo yesterday that steps were being taken to stabilise the political climate in the country, as well to retain investor confidence.

The President said that large sections of the state budget were currently being spent on combating coastal erosion, providing clean water for the islands and developing renewable energy to minimize overall expenditure.

Since assuming the presidency, Waheed has pledged to work towards the previous administration’s carbon neutrality strategy, while also announcing intentions to make the Maldives the world’s largest bio-reserve.

There has also been discussion of a green energy fund to raise US$100 million for renewable energy projects through voluntary tourist contributions.

The country’s energy sector had been headed for a dramatic overhaul this year before the political instability surrounding February’s transfer of presidential was claimed to have deterred potential investors in such a project.

The Scaling-Up Renewable Energy Programme (SREP) promised to attract up to $3billion in risk-mitigated renewable energy investment and reduce the Maldives’ dependency on imported oil.

The environmental obstacles besetting the low-lying archipelago had been championed by former President Mohamed Nasheed, who garnered international media attention with his underwater cabinet meetings and a promise to make the country carbon neutral by the year 2020.

Nasheed’s media campaign was covered in the documentary film, “The Island President”, which highlighted his negotiations at the 2009 Copenhagen Climate Summit.

Before assuming office, Nasheed told international media that he had discussed the idea of purchasing land in Sri Lanka, amongst other nations, “as an insurance policy for the worst possible outcome.”

Investor Confidence

Waheed assured his audience in Colombo yesterday that the government was also focused on bolstering investor confidence.

Threats to renationalise Ibrahim Nasir International Airport (INIA) – currently being developed by Indian company GMR – have recently brought calls from within the national-unity government for greater consideration of the longer-term impact on foreign investment.

President Waheed is also reported as having told Sri Lankan media that both the economy and the tourism industry, which indirectly contributes around 70percent of GDP, were growing.

A President’s Office statement, however, has reported that Waheed told the group gathered at the Hilton that there had been a decline in the tourism industry recently.

The Tourism Ministry’s most recent figures show that, compared with the same point in 2011, tourist arrivals were up by 2.8 percent, whilst occupancy rates had dropped 1.2 percent.

Figures published by the Maldives Monetary Authority (MMA) show that the economy was expected to grow by 5.5percent this year, a slight slow down on the previous year.

Tourism Minister Ahmed Adheeb, who is accompanying President Waheed to Sri Lanka, was unavailable for comment when contacted today.

At present, a key economic concern to the government is the current budget deficit, anticipated to reach MVR9.1billion (US$590million) – over 28 percent of nominal GDP.

Haveeru reported that Waheed has informed the Sri Lankan press of austerity measures which were delivered to the Majlis by the Finance Ministry earlier this month.

The Sri Lanka Daily News meanwhile reported that he was in the process of finalising agreements which would strengthen bilateral ties in trade and investment as well as the legal and the educational sectors.

Minister for Economic Development Ahmed Mohamed and President’s Office Spokesperson Abbas Adil Riza were not responding to calls at the time of press.

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STO puts resort development plans on hold

The State Trading Organisation (STO) has put plans to purchase a resort property on hold, citing “current economic conditions” as a barrier to any potential deal, local media has reported.

Back in June, STO announced its intentions to venture into the Maldives tourism industry, with the company targeting the purchase of “at least three resorts and one hotel” as part of attempts to increase its access to foreign currency.

However, the Sun Online news service yesterday quoted STO Managing Director Shahid Ali in announcing a temporary halt to the company’s resort purchase ambitions.

According to the report, the company remains committed to the ongoing construction of a 5-star hotel on  Hulhumale’ under a contract with USA-based multinational travel company, Carlson Group.

The STO is the Maldives’ state-owned importer, and is the primary supplier of general goods, fuel and pharmaceuticals to the Maldives. It also supplies aviation fuel to Ibrahim Nasir International Airport (INIA).

STO had formerly operated a resort property in the country, before selling it to a private group in 2007. Shahid had told Sun Online this week that the group had been focused on developing the island of Muthaafushi.

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Resorts concerned about “unhelpful” call for tourism boycott

Several resort managers have warned that former President Mohamed Nasheed’s call in the Financial Times (FT) for a boycott on tourism risked aggravating an already unstable economic situation in the country, given the country’s near-total dependence on tourism.

Speaking to the FT, Nasheed urged potential visitors to make other plans and cancel existing bookings.

“I’d say to anyone who has booked a holiday to the Maldives: cancel it. And to anyone who is thinking of booking one: please don’t bankroll an illegitimate government,” Nasheed told the publication.

Minivan News attempted to clarify the extent of Nasheed’s proposed boycott at a recent Maldivian Democratic Party (MDP) rally, however he was not commenting further on the subject. The Party’s Spokesperson, Hamid Abdul Ghafoor, said the party was keen to encourage “ethical tourism”.

Potential impact

“The impact [of a boycott] would depend on how many people heed the call,” said one resort manager.

“The call for a boycott as such will perhaps not have too much of an impact for our clients. They will ask questions, but they will not let it stop them from booking, if they hear about it all. The February 7 events also were not registered as potentially dangerous by too many of them,” the manager said.

“Of course if, say, [airport developer] GMR staff joined a boycott movement, [seaplane operator] TMA staff start striking, maybe even resort staff join in activities and guests are actually negatively confronted with some of these issues, bad news will spread rather fast and the impact might be drastic,” he warned.

“It feels to me as something which might rather aggravate the situation in a country, which is already struggling with its economy, credibility and security, and where so many of its people are fully dependent on tourism.”

Another resort manager warned that while such a statement would negatively affect tourism, “more so the local Maldivian with reduced hospitality workers service charges, local shops, tour operators and the local suppliers.”

“One would hope that former President Nasheed would take an interdependent viewpoint rather than reverting to this unhelpful strategy,” the manager suggested.

“This will hurt the locals more than the current government. Whilst I understand that the MDP would like new elections, I believe this is not the way forward.”

A third manager warned that the boycott risked undermining support for Nasheed within the tourism industry, which employs many MDP members, and handed the ruling coalition a reason to blame the former President for the country’s dire economic situation.

One resort owner, quoted in the FT’s article, said he supported the boycott “as the industry was partly responsible for the overthrow of Mr Nasheed.”

“Resort owners have financed and backed the new regime, and we can’t carry on as if its business as usual. A boycott will hurt me personally a lot in the short term, but it’s necessary in the long term,” said Ali Shiyam, Director of AAA resorts.

Resorts in the Maldives have previously expressed concern about the potential increase in T-GST to 12 percent, among several measures the International Monetary Fund (IMF) has said are urgently needed to offset the Maldives’ spiraling budget deficit. Due to ongoing contracts with overseas tour operators, any sudden increases in TGST would have to be absorbed by the resorts, several stated.

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Business as usual at Maldives guest-houses after authorities issue “cautionary circular”

The government has insisted city hotels and guest-houses established on the Maldives’ inhabited islands remain open today, after a local media report suggested authorities had revoked the right of local councils to operate tourist properties on their land.

Sun Online reported yesterday that the opposition Maldivian Democratic Party (MDP) had called for an emergency debate in the people’s Majlis against an “order” by the Ministry of Tourism, Arts and Culture to cease the “operation of guest houses and hotels”.

MDP Chairperson and MP Reeko Moosa Manik was reported to have criticised the legality of an order issued on June 17, claiming the motion was a means to protect the interests of certain resort owners at the expense of developing independent travel.  Manik was unable to respond to Minivan News at the time of press.

Responding today to the Sun Online report, tourism authorities said there had appeared to be “confusion” about the content of a circular that as released by the ministry on June 17.

While not having seen the circular, former Tourism Minister Dr Mariyam Zulfa said she did have concerns about the government’s attitude to guest-house development, alleging that authorities sought to reverse previous state commitments to decentralise powers to local councils. She claimed these powers allowed councils – in collaboration with the government – to have more of a say in localised tourist developments.

“Confusion”

Deputy Tourism Minister Mohamed Maleeh Jamal claimed the ministry has issued a circular to make local councils aware that the allocation of public land for tourism development was to be approved by the ministry and not themselves.

“This circular from the ministry never mentioned guest houses or city hotels directly. Some local councils are allocating land for tourism developments like guest-houses,” he said.

According to Maleeh, the circular was devised as a “cautionary” response to ensure local councils only set aside land for hotels and guests-houses under license from the Tourism Ministry.  Maleeh contended this provision would ensure industry planning and safety standards were met.

“There appears to have been some confusion about the motion. Right now, any person can develop guest houses or hotels on private land,” he said. “To do this, they are required to go through the Tourism Ministry and follow regulations regarding safety and the number of rooms they are operating.  This is simply a circular to remind local councils that public land can’t be assigned by them for guest-house development.”

Maleeh claimed that all land being set aside for tourism development was required to go through a bidding process before gaining government approval.

Guest-house challenges

Just last week, Minivan News’ spin-off travel review site, Dhonisaurus, reported on the challenges facing the development of independent travel in the Maldives through industries like guest-houses.

Tourism Minister Ahmed Adheeb said at the time that the government was presently analysing the contribution to the economy of all tourist properties – including resorts, safari boats and guest-houses. Once this analysis was complete, the Tourism Ministry said it would then unveil how each sector will be developed though the country’s fourth tourism master-plan.

Speaking today, Deputy Minister Maleeh stressed that the country’s resort industry presently accounted for about 80 per cents of the total bed capacity available to tourists.

While guest-houses were estimated to account for 2.5 percent of tourism bed capacity, Maleeh claimed that the industry was “slowly picking up” – something that would be considered within the news tourism “master-plan”.

“Properties like guest-houses allow tourists to experience local culture here, there will definitely be a role for them,” he said. “However, the government wants to make sure these are successful ventures, but there may be issues to overcome for such properties. This is why the license to operate them must come from the tourism industry.”

“Running as normal”

One local operator of guest houses, who wished to remain unidentified, said that there has so far been no impacts on their business resulting from the tourism ministry circular.  The operator told Minivan News that an official tourism ministry inspection had been carried out last Wednesday (June 20) on a soon to be opened guest-house property, and there had been no indication of a change to their operations.

“As far as I’m aware, business is running as normal,” the spokesperson said.

Dr Mariyam Zulfa, who served as Tourism Minister under the administration of former President Mohamed Nasheed until February’s controversial transfer of power, has however raised concerns that the circular could place a barrier on future hotel and guest-house developments on inhabited islands.

Zulfa stressed that while she had not seen the circular, from what she could gather, the circular highlighted a government policy now seemingly against granting permission for new guest-house properties.

“I take it to mean that the circular will place a bar on further local tourism development by usurping the power of local councils,” she said.

“During my time, we worked to try and empower local councils through a land use plan to take more responsibility for local tourism development. They still had to come back to the Tourism Ministry and obtain an opening permit for any property, but we wanted to give councils power to decide how to move forward.”

Land use plan

With all land allocation related to tourism development requiring presidential approval, Zulfa said that the previous government held a policy where every island in the country was required to have a land use plan approved by the Housing Ministry.

Zulfa claimed that on islands where land had been earmarked for tourism developments under this land use plan, any person with a business proposal for a guest-house or hotel could then go to their council for approval.

“The idea was that local government would have the authority to negotiate with local developers for the best deal for their communities,” she added. “The ministry would also be able to provide assistance if needed.”

Zulfa added that she found it “strange” that opponents of the former government had alleged the administration had been doing “whatever it pleased” in terms of distributing land.

“If we look as the islands set aside for resort development at the time, there was a US$600,000 charge per square hectare of land – an amount that was very close to previous investment regulations.

Zulfa added that the “significant” sum was devised after a tender process and consultation with the industry to ensure committed investors were being found to help fund developments.

“It seems strange to me that people are making it seem like we were giving away islands, when we had undertaken immense work and spent significant time in outlining these plans,” she added.

Earlier this month, the government refuted claims it had considered halting the lease of 60 islands awarded for resort development by the Nasheed administration.

Critics alleged that the CSR programme was against the law as the islands were awarded in the absence of an open bidding system, and had favoured MDP members.

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Tourism Ministry lauds global PR efforts as opposition proposes promo spending cuts

Deputy Tourism Minister Mohamed Maleeh Jamal has claimed marketing plans designed to boost consumer confidence in the Maldives have had a positive impact over the last three months, as parliament prepares to debate a proposal on cutting state promotional spending.

Maleeh said that the nature of global media coverage about the Maldives had been “much better” over the last three months, following a decision to hire several marketing firms to promote the country following February’s controversial  transfer of power.

Among these firms is the high-profile multinational PR group Ruder Finn, which has been employed to “instil confidence in the tourism industry of the Maldives [and] gain understanding and public acknowledgement of the Maldives in the international community”.

Ruder Finn, which was appointed back in April under a three month contract reported in some media to amount to US$150,000 a month, has come under some criticism from at least one opposition MP, who has forwarded a proposal to parliament on rejecting further state spending on the contract.

MP Ibrahim Rasheed hit out at the cost of the Ruder Finn contract as being unsustainable considering the current economic situation in the Maldives.

Speaking to Minivan News today, Deputy Tourism Minister Maleeh said he was aware of the parliamentary resolution forwarded by the MDP MP for Maafannu-South, stressing concern at the potential impact it could have on the national economy.

“I’ve heard of the motion. Certainly from time to time MPs in the People’s Majlis will submit not-so-important motions,” he said.

The country has experienced ongoing political tensions amidst allegations by the Maldivian Democratic Party (MDP) that the elected government of former President Mohamed Nasheed was ousted back in February under a “coup d’etat” supported by opposition politicians, mutinous sections of the police and military and certain business leaders.

Within the current partisan atmosphere, Maleeh called on politicians, regardless of their politics, to avoid actions that would sabotage the tourism industry and the wider national economy.

“I am concerned that a major source of revenue such as tourism is being put at risk. I condemn such acts,” he said, referring to MP Rasheed’s motion to cancel state funding to hire Ruder Finn. “Without tourism the economy would be in a grave state. It is the biggest contributor to our national economy for the last 40 years. Politicians should leave the economy aside.”

According to Maleeh, during the last three years, the former government “slashed” the budget set aside for the promotion of tourism.

He added, that with President Dr Mohamed Waheed Hassan now in office, the new government was doing “all it could”, along with working in collaboration with the private sector, to boost promotional efforts and undo the impacts of international headlines concerning February’s transfer of power.

However, Maleeh stressed that Ruder Finn was just one of a number of promotional contracts that had been signed by the government to try and improve damage to consumer confidence in the country’s tourism industry.

“We have several international contracts with agencies that are carrying out specific focuses for us,” he said.

Earlier this month, the tourism industry announced it had signed a contract to advertise the Maldives under its recently reinstated “Sunny Side of Life” branding on the BBC weather service both through its online and World Service.

When contacted by Minivan News today about the present nature of its contract with the Maldives government, as well as the company’s aims for its work in the country, Ruder Finn’s Ethics Officer Emmanuel Tchividjian said he had “no comment”.

The contract, said to cost US$150,000 a month for the three month-long campaign, was the result of a collaboration with the private sector that tourism authorities have said they hope to continue over the next few months as they secure more funding.

In addressing the impact of the industry’s recent promotional spending Maleeh added that the “results were hard to measure”, but added that there had been a positive impact during the last financial quarter on media coverage of the country.

“Marketing is a long-term strategy. It therefore can take time to get clear results,” he said. “However, with marketing contracts such as these, the main agenda is to protect tourism.”

Amidst “quite aggressive” marketing strategies being employed by neighbouring destinations such as Sri Lanka, Maleeh stressed that improved budgets would allow the country to compete more evenly. To this end, he expressed commitment to secure further private sector support such as the country’s resort industry to aid future marketing efforts.

With the Ruder Finn contract expected to expire next month, Maleeh stressed that no decision had yet been taken on whether to continue using the group in the future.

“That decision would depend of a review of the agreement when the contract was over,” he said, stressing that any decision would be based on the perceived impacts of its current work on the global perceptions of the Maldives.

MP Rasheed today told Minivan News that he had sought to forward a proposal to parliament that calls for a cessation of state funds to be spent on the Ruder Finn contract over concerns that money was being diverted from other areas such as public health.

With a hearing now scheduled for next Monday (July 2), Ibrahim Rasheed said he was confident that the proposal would be able to garner sufficient support in the Majlis chamber.

“We don’t have a budget for sewerage programmes or to fund healthcare,” he said. It is the government who are telling us the don’t have the money for these things.

When questioned by Minivan News as to whether the potential economic benefits of PR efforts from a group like Ruder Finn would not provide a greater economic boost than the amount being paid, Rasheed remained sceptical.

“My argument remains that there are not enough funds for this. [The government] should not be spending that amount on their image,” he argued.

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Maldives Tourism Board opens offices in Beijing in Shanghai

TTG Asia travel magazine has reported the opening of Maldives Tourism Promotion Board offices in Beijing and Shanghai.

Chen Xueyu, secretary-general of the Shanghai Tourism Trade Association, told TTG that the Maldives was one of the most popular tourist destinations among Shanghai’s population.

Zou Qingling of Shanghai Spring International Travel Service, said that the Maldives was the “first-choice destination for (Chinese) honeymooners”, anticipating that numbers would continue to grow at 20-30 percent per year.

The Ministry of Tourism took part in a travel roadshow in conjunction with Mega Maldives airlines which flys tourist to the Maldives from 6 Chinese destinations. The tour aimed to publicise the industry’s aims to attract a record 1 million visitors this year as well as to encourage Chinese investment in the Maldives.

Last year, the number of visitors from China surpassed those from Britain, reaching 198,000. Statistics from the ministry show that Chinese tourist arrivals are up 12.6 percent this year compared with the same point last year.

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