Tag: Tourism

Cabinet leases two uninhabited islands for resort development

The Cabinet has decided to lease two uninhabited islands for resort development to the party currently operating Kolhumadulu Thimarafushi Domestic Airport.

During today’s discussion, the Cabinet noted that leasing uninhabited islands for resort development would help recover the cost of developing the airport last year.

The government last year reclaimed 31 hectares of land for airport construction.

Cabinet members also concluded that opening new resorts is also expected to promote industrial growth and increase job opportunities for locals.

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Sri Lankan tourism model could benefit local industry and exposure

While Maldives niche market continues to draw elite dollars, Sri Lanka’s tourism industry earned more money in 2011 than its island neighbor, statistics suggest. However, the Maldives’ move into the mid-market sector could expand horizons for budget travelers and Maldivians alike.

On January 6, Reuters reported that Sri Lanka’s tourist arrivals hit a record high in 2011 with a 30.8 percent jump to 855, 975; in 2010, the country experienced a 64.8 percent jump. Sri Lanka’s state revenue from tourism also rose by 46.7 percent to US$735.7 million in the first 11 months of last year.

Meanwhile, the Maldives has seen its own tourist arrivals jump to a record high of 1 million in 2011 – triple the country’s population.

The elite level of a Maldives vacation would suggest an elite revenue; use of the airport alone costs the 1 millions tourists approximately US$18 apiece, bringing US$21 million to the State last year. Yet in spite of the higher arrival rate, Maldives Inland Revenue Authority (MIRA) statistics estimate state revenue from tourism in 2011 at US$374 million–half its neighbor’s intake.

MIRA’s statistics are subject to two wild cards–the newly implemented Goods and Services Tax (GST) which left many items undeclared, and the possibility that some yachts aren’t declaring their total profits. Corruption is also a concern across the region, in which many countries have developing government infrastructure. “In the old days, there was no tax or GST,” said Managing Director of Maldives Marketing and PR Corporation (MMPRC) Simon Hawkins. “But now we have an accounts footprint from the GST, which will be available by 2013, so we will have a better idea of how money is being spent and where it’s going,” he added.

In addition, Sri Lankan nationals have more options for travel within their own country than the average Maldivian does among the islands. Even for Maldivians who could afford a resort trip, the un-Islamic stigma of the resorts is socially prohibitive and limits domestic tourism.

While Finance Ministry officials have been unable to clarify the discrepancy, Sri Lankan officials have pointed to the grassroots nature of their own tourism industry.

Listing the variety of vacations available in Sri Lanka, one official noted that the tourism industry is integrated into the local culture, and money paid to guest houses, restaurants and cultural and entertainment services goes directly into the economy.

By contrast, a Maldivian vacation typically happens on an island isolated from local culture and economy, feeding chunks of revenue to the expatriate workers and foreign investors who dominate resort operations.

While both countries compliment each other, Maldives is hard to beat, said Hawkins.

“Most people who go to Sri Lanka are backpackers. The beaches are okay, but people go for the cultural experience,” he said. “The most common package is the honeymooners who want to spend a week in Sri Lanka and a week in the Maldives. The general consensus is its more expensive in the Maldives but its worth it.”

According to State Minister of Tourism Thoyyib Waheed, the Maldives elite niche is a product of high-stakes bidding.

“In the last five years the government has given away many islands to the highest bidder. Because of that process, the winning bidder cannot develop a resort for the mid-market. To earn a return on the investment, the bidder has to aim for the high-end market,” he said.

Pointing to the dwindling arrivals from Europe, Waheed explained that during the global recession tourism operators have more Europeans requesting budget vacations.

“They’re looking for those rooms, especially the UK market, but we don’t have them. We need to provide for that charter market.”

While Sri Lanka may attract more budget backpackers, statistics suggest it is also pulling more of the Maldives’ main markets – flush Europeans and curious, recession-proof Asians.

In 2011, Western European arrivals jumped 22.7 percent, accounting for over ⅓ of tourist arrivals that year. South Asian arrivals jumped 35.3 percent, rivaling their Western European counterparts, government data suggests.

As a result, “the government is targeting annual revenue of $2.75 billion by 2016 from 2.5 million expected visitors attracted by Sri Lanka’s beaches, hills and religious and historic sites, while aiming for $3 billion in foreign direct investment,” Reuters reports.

Looking ahead to 2012, Sri Lanka is expecting a revenue in excess of US$1 billion – a 20 percent increase from 2011.

Deeper in the Indian Ocean, the Maldives appears to be edging into the mid-market sector.

According to State Minister Waheed, land lease rates have dropped from previous levels to encourage more mid-market tourism projects–and benefit the local economy. “The President’s view is, why can’t tourists come and stay in an empty room of a local home? There are so many empty rooms on the islands, everyone shouldn’t come and stay in a resort. In Germany tourists can stay in bed & breakfasts. In Maldives, it doesn’t have to be five-star.”

According to MMPRC, 88 percent of Maldives hotels are four star and above, giving it the highest propensity of hotels in terms of the high-end market anywhere in world. It also enjoys the highest occupancy rate (75 percent) world-wide.

While Maldives will maintain its one island, one resort image, it is aiming for more variety. Two projects in Laamu Atoll Gan are actively moving in that direction.

J Hotels and Resorts is expected to bring two 300-bed hotels and 69 guest houses to the 25 hectare area along with recreation activities, water sports and restaurants. Tourism Minister Dr Maryam Zulfa has said the Ministry is keen to see the Asseyri Project succeed.

“Right now we can’t cater to the mid-market tourists who want to have options when they make a trip to or within the Maldives,” Zulfa explained. “This will give them that opportunity. And the basis of the project will be the natural beauty – the beach, lagoon and reef are absolutely fantastic.”

She added that commercial components of the area would be rented out to different parties, thus involving more local entrepreneurs in the Maldives tourism-based economy.

In February, Reveries Boutique will become the first resort to open on a local island. Offering rooms available for under US$200 and the option of strolling into town for fish curry or mashuni, management aims to “explore the idea that parts of the Maldives are open for people of all types.”

Locals stand to gain in both income and experience.

Allowing guest houses in local islands would bring more jobs and new businesses to those areas while raising the rate of interaction between locals and tourists. Waheed added that the government is taking steps to help tourists navigate the country, rather than remain stationary on resort islands.

The same rule applies to Maldivians.

While Maldivians don’t normally go for vacation in the Maldives, they do spend high amounts abroad, “although vacations are often combined with medical treatments”, Waheed pointed out. High domestic costs also make international travel an attractive alternative–a return flight to Addu can cost more than the airfare to Colombo and back.

Although inter-island transport has improved in recent years, “locals don’t really know where to go or where to stay,” said Waheed. “The steps we are taking now will give locals more opportunities to travel around the Maldives.”

In August 2011, Sri Lanka’s “The Sunday Times” advised the nation to follow the Maldives’ lead.

“Resorts in the Maldives charge rates from US$200-300 upwards to over $1000 per night, and the authorities are now looking to attract the mid-market clientele which is also Sri Lanka’s market – though the two markets have different attractions”, read the article.

While Sri Lanka’s product is less luxe its method appears to bring more to the government, and theoretically the people working in the tourism industry. Moving into the mid-market sector could open opportunities for Maldivians seeking to gain a slice of the nation’s highest-earning industry, as well as offer them more exposure to their own country.

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Supreme Court backs down from issuing ruling on legality of selling pork and alcohol

The Supreme Court has rejected the government’s request for a consultative opinion over whether the Maldives can import pork and alcohol without violating the nation’s Shariah-based constitution.

Pork and alcohol are prohibited items under Shariah law.

The judges 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.

The government last week requested a consultative opinion from the Supreme Court on the matter to level a heated debate over the compatibility of resort tourism and Maldives’ national religion Islam, prompted by protests on December 23, 2011 in defense of Islam.

Responding to demands made of the government by the protesting coalition of religious NGOs and opposition parties, the government issued a circular closing spas in all resorts and announced it was considering a ban on pork and alcohol, in a move to align government policies with Islamic standards.

While the trade of alcohol is not conducted by the government, the government receives a significant profit of the trade from the Goods and Services Tax (GST).

In particular, opposition Jumhoory Party (JP) Leader and MP ‘Burma’ Gasim Ibrahim owns Villa Hotels resort chain and is allegedly one of the biggest beneficiaries of the alcohol trade.

A tolerant society with a dependent economy

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.

Speaking to Minivan News last week, Attorney General (AG) Abdulla Muiz believed that although the regulations were clear, legal clarification would mitigate concerns. He suggested that the recent debate has had more to do with internal politics than the oft-cited public preference.

“We are quite a tolerant society, although there a few elements which walk a hard line,” he observed. “I don’t think there is a public concern over the sale of alcohol and pork in resorts.”

The AG pointed out that the majority of the nation’s citizens are primarily interested in the quality of their daily life. He added that the population of 350,000 is annually trumped by the over 700,000 tourists would come to- and invest in – the Maldives.

“If there is a decision prohibiting the sale of alcohol in the tourism sector, it will have a great impact on the economy. The 2012 State Budget of Rf14 billion [US$946.8 million] is very much based on the estimated revenue from the tourism sector. And the government has obligations to investors–it has leased 100 resorts and awarded 5o to 60 islands for development. I hope the Supreme Court will take the economy into account,” he said prior to the Court’s decision.

Muiz said a court ruling would assure investors that the current system is valid.

A problematic profile

Two months ago, protestors demanded that UN Human Rights Chief Navi Pillay be “slain” for her comment against flogging as a punishment for extra-marital sex. One month ago, the coalition formed by religious groups and opposition parties for the “defend Islam” protest called for stricter regulations in keeping with Shariah law, notably stricter regulations on the sale of pork and alcohol and the closure of massage parlors “and such places where prostitution is practiced.”

International media subsequently reported the story with varying degrees of accuracy, presenting a Maldives starkly different from widely-marketed white sand and turquoise waters.

Noting that the tourism sector had suffered many cancellations in past weeks, MATI Secretary General Sim Ibrahim Mohamed previously pointed out that “people get jittery when you talk about fundamentalism, radicalism, extremism–since 9/11 these have been very sensitive words.”

Speaking to Minivan News last week, religious conservative Adhaalath Party chief spokesperson Sheik Mohamed Shaheem Ali Saeed said, “Maldivians are very nice people, you don’t see any country like the Maldives in the Islamic world, so why would we want to damage these people? These are Muslim people and they like moderate views.”

Calling tourism “the backbone of our national economy”, Shaheem said he was “100 percent sure there is no prostitution in the tourism industry here. It is very professional, it is the most famous tourism industry in the world and is accepted by the international community. Why would we want to attack ourselves?”

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Maldives “too expensive” say tourists

With most of the tourists ranking Maldives as an expensive holiday destination in a 2011 survey, the industry is reminded of the longstanding need to explore means to change that perception, as it faces new challenges in sustaining the growing China market while European arrivals drop.

The “Maldives Visitor Survey 2011” compiled by the private consulting firm Commerce, Development and Environment (CDE) in collaboration with Tourism Ministry, depicts the tourist’s perspective on industry related products and services, reason for visiting and expenditure.

Nearly 3000 tourists who arrived in Maldives in April 2011 were given questionnaires, which were collected for analysis before their departure.

Too expensive

According to the report released today, 46 percent of the tourists believed accommodation is too expensive despite the high rankings for services at the place of stay.

Soft drinks, alcohol were also rated expensive by 42 percent, while food, water and souvenirs received a similar ranking from 41 percent of tourists polled.

Transport by sea and air, including sports activities, meanwhile made it to the top three on the “value for money” category.

The report indicates that 53 percent of the tourists spent a minimum of US$1000 during their stay in Maldives, while the expenditure trends show an increase.

However, speaking at the launching ceremony, tourism tycoon “Champa” Hussain Afeef demanded more accurate figures on expenditure, with comparisons to rival small island tourism destinations.

He also contended that the Maldives is “not an expensive country”, and that this was a mere “perception”.

“We have very top end hotels to come to” he said, which offers high quality products targeted to the tourists arriving from the traditional European market.

He insisted that resorts still offer beds at US$250 rate and prices have not increased since the commencement of Tourism Goods and Services Tax (TGST).

Tourism Minister Mariyam Zulfa agreed with Afeef.

“The current perception is coming about from the availability of current high end products,” adding that the prices cannot be lowered.

The government was moving towards boosting mid-market tourism, Zulfa observed. “This will provide more value for money, comfortable accommodation affordable to more people who want to visit Maldives,” she said.

Adapting to the Chinese market

The need to adapting to the Chinese market, which is dominating 15 percent of arrivals and plugging the gaps left by a decline in traditional European market, was highlighted by the survey team and the government.

Special Envoy Ibrahim Hussain Zaki, who launched the survey report today, reiterated that China is the dominating market and “products need to be changed to adapt to China market”.

“Otherwise we will not be able to sustain the market,” he said.

However, some resort operators inclined towards relying on the traditional European market.

“We need to find a strategy to maintain our traditional original market,” Sun Travel and Tours Chairman and MP Ahmed Siyam said, raising concerns over the long term dependence on Chinese market.

“We noticed arrivals from Taiwan increased in 2002. But after five years it dropped. And now we don’t see a single Taiwanese tourist here,” he claimed. “We must ask why Chinese are coming to Maldives. They don’t like the sun. They don’t like the beach or the diving.”

Negative publicity

The survey team observed that the Maldives is chosen as a destination mostly based on material published on internet, or from word of mouth. Therefore, it is critical to safeguard the reputation as a holiday destination, report recommends.

Shiyam meanwhile pointed out that the industry is threatened by increasing “negative publicity”, which has reportedly mounted due to the mass religious protest on December 23, 2011, and the short-lived nationwide spa ban imposed following protesters’ calls to close down the spas and massage parlors claiming that they doubled as brothels.

Shiyam claimed that the spa was one of the most enjoyed activities and their closure would create serious concerns. “We need to isolate tourism from politics to ensure sustainable tourism growth,” he asserted.

According to the report, snorkelling was enjoyed by 41 percent of tourists while diving and spa treatments received the same ranking from 17 percent tourists.

It also stated that one in four visitors return to the Maldives.

The main attractions include the Maldives natural environment, sun and peacefulness. Over half of the tourists rated the Maldives natural environment, quality of products, security and hospitality better than other similar destinations such as Seychelles, Mauritius, Thailand, Indonesia and Fiji.

However, the tourists were looking for improvement in cafes, restaurants, visits to capital Male and shopping, and fewer transfer delays.

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Flights fly high in new year

Ibrahim Nasir International Airport (INIA) has registered a significant increase in international flights since the new year.

According to Maldives Airports Company Limited (MACL), last Monday January 2 ranked as the highest air-traffic day with 95 flights, up from the previous single-day record of 89.

In addition to international flights 53 domestic flights, 379 sea planes and 11 other flights used the Maldives’ air space on January 2, bringing the daily air transit total to 538 flights, Haveeru reports.

MACL has said that the rise in air traffic is expected during this time of year, but added that it is causing some difficulties and delays, Haveeru reports.

MACL is working with GMR to resolve any complications.

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European decline could stall tourism in 2013: MATI

As the economies of America and the European Union (EU) become more vulnerable in the coming years, the Maldives tourism industry will see a decline in business, the Maldives Association of Tourism Industry (MATI) has predicted.

Maldives Association of Tourism Industry (MATI) yesterday claimed that decline in European traffic to the Maldives was due to economic stability in that region.

MATI Secretary General ‘Sim’ Ibrahim Mohamed pointed out that total tourist arrivals has not declined; in 2011, the Maldives set a new record of nearly one million.

“Occupancy rates in resorts have gone up following the arrival of Chinese tourists,” Sim told local media. “But the number of tourists arriving from Europe and other western countries has declined and we are threatened by the economic instability that Europe is experiencing.”

Maldives Inland Revenue Authority (MIRA) has lately released data indicating that tourism comprised a majority of state revenue in 2011. The State Budget for 2012 was created on this assumption, and leans heavily on expected revenue from tourism in the coming year.

Although the tourism industry has recovered impressively from devastating Boxing Day tsunami of 2004, Sim predicted progress would stall mid-2013 due to “global economic changes as economies of countries like America and the European Union become more unstable and vulnerable.”

However, the Maldives promises to remain atop its niche market of small island tourism. While Mauritius and the Seychelles are leading competitors, Sim affirmed that within the small island niche “we are unbeatable, and I believe it will stay that way.”

According to Simon Hawkins of the Maldives Marketing and PR Corporation (MMPRC), close correlation between a tourism industry’s marketing and arrivals is a strong indicator of success.

In 2011, Hawkins said, the Maldives destination board spent US$2 million on marketing and received close to one million tourists.

Comparatively, Mauritius spent US$13 million and received one million tourists.

“We’re six-and-a-half times more cost effective than Mauritius, and 30 times more cost effective than Indonesia,” said Hawkins. “We are batting very much above our weight, but that’s because the product is brilliant.”

Sim added that the Maldives product did not need to be reinvented during the European recession to suit the growing Asian market.

“Chinese tourists are like any Western tourist,” he explained. “When the Russians began coming to the Maldives they had some different expectations, but now they are used to what we offer. The Chinese will be the same.”

In 2011, Chinese tourists comprised a majority of total arrivals. However Minivan understands from conversations with resorts managers that while they come in high numbers they are not generally high spenders – while resorts make a bulk of their revenue from the bars, restaurants and spas, officials have noted that Chinese tourists’ primary expenditures are on board and transportation.

Minivan News inquired whether the 2013 presidential election would impact tourism.

“Political parties have matured, and the people have matured. They are accepting democracy,” Sim said. “2013 will be much better than when we started our multi-party system in 2008.

“Democracy is not a beauty pageant, it has ups and downs and hustle and bustle, and I think people understand that,” he observed.

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Opposition coalition to hold “national symposium” on February 24

The 23 December Coalition of religious NGOs and opposition political parties has decided to hold another mass gathering on February 24, calling the government to yield to the demands of the December 23 protest to “defend Islam”.

In press conference held today, coalition spokesperson Abdullah Mohamed clarified that the coalition is not organising a protest, while referring to the gathering as a “national symposium” to raise the voice of the people.

“We welcome people from all the islands to come and join the symposium on February 24,” Mohamed said.

The coalition representatives declined to give information to the press on the how the symposium would proceed, though Mohamed pointed out that the symposium will be organized according to the “pulse of the people”.

Hinting that “it will not be held under a roof”, Mohamed said only that “the symposium will be held in a location similar to where we held the previous rally”.

Five demands were previously addressed to the government: prohibit Israeli flights from operating in the Maldives, close all massage parlors “and such places where prostitution is practiced”, reverse the decision allowing the sale of alcohol in areas of inhabited islands declared ‘uninhabited’ – such as in Addu City and Fuvahmulah where the government plans to build city hotels – condemn UN Human Rights Chief Navi Pillay and apologise for her comments against flogging, and remove allegedly “idolatrous” SAARC monuments in Addu City.

The government subsequently addressed each point, most notably ordering that spa operations be shut down across the country and announcing that it would consider a ban on pork and alcohol in the interest of “respecting Islamic principles.”

The 2012 State Budget leans heavily on expected revenue from tourism.

Speaking at the press conference opposition Dhivehi Rayyithunge Party (DRP) Deputy Leader ‘Mavota’ Ibrahim Shareef said that the symposium is among a “series of actions” to be organised by the coalition.

“This time we are calling to defend Islam and the nation”, he observed.

Shareef said a delegation from the coalition will visit Sri Lanka to explain the December 23 protest and demands to officials of embassies unspecified, as it claims the Maldivian government has spread “many lies” to defame the coalition.

The coalition also intends to meet with international press to give accurate information.

Furthermore, the coalition intends to mark a “special day to inform the demands to President Mohamed Nasheed”, Shareef said, adding that the President is deliberately “twisting the meanings to aggravate us”.

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Piracy threat prevents passenger line from leaving Maldives

An American luxury passenger line en route to the Seychelles is stranded in the Maldivian waters due to “piracy risk”, while the passengers depart to the Seychelles through airline flights.

Secretary General of Maldives Association of Yacht Agents (MAYA), Mohamed Ali, told Minivan News on Sunday that the passenger line had arrived on December 29 and was scheduled to leave the same day after a brief stop near Male’.

However, he said the cruise captain had decided not to leave with the passengers on board due to “security reasons”, as there have been several attacks by pirates near the Seychelles.

“To avoid the risk, the 67 passengers on board were taken to Seychelles via Qatar Airways and Emirates last week,” Ali said.

As the passenger line is subjected to a daily fee of US$600 as long as it stays in Maldivian waters, he continued, “we are trying to send off the passenger line as soon as possible.”

He noted that the crew is taking the necessary security measures to ensure safety from a possible pirate attack.

“There are some maritime security companies which provide security to large cruises or shipping vessels like these. So the passenger line is arranging security before departure,” he said.

Pirate activity is predicted to be higher during November to February, with the increased number of cruise ships and yachts travelling this time of the year, according to Ali.

Meanwhile, due to increase in the pirate attacks in the Indian Ocean and the frequent encounters with Somali castaways in Maldivian territory, maritime experts have speculated that the piracy threat is growing in Maldives.

However, the Maldives National Defense Force (MNDF) has steadily countered that the country’s territorial waters have not come under direct attack from piracy originating in Somalia.

MNDF Spokesperson Major Abdul Raheem earlier told Minivan News that despite small vessels originating from Somalia washing up in the Maldives’ territorial waters – often with engineering problems – no reported attacks or activities linked to piracy were believed to have occurred in the country.

According to the Foreign Ministry, 37 Somali “castaways” are under police custody and are waiting for repatriation. They had been joined by three other Somalis, discovered last month on board a small dinghy drifting near Gaaf Alifu Atoll.

Potential pirate threats remain a major problem in ensuring the security of the archipelago, which depends on tourism for as much as 90 percent of its economy.

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Coalition condemns government for “not complying with demands and respecting Islamic principles”

The ‘December 23 coalition’ of NGOs and opposition parties has condemned the government for “making a mockery of the demands” and equated its decision to shut down resort spas and massage parlors with  “committing atrocities to defame Maldivians in front of the world.”

In a press statement today, the coalition noted “with surprise and regret” that the government has “not shown any indication either through words or deeds of complying with the demands and respecting Islamic principles.”

On December 23, the coalition rallied thousands of protestors across the island nation in a call to ‘Defend Islam’ in the Maldives.

Five demands were addressed to the government: prohibit Israeli flights from operating in the Maldives, close all massage parlors “and such places where prostitution is practiced”, reverse the decision allowing the sale of alcohol in areas of inhabited islands declared ‘uninhabited’ – such as in Addu City and Fuvahmulah where the government plans to build city hotels – condemn UN Human Rights Chief Navi Pillay and apologise for her comments against flogging, and remove allegedly “idolatrous” SAARC monuments in Addu City.

The coalition previously set January 5 as the final day for the government to address the demands.

Observing that deadline, the coalition today made notice that participants of the December 23 mass protest “are not enemies of the Maldivian economy and made no calls for any measures that would limit or undermine opportunities provided within the law for tourism or any other economic activity.”
The coalition argued that the government “gave a deaf ear to the demands, insulted principles of religion and mocked the Maldivian people.”
Religious party Adhaalath’s spokesperson Sheikh Mohamed Shaheem Ali Saeed was unable to comment on the discussions. Referring to the coalition’s next step, he said the party “will always prefer to solve problems peacefully.”

Speaking in his own capacity, ruling Maldivian Democratic Party (MDP) MP Alhan Fahmy predicted that “it looks like another protest.”

Fahmy disagreed with the coalition’s allegations against the government. “The government has been really responsible in this matter, it has made progressive moves to respond to the demands from the coalition and those who supported it,” he said.

Fahmy said MDP leadership had not yet convened to discuss the matter, and he could not comment on behalf of the party.

Following the December 23 demonstration, in the interest of “respecting Islamic principles”, the government adopted an all-or-nothing approach. The Tourism Ministry ordered that spa operations be shut down while the government announced it was considering a nationwide ban on pork and alcohol, two commodities prohibited in Islam.
Parliament’s National Security Committee also passed a resolution advising against licensing of Israeli national airline El Al to operate direct flights to the Maldives.
The government noted that the monuments in Addu fell under the remit of Addu City Council, and added that only Parliament could issue or request a statement against Pillay as it was to that independent body that she made her claim, noting that her visit was organised by the UN office in Male’.
President Mohamed Nasheed yesterday lifted the week-long ban “because the government does not want the economy to suffer any damage during the time Supreme Court takes to come to a decision.”
The government has lately sought a consultative opinion from the Supreme Court over whether operation of spas and the sale of alcohol and pork for tourism purposes within the Muslim nation of Maldives is constitutional.
Tourism is the nation’s leading economic contributor, generating 70 percent of the national gross domestic product (GDP) indirectly. Attorney General Abdullah Muiz yesterday pointed out that a substantial amount of the 2012 state budget of Rf14.8 billion (US$959.8 million) relies on expected revenue from the tourism industry.
Although no statistics are currently available, tourism officials have noted that the industry has suffered booking cancellations and “irrevocable damage” since mid-December, when news of Islamic extremism and political unrest began reaching international media.
Maldives Association of Tourism Industry (MATI) filed a case against the government at the Civil Court over the spa ban earlier this week.
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