Tag: Tourism

September incomes topple August

Maldives Inland Revenue Authority (MIRA) has released figures showing that the state earned Rf269.6 million more in September than in August, when income was reported at Rf260.7 million.

Altogether, MIRA collected more than Rf500 million (US$32 million) as income through September.

Resort rents accounted for the largest amount of income received (Rf196.4 million). Tourism Goods and Services Tax (T-GST) came in at Rf71.9 million.

Nearly half of the state’s dollar income which goes through MIRA comes from tourism rent payments (US$12.8 million).

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Climate experts and celebrities converge on Maldives for Slow Life Symposium

Luxury Maldivian resort Soneva Fushi is currently hosting a three day ‘Slow Life’ symposium bringing together big names in business, climate science, film and renewable energy to come up with ways to address climate change.

Attendees at the Symposium include famous UK entrepreneur Richard Branson, founder of the Virgin Empire; actress Daryl Hannah, star of films including ‘Blade Runner’, ‘Kill Bill’ and ‘Splash’; Ed Norton, star of films including ‘Fight Club’ and ‘American History X’; Tim Smit, founder of the Eden Project; Maldives President Mohamed Nasheed; and an array of climate experts and scientists including Mark Lynas and Mike Mason.

Richard Branson

Branson described how six years ago former US Vice President and environmental advocate Al Gore arrived at his house “and made me realise I had to make changes to the way I was doing business in the own world.”

Among other initiatives, Branson described his creation of a “Carbon War Room” funding scientific work into both climate education and the development of a renewable alternative to jet fuel.

“Ethanol was not a good idea because it freezes at 15,000 feet,” Branson noted. “So we’re investigating alternatives such as algae, isobutanol and fuel created from eucalyptus trees,” he said, adding that Virgin would be making a significant announcement on the subject next week.

Big business had the ability and prerogative to break down market barriers to the development of low carbon technologies, he said. Inefficient shipping, for instance, wasted US$70 billion a year, and led him to create a website allocating ratings to the most efficient vessels and ports, that had attracted interest from large grocery chains.

Branson also outlined his US$25 million prize for the development of a commercial technology capable of removing carbon from the atmosphere, an idea he said was inspired by the 1714 prize offered for developing a means of measuring longitude on a ship, and had attracted thousands of innovative ideas.

President Mohamed Nasheed

Speaking at the symposium on Saturday, Nasheed said it was “very clear, that regardless of whether you are rich or poor, too much carbon will kill us.”

“For us, this is not just an environmental issue. We need to become carbon neutral even if there was no such thing as climate change, simply because it is more economically viable. We spend more than 14 percent of our GDP on fossil fuel energy, which is more than our education and health budget combined.”

The most important adaptation measure, Nasheed said, “is democracy. You have to have a responsive government to discuss this issue. When I do something people do not believe in, they shout at me. But they are not doing this on this issue.”

The government had reformed its economic system and introduced new taxes “so we can fend for ourselves. We cannot endlessly rely on the international community.”

Since last year’s symposium the government had launched its renewable energy investment plan, and contracted an international firm to process waste at Thilafushi, Nasheed said, as well as introduced a feed in tariff which would make generating solar “more profitable than a corner shop.”

“If you are buying electricity at 40 cents a kilowatt hour you can sell electricity to the state at 35 cents. Soneva Fushi is going to be able to produce electricity with solar at 15 cents. We will be able to finance households as a loan to pay back from savings they are making. If you do the sums in the Maldives it is really quite possible, and I’m confident that households will see the commercial viability.”

Ed Norton

Meanwhile Ed Norton, star of films including ‘Fight Club’ and ‘American History X’, linked sanitation and waste management to human development, noting that more people had cell phones than toilets. As a result, Norton said, 1.7 million people died yearly of preventable diarrheal diseases – 90 percent of them under the age of five.

“The World Health Organisation estimates that for every dollar spent on sanitation, $3-34 is returned to the economy,” he observed.

Ocean dumping of sewage was standard, he noted, while septic tanks could leak and contaminate groundwater. He proposed a greater focus on using waste water for fertiliser and water recycling, rather than thinking of it simply as a matter of waste disposal.

Jonathan Porritt

UK environmentalist Jonathan Porritt, founder of Forum for the Future, observed that just by attending the Symposium he had contributed four tons of carbon dioxide to the atmosphere.

He referred to a colleague who was “so overwhelmingly conscious” of his carbon footprint that he weighed his attendance at such events by “the gravity of the audience, the quality of his speech and the effectiveness in lobbying and networking.”

However, he noted that travel and tourism was, overall, a “force for good in an increasingly troubled world.”

“We live in a world where governments invest US$1.4 trillion a year in war. We live in a world where US$4 trillion is invested in the war against terror, a world were fundamentalism is rampant and aggressive nationalism is all over the place. Many countries taking a lead on the issue suffer from a deep sense of exhaustion. Against that backdrop, hands-on [tourism] is a way to bridge the divide,” Porritt said.

At the same time tourism was driven by the balance sheet, and that while there was a great deal of ecotourism initiatives much of it was “marketing, with no credibility.”

“There is a focus on green rather than sustainable tourism, and no real understanding of what it means,” he said. “There is a reluctance to engage on socio-economic issues.”

“Gaps in equity are widening – and the gap between the have and the have nots is widening. Even as tourism contributes economically, because of the gaps resentment about the impact of the industry is rising – especially in a country where access to land, water, beachfront, reef and biomass is being privileged to support growth of tourism industry rather than the interests of local people.”

Tourism, Porritt said, was a microcosm of the local economy, with high end tourism such as that in the Maldives attracting the wealthiest and most influential people.

“For the one percent of the population that control more than 30 percent of the net wealth in a country such as the United States, it is very easy to insulate one’s self from real world by traveling from high security offices to gated communities to privileged, luxury resorts. It is a bubble through which the real world rarely penetrates.”

A state of low carbon with high inequality was “not a judgement anyone should be comfortable with. We should be thinking not just about the need to mitigate carbon impact, but offsetting inequality. I think what we are doing should be from the perspective of social justice as much as low carbon.”

However, he noted, it was easier to educate a few billionaires than the entire population of a country such as the US, distracted from the issue by Xboxes and cable TV.

“Billionaires have a vested interest in keeping the [planet sustainable], because they have enough money enjoy the planet,” he suggested.

Tim Smit

Founder of the Eden Project in Cornwall, Tim Smit, spoke about the need to mobilise people by capturing their imagination – and the responsibility the Maldives has as a symbol of a united effort combating climate change.

“Author CS Lewis said that while science leads to truth, only imagination leads to meaning,” Smit said.

“We are used to talking to halls of middle aged men who want to be inspired. We read the books about affecting change and they have the same language, and it is really dull: paradigm shifts, centres of excellence, leading edge thinking, cutting edge thinking, and when they are very excited, bleeding edge thinking. We don’t write books about the impact of this thinking.”

Incredible things, Smit said, were “being done by the unreasonable.”

“The Maldives has captured the imagination, and the elected political elite are showing charisma and leadership on the issue [of climate change]. The danger is that we listen to too many middle aged white people, and miss the point. I see an incredible moment when the story of Maldives becomes the story of us all – but it needs to be delivered with a pirate grin that says f*** it, we’re going to do this thing. I hate idealists. I like unreasonable people who do things.”

There was, Smit said, a danger that the Maldives would lose sight of its goal, and “lose the moment when the Maldives could become the most important place in world. The goal is open but the moment will be gone, and suddenly the bright future is no longer there, just a job – and not a job in the spotlight.”

The Maldivian people needed to be given the independence to make their own decisions, such as installing solar, and given control so that they knew the impact of flipping the light switch.

“Trust in the people of the Maldives to get excited of a picture of the Maldives reborn,” Smit suggested.

The Slow Life Symposium continues on Sunday.

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“Democratisation has its costs”: Maldives comes to terms with tax reform

The Maldives is coming to terms with a reformed tax system, following the introduction of a General Goods and Services tax this week.

Finance Minister Ahmed Inaz said the new system, which has raised the eyebrows of businesses, consumers and politicians alike, is a natural consequence of recent political changes and requires everyone’s support to function sufficiently.

“I think anybody could see that after the 2005 democratic reform, costs increased. These costs had to be met by additional revenue, but they weren’t,” he said.

Currently, the Maldives’ has a state deficit of Rf1.3 billion (US$85 million). Since democratisation, the Maldivian government has surpassed other national governments’ employment rates by employing 10 percent of the national work force. One third of government spending goes to state employees, and nearly half of the 2011 budget was spent on salaries and allowances.

The Goods and Services Tax (GST), which became operative on October 2, has raised a 3.5 percent tax on certain items. Contrary to an earlier tax which was paid for at the point of import and effectively invisible to the customer, the GST requires most businesses to charge an additional 3.5 percent directly to the customer at point of sale.

Certain items are tax exempt, a detail which has allegedly made it difficult to implement at stores selling a variety of products.

Inaz is optimistic that new tax reform system will cut costs and improve business operations. He said many businesses are compliant with the new measures, and are trying “their level best to be sure that this happens.”

“Business owners will have to crunch the numbers, and that will show them more about what is happening in their businesses. They will be able to better see how things operate.”

The GST is part of a larger tax reform system described in “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy” agreed to by the Maldives and the International Monetary Fund (IMF) in May.

The policy reforms include raising the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013. Tourism is one of the Maldives’ leading economic contributors.

Inaz stressed that the tax was a step towards self-sufficiency for the Maldives.

“The international community will not give us the money required to balance our deficit, it is us who have to raise that money and that’s everyone’s responsibility. We have to make sure we can stand on our own feet.”

Meanwhile, opposition party Dhivehi Rayyithunge (DRP) has expressed concern over the tax. After supporting its initial pass through Parliament, DRP released a booklet titled “DRP’s response to the government’s economic nuisance package.” The booklet said businesses were not sufficiently prepared for the transition, and requested a six month delay.

Noting “administrative confusion” and the country’s heavy reliance on imports, the DRP also suggested levying a customs duty at the entry point to the country as a more effective means of raising revenue.

“We believe the GST is a regressive expense. The government doesn’t have the infrastructure to support it, implementation of GST means it will have hire a lot of people.”

DRP Spokesperson Ibrahim ‘Mavota’ Shareef said today that the tax system had not been implemented prematurely, but that it would only benefit large businesses while harming smaller ones.

“The government is doing the opposite of what it preaches,” he said. “Our main problem with the bill is that the government has decreased the tax burden on the very rich, especially in the tourism sector. We want to see the current tax system overhauled and replaced with a modern one.”

Shareef said DRP supports other progressive taxes, and was in favor of the recently announced plan to decrease import duties starting in January 2012.

President Mohamed Nasheed yesterday said a policy to reduce import duties would bring prices down starting early next year.

The President’s Office Press Secretary Mohamed Zuhair told Minivan News that the waiving of certain import duties would be significant.

“Once the new tax system is fully operating, all will fall into place. Prices will drop to even lower than originally,” Zuhair said.

A bill to finalise the tax system is currently before the Majlis, and is expected to take another two or three months to be properly processed.

During the President’s tour of retail, grocery, and supermarket stores on October 3, Zuhair said that operations were “running smoothly”.

“The only issue was that many businesses had a shortage of coins. Maldivians have a habit of rounding up to avoid coin transfers, but in a successful economy coins are important. Maldives Inland Revenue Authority (MIRA) has been doing a commendatory job in distributing coins, and the Maldives Monetary Authority (MMA) foresaw the issue and has a distribution system in place,” he said.

When asked about the DRP’s opposition to the GST, Zuhair alleged that the party’s motives were political.

“They made their case to the President, but the President was advised by his advisors and economic experts that a taxation system needed to be implemented,” said Zuhair.

“It is true that the very rich have not been taxed appropriately as per their earnings,” he acknowledged. “Once the tax system is fully in place, things should stabilise.”

Shareef did not accept that there were political motivations behind the DRP’s objections. “It’s an economic and social issue, concerning the distribution of wealth,” he said.

Inaz did not wish to comment on the matter. “This is an economic issue,” he said.

State Minister for Finance Ahmed Assad previously observed that even with the new taxes proposed by the government, the Maldives still had the most generous tax system in the region – even compared with other island nations, and neighbouring countries such as India and Sri Lanka.

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Tourism sails on with luxury in fragile setting

Maldives tourism has made an impressive comeback since the 2009 global recession, and investment from China and India is expected to surpass precedents in coming years, finds a report from Care Ratings Maldives.

Nonetheless, the Maldives occupies a precarious market, and government controls limit foreign investment, the ratings agency found.

In 2005 Asia surpassed America as a tourist destination, coming in second to Europe. According to Care Ratings, Foreign Tourist Arrivals (FTA) surged this year as China’s economy flourished and European economies made a slow comeback. Chinese tourists are projected to account for 15 percent of Maldives FTA by 2020.

Plans are being made to expand capacity accordingly. The Maldives tourism sector will add 77 new resorts and increase bed capacity by 47 percent over the next three years, the report finds. Additional safari vessels are also expected to be added to the industry, which already boasts a fleet 150 strong.

By the end of 2011, the report projects the direct employments in tourism will have grown from 35,000 to 38,000. Fifty percent of these are likely to be expatriate hires.

Revenues are also expected to increase by 10 percent by the end of the year, claims the report.

Tourism is the largest contributor to Maldives national GDP and foreign currency, however the sector is restricted and vulnerable. The reports lists terrorism, global economic crisis, and limited land and human resources as obstacles to growth. It also points out that environment is a major factor of success.

“The tourism industry is capital-intensive in nature due to the high cost involved in leasing the land, developing the land and constructing a self-contained tourist resort,” states the report. Maldivian resorts frequently sell the appeal of the natural environments, but the Maldivian construction industry lacks the capacity to process raw materials.

Importing processed materials drives the average resort room construction cost up to US$30,000 to US$60,000, one of several factors which makes tourism in the Maldives a high-end market.

Human capital is mentioned as a complicating factor. Resort employment could account for one-tenth of the Maldivian population, 32 percent of which is unemployed. However, only half of resort employees are Maldivian.

Coincidentally, a recent study found that social stigma limited female Maldivian employment in the resort sector to 3 percent, a number far below the demographic’s potential.

Another challenge to growth is government oversight. “The industry now is very much regulated by the government of the Maldives,” states the report. “Tourism is now developed and managed according to country-wide policy based on a master plan.”

All Maldivian islands are government-owned, and resorts can only be leased for 25 to 50 years. Construction is limited by the “One Island One Resort” policy, which allows only one resort per island, and structures are limited to 20 percent of the land available.

Over the past three decades, the ministry has introduced three tourism master plans.

Although the report recognizes the complicating effect of government restrictions on developers and investors, it states attributes these plans with significant growth.

“The growth of the industry in the last couple of decades was mainly due to the efforts taken by the government to promote the tourism industry and the progress was largely on a planned path determined by the First Tourism Master Plan (1983-1992), the Second Tourism Master Plan (1996-2005) and the Third Tourism Master Plan (2007-2011).”

The Maldivian government also created the Maldives Marketing and Public Relations Corporation (MMPRC), which promotes the Maldives as a brand in the world tourism arena.

Last week, MMPRC recognized the value of the Asian travel market by co-hosting a travel agents networking event with GMR. In a nod to the region’s booming business culture, MMPRC MD Simon Hawkins pointed out the advantages of hosting meetings at Maldives resorts.

MMPRC aims to draw 1 million tourists to the Maldives by the end of 2012.This year, the Maldives reached 700,000 arrivals by September.

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Social stigma limiting employment of local women in resort industry, report finds

A new study finds that Maldivian women are the least employed demographic in the resort industry, accounting for only three percent of the total eight percent of female workers at resorts in 2010. Local and foreign men constitute 92 percent of the industry.

Tourism directly accounts for 30 percent of the Maldives’ GDP, and for 70 percent indirectly.

The thesis, “Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was prepared by Eva Alm and Susanna Johansson during their five-month stay in the Maldives in 2010.

According to their findings, “culture, religion, and women’s role in the family, the role of the family, safety, geographical spread, transportation, education and awareness” were the main factors preventing women from seeking resort employment.

Interviews show that resort life is perceived as ‘western’ and imposes the negative practices of consuming pork and alcohol, supporting nudity, and allowing extramarital sexual encounters on Muslim Maldivian women.

By contrast, Maldivian male resort employees are exempt from these risks.

“Working in a resort as a woman is perceived as bad, as going the wrong way, as not a good place for a woman to be,” said one source.

Women interviewed said social stigma prevented them from seeking resort employment. The combination of not being able to come home at night and working at a resort with a significantly higher ratio of men to women is considered intimidating, sources said.

One father said, “If my daughter would not have the possibility of going home every night, I would not let her work in the resort, it is not safe […] if a woman will not come home at night after work, and she would maybe have a relationship with a man in the resort, which could result in a pregnancy […] this would have very bad impact on the family and would not be tolerated.”

Maldivians who engage in extramarital intercourse risk social ostracism, and women sometimes face punishment for pregnancy outside marriage. The country has among the highest divorce rates in the world.

Parents are said to play a significant role in a woman’s professional future. “In Maldives, in our religion, we are not allowed to drink or be with just any guys and things like that. So our parents are scared about that,” said one young woman.

One resort manager said awareness is a major challenge to promoting female employment. “Convincing the parents is difficult. They are very possessive of the girls. The parent’s perception is that they will mix with the European culture and do bad things such as drinking alcohol.”

A government representative added that “there needs to be a focus on educating mothers and fathers of the women who are willing to join the industry and demonstrate that it is perfectly in order for their daughters to work in the resort sector.”

Female unemployment in the Maldives is estimated at 24 percent, while male unemployment is only eight percent. Reports indicate that the industrialization of fishing, an enterprise previously shared between women and men, and the beginning of tourism eliminated the need for two incomes per household.

According to the report, Maldivian culture does not encourage women to take on entrepreneurial or leadership roles in business. Women are found to be raised to follow men, and a lack of domestic care services prevent women from leaving their posts as mothers and wives.

Women interviewed said that in order to employ more women resorts should “become more Muslim.” Most said they would not work where they could not wear the burqa, although when told that several resorts allow the burqa they maintained their position.

Women were also unaware that many resorts provide mosques for their Muslim employees.

Separating resorts from local island culture was an early tourism strategy, claims the report. Tourism officials at the time were said to believe the policy would protect local culture.

The separation is now considered a factor in island underdevelopment. “The problem we have is that we have first class resorts in the Maldives, next to them are the third world local communities, the villages,” said a government representative quoted in the study. “We have to get these engaged as the people from the island communities can get direct benefit from the resort industry through participatory involvement and inclusive growth.”

Some resort companies, such as Hilton and Soneva, try to compensate for this gap by outsourcing tasks to local islands.

Hilton resort began the “Green Ladies” program, bringing in groups of women from neighboring islands to sweep the resort during the day. Soneva supported the Veymandhoo women’s production of chili sauce in 2008.

Soneva’s Social and Environmental Manager said localizing resort development made Muslim women more comfortable in new professional opportunities. “It has got all the elements necessary for a solid livelihood project. You got women involved, it’s got livelihoods, it’s got commercial value to it, and it’s got localization aspect to it”.

Yet island production capacity does not meet resort demand. “’The communities have to be very much upscale to be able to manage small businesses, because resorts are big business and they wont rely on people who can‟t provide for their demands’”, said one source.

“Women in Tourism: Challenges of Including Women in the Maldivian Resort Sector” was presented at Sweden’s Lund University in May, and is due for publication this month.

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Maldives hosts networking event for Asian travel reps

The Maldives is currently hosting representatives from over 30 tour and travel companies from across Asia, as part of a ‘Discover Your Island’ campaign to increase tourism from these countries.

The representatives were flown to Male’ by Singapore Airlines, while airport developer GMR and the Maldives Marketing and PR Corporation (MMPRC) set up a networking event with local resort and tour operators at Nasandhura Palace Hotel.

Speaking at the launch of the event, MD of the MMPRC Simon Hawkins observed that tourism arrivals had grown 15 percent year on year, and Maldives was expecting to reach one million visitors a year by November 2012.

“We currently spend US$2 million to bring in one million visitors. By comparison Indonesia spends US$70 million to bring in seven million,” he said.

The Maldives had historically based its marketing strategy on the twin drawcards of sun and sand, but need to differentiate itself given increasing competition with other destinations offering the same attributes, he said.

“One island one resort means that in the Maldives you can have a three star resort within several hundred metres of a six star resort, and everyone is happy and satisfied,” he said, explaining that most other beach destinations had roads, hawkers and crowded beaches.

“In the Maldives [tour and travel] operators have a hundred islands to choose from.”

In spite of the jet-lag, representatives spent the better part of two hours exchanging business cards with local resorts and travel operators,, reviewing services and exploring new opportunities.

Several representatives expressed interest in Hawkin’s suggestions for Maldives tourism, such as an increased focus on the high quality dining offered by many resorts and safari operators, and emphaised that individualising the customer’s experience was a priority.

Marketing and communications managers at the event meanwhile said that growing interest from the Asian market was driving their plans for the future. But other resort representatives indicated that adapting to emerging markets had to be achieved without alienating existing, established markets.

“The new Asian demand is very important, but the resorts that were designed to suit European travelers are trying to find a balance,” said Reethi Rah Sales Executive, Stephen Cordebas. “We don’t want European guests, especially those who come regularly, to feel like the whole package is changing to suit a new market.”

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Garbage floats freely from “impatient” boats

The Environment Protection Agency (EPA) has blamed a surge of garbage floating in Thilafushi lagoon on “impatient” trash boats; trash which is now flowing into the sea.

In 2009, the UK’s Guardian newspaper reported that 330 tons of waste are transported in Thilafushi island for processing. Thilafushi is commonly known as ‘garbage island’.

Head of the EPA, Ibrahim Naeem, said a “huge amount of garbage” has been collecting in the ocean, due partly to a change in tides. Speaking to Minivan News today, Naeem did not want to say whether the trash was coming from resort boats, but did say the problem “involves everyone”.

“The mechanism for waste collection and disposal needs to be improved,” he said. “The EPA has to do some work on the matter, and the people who are bringing in the garbage and contributing to its buildup also need to take responsibility.”

Naeem said the EPA had photographs and names of several boats that had been dumping garbage into the sea. The agency is now investigating 10 cases.

Naeem said legal action will be taken against boats caught dumping garbage, which would affect fishing and tourism, two of the country’s largest economic contributors.

Yet there are signs that both the garbage and a lack of regulation may already be affecting tourism. In a recent interview with Minivan News, French tourist Marie Kivers noted a lack of waste bins on Male and Guraidhoo.

“It’s funny because we who live abroad think that Male’ will be an example for the world about pollution and everything, since global warming is important here. But when you see the inhabitants in the Maldives, they put anything into the sea,” she said.

Some boat captains have claimed that boats from islands, safaris and resorts dump garbage into the lagoon instead of anchoring near Thilafushi, reports Haveeru. An earlier rule stating that garbage had to be dumped before six in the evening likely contributed to the rushed habit.

Reports indicate that the waste exceeds the capacity of Thilafushi. Naeem says some boats are getting impatient.

“The facility at Thilafushi is designed so that only two or three boats can dock and dump at a time,” said Naeem. “If the waste is not removed from the area, however, or the boats take a while, other boats won’t be able to get in and dump their waste.”

The EPA has said that arrangements are being made to ensure that waste is only dumped on the island under the supervision of a council employee – a thing earlier practiced, reports Haveeru. An official also said that boats traveling to Thilafushi will be charged according to waste weight.

Thilafushi is currently the only island designed for waste disposal in the Maldives. Naeem told Minivan News that there are plans for a new site to be developed in Raa Atoll.

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Conde Nast rates magazine rates Maldives world’s second most popular destination

Condé Nast Traveler magazine has rated the Maldives the second most popular island destination in the world.

The magazine’s 14th annual Readers’ Travel Awards also recognised the Kuda Huraa Four Seasons Resort as ‘The Best of the Best in the World’s Top 100’ resorts. The resort was also named ‘Best Overseas Leisure Hotel in the Middle East, Africa and Indian Ocean’.

Resort General Manager Sanjiv Hulugalle traveled to London last week to receive the award on behalf of the Four Seasons.

“This award is a testament to an amazing joint effort and we’re incredibly grateful to everyone who voted for us,” Hulugalle said at the ceremony. “We’re constantly looking to raise the bar.”

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Opening of premium lounge hints at airport’s future

The Plaza Premium lounge was inaugurated today at Ibrahim Nasir International Airport (INIA), a step in GMR’s wide-scale renovation of the airport terminal.

The renovation, which began approximately 10 weeks ago, was designed by Hong Kong-based Premium Port Lounge Management Company Private Ltd. A message from company founder and CEO, Song Hoi See, indicated that the company was eager to design the project and “add more flights to Male.”

The Plaza Premium lounge was opened with a ribbon-cutting ceremony and a reading from the Qur’an. Among the officials who cut the ribbon were Tourism Minister Maryam Zulfa and GMR CEO Andrew Harrison.

“This is a proud moment,” said Zulfa. “It is sad that some of the resorts and institutions in the Maldives do not measure up to the standards of our premium customers. I am happy that GMR is setting an example for the Maldives as it moves forward.”

Zulfa, who arrived today from an international flight, described some fellow passengers who called a baggage delay “typical.”

“I said, ‘No, this is not typical. This is atypical. Because GMR is now taking care of us.’ It was a relief to know that a negative experience was not typical of how our airport works.”

Tourism Minister Maryam Zulfa surveys the Plaza Premium Lounge with GMR CEO Andrew Harrison

Baggage beltways were recently expanded, while eight check-in counters and two security lanes are being added. “We are de-bottlenecking departures, and things are running smoothly,” said GMR Chief Commerical Officer Prasad Gopalan.

Gopalan said the airport had seen an even higher increase in traffic this year than expected. “There is more traffic from Asia, and we are expecting Russian traffic to increase as well.”

Harrison said the renovation process had informed GMR of the higher standards that travelers now hold. He noted that washrooms and check-in counters were being refurbished “to make it a more ‘Maldives’ welcome for travelers,” and added that former staff had been re-trained to meet premium standards.

The lounge is open to first and business class passengers, and to economy class passengers for an undetermined fee. Services include a buffet and a la carte menu, computer and internet access, television, and spa-style foot rubs.

Harrison told Minivan News that “the quality of this lounge is a commitment to the quality of airport that the Maldives and its visitors can expect to see in the future. Even though this lounge is an asset with a short shelf life, it is appropriate that we demonstrate what the new terminal should be like.”

The new terminal at INIA is expected to be completed over the next three years, and will have a capacity of 5 million.

The renovation’s estimated cost is US$1 million. More renovations will be completed before the tourism peak season of November and December.

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