Tag: Tourism

Out on a wing: Mega bets on Chinese market

The shifting demographics of the Maldives tourism industry presents new challenges – and a great many opportunities – for the country to grow as a destination, says CEO of new Maldivian flag carrier Mega Maldives, George Weinmann, during a ceremony in Male’ this week to mark the airline’s launch of direct flights to Shanghai and Beijing.

Since its maiden flight between Gan and Hong Kong early this year, Mega has focused on the country’s booming Chinese market. Chinese visitors last year showed the highest number of arrivals over more established markets, and were widely credited with insulating the Maldives from the effects of the economic recession afflicting the UK and Europe.

Weinmann emphasises that “while the Chinese market is now the number one market for the Maldives, is still not a mature market.”

“The agents in China don’t know the Maldives as well as the European agents who have been coming here for 30 years,” he explains. “The new agents are often asking us for help finding hotel rooms, and negotiate with the hotels – it’s not really our job, we’re an airline and there’s plenty of travel agencies on both sides – but oftentimes they aren’t connected. There have been incidents in the past where certain agents get very excited and think they can just fly their guests here, only to find there are no hotel rooms for their guests.”

Without intending to become a travel agency, the airline had found itself becoming an intermediary between the Chinese tour operators and resorts, he says, many of which are still getting to grips with the unique demands of the new market.

“We talk to resorts that are suffering with occupancy, perhaps 30-40 percent,” says Mega’s Marketing Director Ali Faiz, “and see how we can help each other. We also meet with resorts that are popular with the Chinese market and offer our jet to help them sell the Maldives.”

Whereas European guests tend to stay up to two weeks at resorts, the current trip pattern for Chinese visitors is very short – “four nights, five days,” says Weinmann.

“They are much more activity focused – a little less sun and sea, a little more doing things on a boat,” he says. “Like every other market they are very food conscious – but the type of food they are looking for is different, which for instance affects how we cater for inflight meals –  although everyone likes ice-cream,” he adds.

Moreover, “as someone who has lived in China for seven years – they are huge spenders. The Chinese love to buy things. One complaint they may have with the Maldives is that there is not enough stuff to buy – they come here often with large wads of money and then go home with it. That’s an opportunity for local businessmen.”

The market is also rather risk adverse, which the fledgling airline found to its detriment in May when Hong Kong authorities issued a travel warning for the Maldives, triggered by excitable global media coverage of opposition-led protests in Male’.

“That was a near tragedy for us. We almost didn’t survive that period,” Weinmann acknowledges. “It came at the same time as changes on our side with pricing, and we almost lost the entire month of May because people who had been intending to go to the Maldives but hadn’t yet bought their tickets decided not to go.

“There was very low additional sales in May. Those people who had already bought their tickets – who had spent hundreds of dollars on rooms – couldn’t get that money back so they came anyway, and of course there were no problems. But when a warning like that goes out, anybody who has the discretion to choose not to buy, to choose somewhere else or postpone their trip, will do so. It doesn’t matter if it’s a yellow, red or black warning – it’s a huge hit. Just ask people in Thailand about what they experienced during their local turmoil. It is a roller-coaster ride in terms of bookings.”

Mega worked with resorts and the government to try and reassure visitors that the protests were limited to a few streets of the capital city – which few visitors to the country even set foot on.

“Recovery takes time,” Weinmann says. “When the incidents are over, then you have to go out and educate the market and tell all the travel agents what is going on. For a market like China that is growing as fast as it is, they do have other choices, and they are not as comfortable with the Maldives as the European market, which sees such incidents as a small bump in road.”

“We did obviously recover,” he adds, “because we launched Beijing-Shanghai a couple of months later, and that’s been very successful.”

Mega subsequently decided to introduce free cancellation insurance for every ticket, covering the first night of accommodation in the event of a delayed flight, which Weinmann explains was a way of offsetting the non-negotiable cancellation policies of many resorts in the Maldives.

“It’s one of the biggest issues in the Asian market right now,” he said. “We are competing against other Asian markets such as Bali and Thailand, and other island destinations such as Guam that are developing very fast, and in many of these countries hotels don’t have the kind of cancellation policies that exist in the Maldives. It makes it more risky for tour operators to sell the Maldives – we’re trying to eliminate that risk.”

Weinmann believes the Maldives also has room to grow existing markets, and said Mega hoped to launch flights to so-called ‘tier 2’ cities and stimulate growth in places such as Eastern Europe.

Korea also has more potential, he explained, noting that Mega would introduce a flight to Seoul in September.

“There are current five wide-body aircraft flying between Korea and Hawaii every day. That’s a nine hour flight, and the Maldives is probably a little cheaper.”

India, on the Maldives’ doorstep, was exactly two years behind China he predicts.

“But it’s a challenge that regulations prevent a Maldivian carrier flying more than 200 seats to Mumbai or Delhi. We have 250 seats, and we’d like to change that.”

Cargo imports are another growth opportunity, Weinmann says, announcing 15 discounted tickets to kickstart a trade delegation of Maldivian traders and businessmen to find opportunities in China.

“Right now all the cargo coming into the Maldives goes through Sri Lanka, Singapore or Dubai,” he explains. “Not much is produced in these locations, it’s all coming from somewhere else – a lot of it from China. We want to increase direct imports from China which should mean less cost and cheaper prices, as there will be less middlemen involved.”

Meanwhile, the airline has begun recruiting more Maldivian cabin crew, in addition to the two classes already through, and is currently training six Maldivian pilots and soon, engineering cadets. Weinmann predicts the company will employ over 100 Maldivian staff by the end of the year.

“We not doing this just because we want to, but because it’s the right thing for the airline. We think Maldives aviation can grow a lot further,” he says.

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Authorities review feasibility of Maldives to India 30-hour ferry journey

Consultations are said to be underway to outline the economic viability of a proposed 30-hour ferry route between the Maldives and India designed to try and boost trade and tourism links between the two countries.

According to the Business Standard newspaper, Indian shipping authorities are looking into the possibility of running a passenger liner from the port of Cochin or Tuticorin as part of collaboration with their Maldivian counterparts to target both traders and tourist travel.

With any ferry service between the two destinations expected to last around 30 hours, research is ongoing into the possible benefits and demand for the services as a result.

Earlier this year, ferry services between India and Sri Lanka were restarted after a thirty year hiatus as part of aims to try and strengthen economic and diplomatic ties between the two different nations.

As part of the Maldives’ own commitments to hosting the 17th summit meeting of the South Asian Association for Regional Cooperation (SAARC) this year in Addu City, the government has outlined “Building Bridges” – both in terms of physical connectivity and figurative political dialogue – as a key aim for the meeting.

Both India and Sri Lanka are SAARC embers along with the Maldives.

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Aviation authorities await seaplane crash report before considering safety review

The Civil Aviation Department has said that it will wait to complete an investigation into the crash landing of a Trans Maldivian Airways (TMA) seaplane near Biyaadhoo Island Resort during a training flight this morning, before considering amendments to flight policy in the country.

The aviation body’s Director General, Hussein Jaleel, confirmed to Minivan News today that no injuries were reported to the two pilots involved in the crash – reported to be the only people on board at the time. The spokesperson said that investigators currently believed the crash had resulted only in structural damage to the seaplane after it came down near an assigned landing point in a reef by the South Male’ Atoll resort.

Jaleel said that he was presently unable to presently reveal many details about the collision, other than that the Civil Aviation Department’s Accident Investigation Committee were now interviewing the pilots involved in the flight as part of ongoing investigations into a possible cause of the crash landing.

An official spokesperson for TMA – which is one of the country’s two largest operators of seaplane services along with Maldivian Air Taxis – was unavailable for comment when contacted by Minivan News at the time of going to press.

However, in terms of the possible need to implement changes in regulation or seaplane policy following the crash, Hussein Jaleel said authorities would wait for investigations to be completed on today’s incident before making any changes. “However, if it is revealed that new policies are required we would ensure we did this,” he added.

Seaplane incidents

When asked about the number of incidents investigated in relation to the country’s seaplane operations from the start of this year, Jaleel said he did not have the exact figures on him at the time of going to press as aviation authorities investigated incidents of varying severity in the course of their work.

However, the aviation department director general told Minivan News that in terms of events like a crash landing, this was believed to be the first case of such an incident occurring in 2011.

Back in December 2010, the Civil Aviation Department confirmed that a collision had occurred between a Maldivian Air Taxi seaplane and another aircraft at Male’ International Airport that resulted in no injuries or major damage being recorded.

Authorities said at the time that investigators had found the collision to be a minor accident involving the wingtip of an aircraft colliding with another craft, an event which was not seen as “a major safety concern” for future operations.

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Resort giant rejects dismissed local workers’ allegations of foreigner bias

Hospitality giant Conrad Hotels and Resorts has rejected accusations concerning its treatment of a group of Maldivian workers made redundant earlier this month at its Rangali Island Resort, claiming the site adheres to both company and Maldivian labour laws when dealing with staff.

Responding to accusations made by a group of 29 staff that resort management recently decided to make redundant over concerns about profitability during the low season, Conrad claimed all its staff were treated “fairly” regardless of their ethnicity.

The group of staff dismissed this month by the company have alleged that whilst working at the Conrad Rangali Island Resort, they witnessed multiple examples of Maldivian workers being discriminated against in favour of expatriate workers of other nationalities. The group claimed that some staff were additionally made to flout expiry dates and other quality standards by management figures.

Some of the allegations reflect wider concerns about the treatment of Maldivian staff across the country’s resort industry, says the Tourism Employees Association of Maldives (TEAM), which it claims varies significantly in comparison to other countries.  The group claimed that these discrepancies may, in some cases, verge on being “racial abuse”.

Not singling out a particular resort for the practices, TEAM told Minivan News that it believed there were widespread discrepancies in the treatment of Maldivian resort staff in areas such as payment compared to resort workers of other nationalities.

“There are bigger concerns regarding some of these issues – particularly we see there is some salary discrepancy between Maldivian staff and other employees,” claimed TEAM President Ahmed Shihaam. “Right now however, we are focusing on more prominent concerns such as the possible introduction of a national minimum wage.”

The group of workers dismissed from Conrad this month claimed that they believed they had been removed from their positions for demanding action on issues involving site management and staff.  The workers were dismissed with redundancy packages, according to Conrad.

According to the group, management figures had threatened to fire members of staff for their role in trying to raise the issues, which they claimed were linked to strikes taking place at the resort over several days in March of this year.

“There is a lot of discrimination going on in the island, foreigners are more favoured than Maldivians, they earn more, have luxurious rooms to sleep and everything is so perfect for them. We sleep 10-15 men in a room, while foreigners sleep maximum three in a room,” a dismissed former worker at the Conrad resort told Minivan News. ‘’It is very regrettable that we are being mistreated and enslaved in our own country.”

The spokesperson for the group claimed that none of the staff who were given redundancy by the company had deserved to be removed from their posts; having tried to ensure that the “high standards” expected of the resort were being met.

One member of the dismissed group who worked in the resort’s house keeping department alleged that human resources officials at the site turned a blind eye when some staff failed to properly wash towels beyond soaking them in water, drying them off and throwing them onto an office floor.

‘’One day when I was at the house keeping office I was told to wipe out the expiry date of all the mouth wash bottles that has expired,’’ the person claimed. ‘’I told the house keeper that he can’t do that, but I was forced to do it if I wanted to work there.’’

Amongst a list of accusations, the dismissed staff claimed that some senior management figures had  abused their roles by arranging to have the resort’s high-profile underwater restaurant dismiss confirmed bookings so as to accommodate a private dinner for a senior resort employee.

The spokesperson for the group claimed that the company was aware of the restaurant closure, as well as a number of policies it claimed breached rules on safety and employment regulation.

‘’[Local staff] have to test wine, which it violates the Tourism Act. It is also not allowed to have a Maldivian as a barmen, but currently there is a Maldivian barmen at the island,’’ he alleged.

The group’s spokesperson alleged that he and his colleagues had also been asked to open a number of expired yoghurt containers in the main restaurant’s kitchen and to pour them all in to a big bowel to serve for breakfast that morning.

‘’We did it, it was not something related to us or something that would harm us, but we complained to  the management and there was no action taken against it,’’ he said.

Resort response

Addressing the accusations made by its former staff, Conrad Hotels said it preferred not to enter into a “public discussion” concerning the claims. Conrad said it offered several official channels within its organisation that allowed staff to address particular concerns over adherence to company rules and policy during their employment.

The company added that as an international hotel chain, it worked to ensure its employment policies were in line both with Maldivian labour laws and global company standards in order to protect staff at Rangali Island. The resort employed almost three Maldivian workers to each expatriate member of staff, the resort noted.

“The hotel follows employment policies that are consistent with the country’s labour laws and the company’s own standard practices. This includes, but is not limited to fair remuneration, respectful treatment of our team members, training and development opportunities, diversity recognition and fair treatment for all,” stated the company. “It is important to note that as of June 2011, 74 percent of the resort’s team members are Maldivian.”

Conrad also reiterated its claim that the decision to release 29 staff was made based for business reasons – with all members receiving redundancy packages to “help them through the transition.”

Without commenting specifically on the policy of an individual resort, ‘Sim’ Mohamed Ibrahim, the Secretary General of the Maldives Association of Tourism Industry (MATI) said the group had not been made aware or been involved in dealing with concerns about discrepancies in the conditions of Maldivian resort workers, as compared to other nationalities.

However, Sim said he believed that the government would not allow Maldivian staff to be treated unfairly and in a disproportionate manner to other nationalities of workers under the conditions of its Employment Act.

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The Maldives’ first ‘fair trade’ shop opens in Male’

The exotic necklaces made out of coconut shells are showcased alongside coconut shell bangles. The top shelf is filled with pieces made of wood, vases, containers and objets d’art.

In Male’ where shops with brimming shelves is the norm, ‘Athamana’ sets itself apart. This is the first fair trade shop in Maldives, filled only with products made by Maldivians.

“We wanted to create an outlet for people who do handicraft in Maldives, to enable them to get a good price for their products, and introduce the concept of fair trade here,” says Fathimath Shafeega, country manager of the NGO Live & Learn.

The NGO works on protecting and providing education on environment and promotes sustainable development with a fair trade culture. Their shop Athamana showcases traditional and new products created in Maldives.

Across the archipelago

Mixed within the range of traditional products like fine mats ‘Salavaai Kuna’ and lacquer ware, are innovative new products like virgin coconut oil and shoulder bags, and jewellary made from discarded denim items.

The virgin coconut oil produced on Filladhoo in Haa Alif Atoll is packaged in hand-woven baskets made out of screw pine leaves and comes in 50 and 120 ml bottles.

“Coconut oil is a new product that we are conducting in Filladhoo,” says Mohamed Moosa, vice-president of the island NGO ‘Ekuveringe Dhirun’ (ED).

The production of virgin coconut oil is a project in the northern islands organised by Live and Learn with funding from the Food and Agriculture Organisation of the United Nations and the cooperation of the local Ministry of Fisheries and Agriculture.

“We put out a notice, and from those interested we gave priority to people with low income to join this project,” says Moosa.

The team consists of 18 workers. Moosa explains that from the profit they make, 60 percent goes to the workers, while 30 percent is invested in developing the project and 10 percent is retained by ED.

“It provides a good income, and we already have two resort buyers, one of which is Bandos Island Resort.”

In the shop alongside each product the producer’s name is displayed, giving the item a personalised touch.

Virgin coconut oil produced in Haa Alif Atoll
More to come

In the near future the shop will have lotions and soaps, made from the byproducts of coconut oil. Other items to come include chilli sauce being produced on Veymandoo in Thaa Atoll from the fiery Maldivian chillli ‘githeyo mirus.’

There are challenges in making these ventures a success.

“We have issues of transport and the fact that most communities have not been very active in production before,” explains Shafeega. As most Maldivians tend to work individually, the issue of getting them grants has also arisen, as cooperatives are being registered for grants at the Ministry of Economics. “We are working on getting grants for individuals also.”

The Athamana shop also acts as a focal point for buyers, to enable the producers to have access to the retail market. Different buyers have shown interest.

“We have some buyers including high end resorts like Soneva Fushi,” says Shafeega. The shop receives orders and helps in delivering them. A lot of effort has gone in producing the Maldivian products on display, showcased in Live and Learn’s new Athamana shop.

The participation of society and businesses will be vital to make the first fair trade shop a success, and in enable the revival of traditional Maldivian products and the promotion of new ones.

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Tourism business worth US$2.5-3 billion, not US$700 million as thought, says President

The tourism industry in the Maldives is worth three to four times more than previous estimates, President Mohamed Nasheed acknowledged during a press conference this morning with journalists, ministers and industry leaders.

“Previously we had thought tourism receipts for the country were around US$700 million. But since collection of the 3.5 percent Tourism GST it has come to light that the figure is around US$2.5-3 billion,” President Nasheed said.

”I was told that the government’s expenditure was too high, but I told them it was not that the expenditure was high, but that the revenue was too low. There are not many ways we can decrease the expenditure of the government,” Nasheed said.

Nasheed was speaking ahead of parliament’s resuming sessions next week, where the ruling Maldivian Democratic Party (MDP) hope their new voting majority will push through major economic reforms. Most ministers were in attendance, as well as senior industry figures including Jumhoree Party (JP) leader Gasim Ibrahim.

Secretary General of the Maldives Association of Tourism Industry (MATI), Sim Mohamed Ibrahim, suggested the US$2.5 billion figure was optimistic, “as a lot of it is guesstimate.”

“The TGST income is variable depending on season, occupancy and volume of business,” he explained. “If they are projecting the figures from Jan-March for the rest of the year, that is the biggest time of the year and the figure will be very rosy. It may be a few years before we can calculate this accurately.”

Nonetheless, “the government will have a lot more money at its disposal for national development,” Sim predicted.

“I don’t think traders will have any problem paying taxes so long as other charges and levies are lowered. What business needs is predictability – this has been lacking in the past, particularly the calculation of rent and lease periods. They need confidence in the system, and things to be spelt out clearly. I think this is now happening.”

Historically the government had derived most its revenue from import duties, followed by bed taxes on the resorts, President Nasheed explained, both of which ultimately be abolished in favour of a modern tax economy.

One impending change – which was not given a date – was the sale of land for commercial purposes, Nasheed said, with all land, including resort islands, becoming a tradeable commodity.

“Ultimately that is where we have to go. I understand that this not the law right now,” he said.

The Maldives currently does not recognise freehold land, and furthermore lacks a central register of land ownership. Currently land is owned by the government and leased to commercial operators, although these agreements can extend up to 99 years. Resort leases are shorter, but under the current government are extendable to 35-50 years when a certain percentage is paid upfront.

Sim observed that only 20 percent of resorts had invested in the longer leases, “either due to their income [required for the upfront payment] or because the banks aren’t lending.”

“[Land purchase] might be an advantage to the industry, as resort land has always been treated differently,” he said.

“It was briefly introduced in the past but was later revoked. Given the shortage of land in the Maldives, land ownership can be a touchy subject. But now it is possible for the government to reclaim land.”

Nasheed has previously observed that the government’s new financial changes, which include an income tax and a general GST it hopes to approve in parliament, were “perhaps far more radical that introduction of political pluralism in the semi-liberal society that we had.”

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China-Maldives bilateral trade volume reaches US$64 million: People’s Daily

Bilateral trade between China and the Maldives reached US$64 million last year, on the back of a boom in Chinese tourist arrivals, up 56 percent on 2009, writes Liao Zhengjun for the Chinese newspaper The People’s Daily.

“China has actively encouraged successful domestic enterprises to participate in the Maldives’ infrastructure construction and other projects. With preferential loans from the Chinese government, a Chinese company is now busy constructing the 1,000 Housing Units Project in the Maldives, the largest economic and trade cooperation project since the two countries established diplomatic relations.

“The project is expected to greatly alleviate the overcrowding in Male, the capital of the Maldives. “A friend in need is a friend indeed,” and the two countries have stood by each other at all times and under all circumstances. China provided immediate assistance to the Maldives when it was hit by the Indian Ocean Tsunami in 2004, and the Maldives also offered a helping hand shortly after the 2008 Wenchuan earthquake.

As the cultural exchanges and cooperation between the two countries have been steadily expanding in recent years, tourism has become an emerging area for the bilateral cooperation. More and more Chinese people see the Maldives as a favorable tourist destination. According to statistics from the Maldives government, the Maldives received nearly 120,000 Chinese tourists in 2010, marking that China has become its largest source country of foreign tourists.”

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MATI claims tourism on track to maintain growth in 2011, despite Male’ protests

The Secretary General of the Maldives Association of Tourism Industry (MATI) claims the country’s tourism industry remains on track to maintain growth despite recent widely publicised clashes between police and protesters in Male’ during May.

The total number of tourist arrivals to the country between January to April 2011 amounted to 327,563 people, up 16.9 percent over the same period last year, according to official statistics provided by the Ministry of Tourism, Arts and Culture. Of this demand, Europe continued to dominate visitor market share during the period.

MATI’s ‘Sim’ Mohamed Ibrahim told Minivan News that, as with for a number of destinations across South Asia, the Maldivian tourism sector had begun to “recover” from the impacts of global financial uncertainty in recent years. Sim said he believed the industry, through the use of strategies such as discounting during the off-season, appeared well placed to continue to profit from growing tourist interest, even with perceived challenges facing the industry relating to taxation and recent protests between police and members of the public.

Sim’s comments were made as the government pledged to increase a 3.5 percent Tourism Goods and Services Tax introduced on January 1 to five percent as part of economic reforms that led to a week of protests and violent clashes in Male’ during the beginning of this month.

These protests, which were said to have been instigated as a “youth movement” despite the involvement of several opposition politicians, saw thousands of Maldivians campaigning on the streets leading to occasional violent clashes that drew international coverage, raising some concerns over tourism safety.

Sim claimed that despite these protest concerns – which the government alleged reflected an attempt by some opposition politicians to “mislead” foreign media over their scale – the demonstrations occurring in Male’ and some islands were completely isolated from the country’s island-based resorts.  He added that the demonstrations would not impact tourism despite some nations issuing travel warnings for the Maldives.

Despite these potential concerns shown by some tourism markets, Sim said that he did not expect a huge negative impact on tourism arrival figures for May 2011 when released by authorities.  The MATI Secretary General added that he was optimistic over the impact of the government’s plans to introduce and extend direct taxation on all travel industry services and goods.

“There was some concern over the [tourism goods and services charge], the government appears to be going in the right direction by pledging to do away with duties such as bed charges by focusing on direct taxes,” he said. “On the whole we believe the tax will be beneficial to the country and the industry.”

From MATI’s perspective, Sim said that the organisation believed that instead of various duties and charges currently imposed by the government, the industry would be better served by replacing these charges with one or two “solid” direct taxes like the existing goods and service charges – a policy he claimed the government were already pursuing.

“We believe this would present a healthier picture for finance [in the industry],” he said.

When addressing potential future growth for visitor numbers amidst the Maldives’ peak tourism season drawing to an end in April, Sim said that “quite a lot” of discounting has been occurring within the industry to try and bolster arrivals.  However, the tourism association secretary general said that the decision to discount was ultimately profitable for the industry.

“We must not lose sight that the Maldives is a good value for money destination. For hoteliers, the most important thing is to keep the [visitor] figures going. There is quite a lot of discounting occurring to try and ensure more confidence to the market,” he said. “We are seeing more Chinese coming and although they may not be as high yield – in terms of spending power – than visitors from markets like Russia, they are arriving in good numbers.”

According to the latest Tourism Ministry figures, during the first four months of the year, European tourists including travellers from destinations like Russia accounted for 67.8 percent of the total market share of visitors compared to the same time last year up by 10.6 percent over the same time in 2010.

Asia and the Pacific represented 28.1 percent of the total tourist market with China alone accounting for 15.3 percent of all tourism arrivals over the period. Over the same time in 2010, visitors from the region increased by 35.1 percent to 92,132 people.

Among other regions, the Americas were found to represent 2.4 percent of the tourism market between January to April 2011, the Middle East accounted for 1.1 percent of arrivals and Africa represented 0.6 percent of the total tourism market.

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New7Wonders “infringing sovereign rights of Maldives” by keeping country in competition, claims MMPRC

The Maldives Marketing and PR Corporation (MMPRC) has issued a statement reaffirming the Maldivian government’s decision to withdraw from the New7Wonders competition.

The statement follows claims by the Geneva-based foundation’s head of communications, Eamonn Fitzgerald, that the Maldives was still in the competition “because the authority to withdraw a participant from the campaign is a decision for New7Wonders alone, not for any government agency.”

The government withdrew from the competition on May 18, after claiming that New7Wonders’ commercial entity, New Open World Corporation (NOWC), had solicited hundreds of thousands of dollars for the country “to compete meaningfully”.

“We no longer feel that continued participation is in the economic interests of the Maldives,” said State Minister for Tourism Thoyyib Mohamed, at the time.

The MMPRC today said that a second statement was necessary “to halt any further misrepresentation by the NOWC regarding the involvement of the Maldives in their competition.”

“After the many attempts by the MMPRC to negotiate and explain our financial situation requesting a reduction of the price to meaningfully compete and stay in the competition, we  are again perplexed to learn that the NOWC are considering taking a smaller sum of money from a third party in order to keep the Maldives in the competition,” the MMPRC stated.

Secretary General Maleeh Jamal of the Maldives Association of Travel and Tourism Operators (MATATO) said yesterday that the association had been in contact with New7Wonders and was considering working on the event in the government’s stead, claiming that the competition promised “enormous return on investment”, and that “US$500,000 for such an award would be quickly recovered.”

The MMPRC today stated that “the democratically elected Government of the Maldives is the only legitimate authority to act in the name of the Maldives and its people”, as “NOWC originally sought acceptance and involvement of the Maldives in the competition with a government signature and payment.

“The Cabinet (not the MMPRC) has made the final decision to withdraw from the competition due to their findings. We feel that the continued participation of the Maldives in the NOWC competition is a matter entirely up to the democratically elected government of the country. Any infringement of this sovereign right, including continued disregard for our position on the matter, will leave us with no alternative but to seek legal recourse.”

In a recent opinion column for Minivan News, Fitzgerald argued that the MMPRC’s “unfounded complaints regarding the campaign sponsorship options have to be seen in light [of the] extraordinarily positive numbers.”

Fitzgerald referred to two “independent studies” he claimed estimated the economic benefit to each of the seven wonders as “US$1.012 billion”, and the total benefit to previous winners as “US$5 billion”.

The MMPRC stated that it “does not agree with the business arguments as quoted in the article for Minivannews.com. To imply that you can guarantee a positive response of an advertising campaign or PR stunt that is yet to happen is wholly unethical.

“The NOWC-commissioned reports and estimates cannot guarantee and secure a positive outcome for the Maldives. There are so many variable factors as to why marketing activities are successes or failures ‐ but no two scenarios are identical and so generalisations and assumptions should not be made when spending huge sums of the country’s money.”

The MMPRC highlighted several articles in the government’s contract with NOWC, noting that “the obligation to pay is determined and decided by [the Government of the Maldives] abilities and resources and that NOWC will respect this.”

“In light of our recent economic riots and financial crisis which was broadcast to the world, we feel that NOWC have totally disregarded our situation.”

The MMPRC further claimed that “despite our emails and answer phone messages to Fitzgerald, New7Wonders have refused to respond to our communications. We have also noted that their office premises appear to be empty and their colleagues with whom we previously had regular communications are no longer available.”

Fitzgerald said New7Wonders was reviewing the MMPRC’s statement, and confirmed that “all MMPRC messages to New7Wonders have been duly received and filed by us. As New7Wonders accepted the resignation of the MMPRC on May 17, this agency is no longer New7Wonders’s counterpart in the Maldives, so we have no reason to respond to it.”

He added that New7Wonders would issue a statement regarding the continued participation of the Maldives in the campaign on Thursday May 26.

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