Tourism – Page 29 – Minivan News

National Museum will broaden exploration of Maldivian history

The New National Museum will give Maldivians the opportunity “to examine and reinterpret our culture and whole way of life”, claims Ahmed Naseer, the state minister for Tourism, Arts and Culture.

“It’s a great museum complex that includes Male’s best garden park. We now have a lot of space for people to express themselves in various ways, and where people can take refuge from this hectic life in Male. A place where they can relax, experience a bit of entertainment, and improve their historical and cultural knowledge.”

Built by the Chinese government as part of a UNESCO project planned for almost 20 years, the new museum will officially open on Independence Day, Monday 26 July.

For the opening, the new building facing Chandanee Magu will show exhibits mainly from the old museum at the nearby Sultan’s Palace, while the other new building across the park will feature an exhibition of 120 faiykolhu or Maldivian legal deeds and other official documents dating from the 1600s to the 1930s, according to Aminath Shareef, who has been cataloguing the faiykolhu.

They have never been exhibited before, and were selected from 800 documents discovered by chance in Male in December 2008. “We’ve chosen a variety of documents for Maldivians to see at the opening,” says Shareef. “They are written in Dives Akuru, Tana, English and Urdu scripts.”

“The first Maldivian museum was established in the early 1950s,” says Ahmed Naseer. “Our collection has moved four times. At last it has found a permanent home. We will also try to acquire other private collections that people have in their homes. These people are waiting for a secure place to exhibit their precious possessions. We will be inviting them to display their collections, or lease items to the museum. We may even buy their collections once we have the legal framework in place. So it’s a very exciting future.

“We can finally address many issues that have lain dormant in our society. Historians use old books and other things to interpret history, but in our case there are very few books and the questions about where Maldivians came from and who we were before and after we converted to Islam – these questions have remained unexplored. Through the museum we can start examining and interpreting periods of our history, and this will give us a chance to find some answers.”

“Many Maldivians are aware of the fascinating work done on coral stone at the old Friday mosque. We are in the process of applying to UNESCO to have the mosque placed on the World Heritage list. In the Maldives, coral stone sculpture is a common factor throughout the atolls and some experts claim Maldivian coral stone work is the best in the world. Of course that is debatable, but through the museum we can examine these issues, and assess our heritage.

“There is a lot of interest among our young people and students. They are all looking forward to the opening. It’s something good that’s happening. We plan to integrate the museum with the education system. At the moment the heritage department is involved in setting up administration for training staff, but we will also be inviting lecturers to utilise the museum space.”

“Now the building has been finished, and the President and his cabinet decided we should open it on Independence Day,” explains Mamduh Waheed, deputy minister for Tourism, Arts and Culture, “we have to show our appreciation to the Chinese government and assure them that we will utilise the facilities they have so kindly provided.

“Within the ministry and the new heritage department we don’t have the capacity to handle the opening. Former members of the National Centre of Linguistics and History (which has now been disbanded) are helping, but even then we needed much more assistance, so the cabinet decided to put together a taskforce.”

Many Male organisations and government departments are taking part in the effort to have the museum ready for the official opening, according to taskforce co-ordinator Aminath Athifa, “Dhiraagu are working on the PA system, the Male’ Municipality and STELCO are helping, and the police are providing security as well as the MNDF who are also handling the physical transfers and exhibit arrangements. Every movement of our collection is photographed and documented.”

Regarding the museum’s long-term plans, Ahmed Naseer says, “We’ll be exploring non-academic methods of creating interest. In the future, there’ll be exhibitions to attract people who would not normally think a museum is a place for them. A lot of our old craft skills are dying away and they need to be revived. For example, the mat weaving that still occurs in Gaadhoo on Huvadhu atoll, and the lacquerware from Thulhaadhoo in Baa atoll. We will have exhibitions that include the craftspeople, and they can show others how mats and lacquerware are made. In Male we have a very fast pace of life and young people are often quite unaware of these skills. The people from the islands can show us how these beautiful things are created and it will inspire a resurgence in our craft skills and ability to earn more tourism income.”

The training of staff is the biggest challenge facing the museum’s administrators, Naseer explains. “We expect to receive assistance from other countries who are experienced in museum management, and hope to send our young people to neighbouring countries to get training in preservation methods.

“Invitations will be sent to foreign students to come and work as interns with local people; for example through the Heritage Centre in Singapore. We are planning to have exchange programs enabling our people to work overseas in other museums. This will help alleviate our staff shortages. A lot of people are looking forward to this; the level of expectation is high.

“From the beginning of the consultative process almost two decades ago, an important issue was the provision of a human resource program to train people to run the museum and maintain the collection. But the human resource requirements were not attended to; all the focus was on getting these huge buildings erected. It’s a pity that UNESCO didn’t insist on the training part of the project.

“Maldivians are very interested to learn about their heritage,” Naseer believes. “Most of it is not known. They will be able to question things for the first time. They were used to just obeying and accepting what they were told; not using their own minds. This is an opportunity for Maldivians to improve their knowledge of their past. They don’t have to be afraid to ask questions.

“A museum can be an exciting place that inspires people and we will develop the sort of trained staff the Maldivian people need to help them understand their heritage.”

Sultan’s Park and the Eden Project
An integral part of the new museum is the development of Sultan’s Park, situated between the two museum buildings, into a unique Maldivian botanical garden.

“Maldives is Eden’s latest project area,” says the organisation’s English curator, Ian Martin. “At the moment we are trying to renovate this very attractive garden and turn it into something with a big emphasis on the plants of the Maldives – how people think about them, how they use them. These plants can be used for fruit and vegetables, but there can also be plants for their spiritual satisfaction, appreciated for their beauty.

“Over the next year or so, we’ll really get involved with the transformation of a rather traditional ornamental garden into something very special for Maldivians. It will become a place where Maldivians can understand themselves and what their future could be – giving them ideas about how they can progress towards a more sustainable economy that isn’t just relying on fish and tourism.”

199lpibu — The museum will help promote research into Maldivian culture

Ian Martin worked as a horticulturalist in tropical countries for 23 years before joining the Eden Project fourteen years ago. “My links abroad became useful to promote Eden’s philosophy of improving the understanding and care of plants for crops and conservation around the world,” he says.

“Helping in the initial landscaping work are labourers and other staff from the city’s nursery and the Male Municipality, and of course the MNDF personnel who have been really great and very easy men to work with.”

“The second phase of our work will be turning Sultan’s Park into a specialised garden – the only place in the world where you will find this particular collection of plants with these stories,” Martin explains. “We want to produce something distinct for the Maldives – something beyond being a nice garden with pleasant shade. Maldivians will find plants that have played a key role in their cultural identity. It will become a place for children to understand what it means to be a Maldivian. It can’t be boring, it has to be entertaining, and something they won’t be able to find anywhere else.”

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Government investigates accused MPs’ “dark and evil schemes”, while UK issues travel advisory

The British Foreign and Commonwealth Office (FCO) has issued a travel warning for the Maldives following recent political turmoil in the country, urging caution around “large political gatherings”, while debate on the political deadlock has spread to the House of Lords in the UK Parliament.

During Question Time, the UK Labour Party’s Lord Foulkes expressed “disappointment that President Nasheed seems to be reverting to the bad habits of his predecessor”, following the detention of People’s Alliance (PA) MP Abdulla Yameen, and urged the government to pressure the Maldives to restore “democratic freedoms”.

Conservative Lord Howell, also State Minister for the FCO, responded that the government was “pursuing full encouragement through our high commission in Colombo and other means to ensure that democratic development continues.”

Nasheed’s restoration of his cabinet ministers was “a step forward”, Howell promised.

Conservative Lord Naseby pointed out that the Maldives “is no longer a protectorate of the United Kingdom… and that being the situation, what role do we have at all to interfere in what is in fact the Maldivian exercise of democracy as they interpret it?”

Yameen meanwhile remains in MNDF custody on the Presidential Retreat ‘Aarah’, although appears free to communicate with the media given that Minivan News was able to contact him yesterday.

The Maldives National Defence Force (MNDF) – and the government – insist that the MP and high-profile businessman is under ‘protective’ custody after demonstrations outside his home last week turned violent.

Yameen has told local media he does not wish to be detained in ‘protective’ custody. The MNDF have also refused to present him before the court on a court order, raising some international eyebrows.

The President’s Press Secretary Mohamed Zuhair stuck to that story, insisting Yameen was being “protected” rather than “detained”.

Zuhair also claimed Yameen’s custodial protection was not unconstitutional, as the opposition has claimed, although Minivan News is still awaiting clarification from government lawyers as to how this is so.

“The MNDF is working absolutely within the constitution,” Zuhair said. “Yameen is being held by the MNDF, not the government. If Yameen is concerned about this he will be able to challenge it in court.”

“Dark and evil schemes”

Beyond the debate over Yameen’s detention, and recent court cases concerning the legality of his arrest along with that of Jumhoree Party (JP) leader Gasim Ibrahim, Zuhair said that given the severity of the allegations against them, neither could be considered prisoners of conscience.

“I cannot describe these people as political leaders – they are accused of high crimes and plots against the state,” Zuhair said.

“These MPs are two individuals of high net worth – tycoons with vested interests,” he explained. “In pursuing their business interests they became enormously rich during the previous regime, and now they are trying to use their ill-gotten gains to bribe members in the Majlis and judiciary to keep themselves in power and above the fray.”

“They were up to all sorts of dark and evil schemes,” Zuhair alleged. “There were plans afoot to topple the government illegally before the interim period was over.”

Zuhair explained that the government felt obliged to take action after six MDP MPs came forward with statements alleging Yameen and Gasim had attempted to bribe them to vote against the government.

The opposition PA-DRP coalition already has a small voting majority, with the addition of supportive independent MPs, however certain votes require a two-thirds majority of the 77 member chamber – such as a no-confidence motion to impeach the president or vice-president.

“In one incident early on in this administration, following the President’s return from Italy, they set up a telephone and a video camera in a committee room in parliament, brought a judge to sit in, and then tried to get two members of the president’s delegation swear on the Qur’an under oath that the President was drinking alcohol,” Zuhair observed.

The privatisation of Male’ International airport had clashed with the vested interests of the accused MPs, Zuhair claimed, sparking the current political debacle.

“Gasim was concerned the new airport might take the charter flights he had intended would be landing at the new airport he is building in Maamagilli,” Zuhair alleged, “while Yameen is a third party supplier of fuel at Male International Airport through the Maldives National Oil Company, which has representation in Singapore.”

The fuel trade is the most immediately lucrative part of the airport deal, Minivan News understands, and is a key reason behind both GMR’s interest and the government’s decision to award the contract to the Indian infrastructure giant. GMR has told Minivan News it will amalgamate the trade under one umbrella, a decision that will likely affect current third party suppliers.

Meanwhile Opposition DQP leader Hassan Saeed, who opposed the airport privatisation and is currently lobbying in the UK for international support for Yameen’s release, “is receiving huge legal fees from both Yameen and Gasim,” Zuhair claimed.

NGOs speak

A coalition of NGOs including Madulu, the Maldivian Democracy Network, Huvadhoo Aid, Transparency Maldives, Maldives Youth Action Network, HAND and Democracy House, meanwhile issued a statement “categorically denouncing the undemocratic actions of the three Powers of the State, at a time when democracy is in its infant stages in the Maldives.”

“We believe recent political and civil unrest is a consequence of these three arms of the State disregarding the spirit of the Maldivian Constitution,” the NGOs said. “We believe a culture of manipulation of the law to infringe upon the rights of one another has developed and that the three arms of the State have failed to give each other due respect.”

“It is not responsible on the part of the parliament, that they should pass laws that undermine the powers of the executive.

“It is unacceptable that the executive, should use its powers to harass and deter the functioning of the parliament, to disrepute the judiciary and to try to exert undue influence on the judicial system.

“The lack of consistency in the rulings of the courts, and actions which undermine the trust of the people in the judicial system are contrary to the high standards which are expected of Judges. We call upon the judiciary to work to restore the people’s faith in the judicial system.

The NGOs added that “other concerned State institutions” have also failed to “give due regard to the situation” and have acted irresponsibly.

The coalition also urged political parties to refrain from bringing violence to the streets, but condemned the security forces “for stepping outside the boundaries of the law with regards to arrest and detention” and the recent distribution of private telephone conversations by the media containing implications of corruption behaviour among MPs.

Between a rock and the Maldives

The government well aware of its status as international darling on climate change, but Nasheed appears willing to risk international censure for the sake of isolating Yameen while the state accumulates evidence in the background. Police were preparing to “make a splash” on the subject, Zuhair hinted.

However even if this evidence is obtained, demands from the international community – and opposition – that the government respect the rule of law and the judicial system, mean the government is faced with the new problem of legitimising its case against the businessmen and opposition leaders, now that allegations of obstruction have been levelled at the judiciary – including, yesterday, from the police themselves.

The government has been urging public respect for the judicial system – and the President’s Political Advisor Hassan Afeef has stated that the government will abide by any rulings from the Supreme Court.

The Judicial Services Commission (JSC), tasked with reforming the judicial system, has three sitting judges as members and vested interests, according to the President’s outspoken member on the commission, Aishath Velezinee.

“Of the 207 of the judges currently in office, 39 have degrees or higher. Some left school before grade seven, meaning they haven’t completed primary school,” Velezinee noted.

In addition there are seven sitting judges found guilty of a criminal breach of trust; five with allegations of a criminal breach of trust; two being prosecuted for an alleged breach of trust; one on trial for sexual misconduct; two have been found guilty of sexual misconduct; one was found guilty for an offence which had a prescribed punishment in Islam; and another who has both been accused of a criminal breach of trust, and found guilty of sexual misconduct – a total of 19 with documented criminal history.

Behind the scenes the executive is racing to nominate new judges before the interim period concludes on August 7, when sitting judges are granted automatic tenure.

However nominations for any new judges will have to be approved by the Majlis, which was cancelled this morning on points of order that developed into a scuffle outside.

“[The MPs] are trying to derail the process,” suggested Zuhair. “They are also panicking because they have no way of knowing who is going to be [implicated] by these corruption charges.”

As for tourists reading the today’s travel advisory urging caution in the capital, Zuhair observed that they “should be happier to know the top dollars they are paying are not being used for corrupt purposes.”

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GMR not worried about airport politicking, will invest US$373 million

The GMR-Malaysia Airports Holdings Berhad (MAHB) consortium that recently won the controversial bid to develop Male’ International Airport will spend US$373 million on the upgrade, MAHB has reported.

Speaking at the opening of the cavernous Delhi Terminal 3 last week, GMR Manager P Sripathi told Maldivian journalists that physical work would begin on the airport towards the end of this year.

“The first phase is organising the finances and transitioning the airport from a government-run enterprise to a privately-run enterprise,” he explained.

“The transition will be a new thing [for the Maldives] and we will be there to help with that. We have done such things in other places, and we know how to go about it,” he said.

“There are over 100 various items have to be agreed and signed off between the [incumbent] Maldives Airport Company Limited (MACL) board and ourselves, but we expect to see work start on the new terminal 9-10 months from now.”

Sripathi said that within six months GMR would upgrade existing facilities at Male’ International Airport “to a level that international passengers and tourists may [expect]. We will deal with the ‘pinch points’ that are there today.”

Ultimately the development will involve 45,000 square metres of new terminal, repair and expansion of the runway, parking and taxiing space, and a turning point so more flights can be landed in the space of an hour.

The infrastructure giant’s ‘brownfields’ approach – refurbishing an active airport, as opposed to a ‘greenfields’ or ‘from scratch’ project – mirrors that of its much larger airport development in Dehli. The old terminal was upgraded prior to the opening of the new one last week, which is now expected to cater to 90 percent of the airport’s passengers, with capacity of 34 million per annum upgradable to 100 million.

Sripathi acknowledged that while nothing of similar scope was going to be built in the Maldives – Male’ International Airport currently handles 800,000 passengers per annum (each way), “[Dehli] is definitely in the vein we are planning.”

Representing a company about to plow US$400 million into Hulhule, Sripathi is unsurprisingly unconcerned about rising sea levels: “Worried? Absolutely not. Land that has been there for 2500 years is not going to disappear in 25 years,” he chuckled.

Local controversy regarding privatisation and the recent political upheaval have given equally little pause to the infrastructure juggernaut – but its recent entertainment of the Maldives press pack suggest it is sensitive to domestic public opinion.

“We are not worried, because we are out of the fold. We are here to do a job,” Sripathi said.

The debate [over privatisation] has obviously been there for a long time, and is perhaps coming to an end, that we leave to [the politicians]. We are only here to do our bit.”

Accusations by opposition parties about the transparency of the bidding process were not something in which GMR saw itself involved, Sripathi said.

“Let me distinguish our role from the government’s role,” he said. “Whatever the political debate that goes on in the country, we shouldn’t be interfering – that is not our duty. That is between the executive and the [opposition]. In this particular instance, if there is opposition to privatisation then this debate has taken place over many years. Otherwise government wouldn’t have initiated this privatisation program in the first place.

airport3 — Natural lighting in the new terminal building

“The World Bank IFC has [monitored] this exercise and given a very good report, and that is where this should stop,” he said.

The government’s calculations acknowledge that the strength of GMR’s bid came from its US$78 million upfront payment (compared with US$27 million from the second-highest bidder) and in particular, its 27 percent sharing of fuel revenue.

Based on GMR’s forecast, the government anticipates that 60 percent of government revenue from the airport deal will derive from fuel – $74.25 million annually between 2015-2020, increasing to US$128.7 a year from 2025-2035. This in turn was the most significant element of the final ‘net-present-value’ calculations to determine the winning bid.

The Turkish-French consortium TAV-ADPM, who expressed dissatisfaction with the bid evaluation process to newspaper Haveeru and requested a “re-evaluation of the bids”, expressed disbelief that the GMR-MAHB consortium would be able to offer such a high percentage of the fuel trade to the government “without facing any loss.” TAV-ADPM had offered 16.5 percent, warning that pushing prices higher would drive buyers away.

Sripathi claimed 27 percent was “absolutely reasonable. We have done our homework, otherwise we would not have made the bid.”

“In Male [airport] there are two types of fuel trade going on: MACL sells directly to airlines, and in another kind of sale, parties buy from MACL and then sell to airlines,” he explained. “We looked at the margins of both lines of business, kept the same percentages, and calculated what we could offer the government if we took over all this and amalgamated it under one umbrella. The margin we can give to the government? 27 percent.”

Quizzed as to whether it was reasonable to estimate a revenue share by forecasting fuel prices over the lifespan of a 25 year agreement, Sripathi replied “everybody predicts. There are international agencies that predict the way fuel prices will go up and down.”

“I’m talking about the top line,” he said. “Bottom line, if the fuel prices go up, similarly everywhere will go up and the selling prices will also go up. We have to put a margin in there.”

At its airport in Hyderabad, GMR allows five independent fuel suppliers to compete to offer the most competitive price to the airlines.

In Male, “the volume does not support that. In India there are refineries and many fuel companies operating, and fuel companies can sell directly to the airlines,” Sripathi noted. “But in the Maldives fuel is imported, and the volumes are such that not many people come and buy fuel – the model is different.”

While its fuel figures are undoubtedly one of the major reasons behind GMR’s winning bid, a simple fuel monopoly is unlikely to recoup the consortium’s US$400 million investment.

Either GMR anticipates that global growth in the fuel trade is worth the risk, or it is taking a hit on the fuel price for the sake of offering a much lower 10 percent share of gross airport revenue, as compared to the other bids (TAV-ADPM offered almost 30 percent). The only figures available to the government in estimating this revenue (a staid US$20.43 million by 2025-2035) will have derived from the existing commercial revenue from the airport.

Compared to the glittering Gucci-lined corridors of airports in tourist cities such as Dubai, Male’ International’s 4-5 meagre departure lounge shops and dilapidated eateries look positively downtown in comparison – a striking missed opportunity, given the bulging wallet of the average visitor to the Maldives.

Sripathi indicated that the consortium is very interested in the well-heeled concourse traffic – sufficiently interested for the infrastructure giant to invest a sum equal to almost half the country’s entire GDP.

“It’s a lovely project. The type of tourists coming are from the very high-end tourism market, therefore the business opportunities are plenty,” Sripathi hinted.

“I would say the airport is naturally located to advance a lot aspects, like cargo. For example, many people would be surprised to know just how much cargo goes through the airport, because of the number of international connections and wide body aircraft using the airport. People are transiting air freight through the Maldives from places like Colombo – this means there is niche value out there.”

Some investment will be recovered through a US$25 airport development tax, set by the government for all bidders to be levied only on international travellers at time of departure and added to ticket prices.

Inside the proposed concourse — Inside the concourse

Sweetners

Many longer term “vision” projects associated with the airport seem designed to appeal to government planners. The airport will be unlocking 50 acres of land and will develop “what we envision will become the Maldives’ financial district,” Sripathi said. “That’s from our vision document. [The government] asked what can be done, and we used our expertise and experts from the US, and this is one of the things we have proposed.”

The company also runs a social responsibility foundation, GMR Varalakshmi, that funds schools and vocational training in areas where it operates. The company took the Maldivian media on a tour of its centre near Hyderabad, which included a residential technical training college running free courses for 500 young people in trades ranging from air-conditioning and electronics to IT, sewing and hotel management – often in conjunction with the group’s partners and suppliers. Guides emphasised the importance given to instilling discipline and professionalism in students, as well as technical training.

Regarding salaries and employment of existing airport staff in Male’ – a key point of contention among the opposition parties critical of the deal – Sripathi commented that the company was “not about to bring Indian standards [of employment] to Maldives – income levels and expenses are dependent on place – it is independent.”

Ground handling, currently outsourced to Island Aviation, will be taken over by the new airport company, Sripathi confirmed.

“Whether we need more than one ground handling company depends on the size of business,” he said. “If size of business allows it, then we can [involve another company], otherwise there will be single party doing it to international standard.”

For other airport staff – aside from security, immigration and air traffic control, which will continue to run by the government as per other international airports – the 1500 people currently working at the airport “will become part of the privatisation process. We are in talks MACL board members,” Sripathi said.

“We are looking at their concerns and anxieties – ultimately people think somebody is coming into the country to take over the airport. But we are here to help develop the airport’s assets and show people its full potential,” he continued.

“But what is important keep in mind is that investment in an airport is a heavy investment – US$400 million is a heavy investment. These sorts of numbers must be returned to us – and the government – otherwise we both cannot survive.”

Disclosure: Minivan News and 10 other representatives of the Maldivian media recently toured Hyderabad airport and attended the opening of Dehli Terminal 3 as guests of GMR.

Correction: A previous version of this article erroneously referred to ‘Malaysia Airlines (MAHB)’ in one instance, where it should have read ‘Malaysia Airports Holdings Berhad (MAHB)’. This has been corrected.

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DRP will not honour “shady deals” made over Male’ International Airport

Vice President and Spokesman for the opposition Dhivehi Rayyithunge Party (DRP) Ibrahim Shareef has said the DRP will not honour “shady deals made according to vested interests” if the party comes to power in 2013, referring to the government’s privatising of the country’s airports.

The government has shortlisted three parties to run Male’ International airport and will select one over the next 3-4 days.

The parties include Aéroports de Paris Management Company of France (ADP) and Turkish company TAV Airports Holding Company, Indian company GVK Airport Developers in partnership with Swiss Flughafen Zurich AG, and GMR-KLIA.

Shareef expressed concern that the government’s efforts to privatise state assets, such as the airport, were not occurring with parliament approval.

“Parliament is in the process of amending a public finance bill that will stipulate the government has to put these decisions before parliament,” he said.

“If the governing party will not accept this, then the new [DRP] government will not honour this type of shady deal. We will not honour shady deals – only lawful deals according to parliament.”

Shareef said the airport was currently “making the government money”, and the asking price it had set “is so low. [The deal] is riddled with corruption,” he alleged. “If the government has nothing to hide, it has nothing to lose from asking parliament.”

Minister for Civil Aviation and Chairman of the Privatisation Committee Mahmoud Razee told Minivan News that “as far as I understand we are proceeding according to the public finance act which is currently in force. Parliament legislates but actual delivery is up to the executive.”

It is the opposition’s “prerogative to say what they wish, but the reason why experienced and reliable companies are involved in this bid is because they believe that this is a viable project.”

The Male’ airport privatisation deal would be for 25 years, extendable by another 10 years, and would require a minimum level of investment towards upgrading the airport in the first three years to meet a certain level of service.

“A certain percentage of the service charge will to go to the government, and in addition [the operator] will also prescribe a percentage of the revenue,” Razee said.

Within three years, the government would expect a new terminal on the eastern side of the airport islands, up to international standards, and the completion of aero bridges (passenger walkways), effectively doubling the annual capacity of the airport from 1.6 million passengers to 3 million passengers.

The intention was to enable fast growth of the country’s tourism market, he explained.

“It’s bound to grow – particularly the Chinese and Indian markets,” Razee said. “We’ve already received applications from Air Asia and several Chinese carriers.”

Meanwhile, the government yesterday signed an agreement with Dubai-based company Supreme Fuel Trading to manage Gan airport for 30 years, in an agreement intended to hasten development of the southern region of the Maldives by allowing 747 class aircraft to land.

“At the moment the largest aircraft that can land [in Gan] is the 767 and the Dash 100-200,” Razee said.

The government has also received a proposal from GMR to upgrade Hanimadhoo airport and increase tourist traffic to the northern atolls.

For a country dependent on international tourist arrivals, the airports are the ventricles of the Maldives economy. Addressing concerns that privatising them would loosen the government’s control over these critical assets, Razee observed that all the interested parties being considered “have experience running many international airports”.

“Security will continue to be overseen by the Maldives National Defence Force (MNDF), and the airport will be certified by civil aviation authorities irrespective of who is running the airport,” he explained.

Tourism in the Maldives is showing signs of steady growth, with an increase of 20 percent in the first five months of 2010 compared to last year.

Arrivals for first five months of this year were seven percent higher than for the same period during the boom year of 2008.

Meanwhile, the 91 resorts in country had a steady occupancy rate of 82.3 percent.

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Maldives suffering worst coral bleaching since 1998

The Maldives is currently suffering the most serious incidence of coral bleaching since the major 1998 El Niño–event that destroyed most of the country’s shallow reef coral.

Coral bleaching is caused when rising water temperatures stress the coral, leading it to expel the algae it uses to obtain nutrients. When water temperatures rise even slightly, algae leaves the coral polyp and enters the water column, causing the coral to lose its colour and eventually die.

Reports of bleaching have been trickling in from marine biologists and researchers across the country.

Hussein Zahir from the Marine Research Centre (MRC) has been collecting reports of the bleaching, and said that based on his estimates, “10-15 percent of shallow reef coral is now completely white, while 50-70 percent has begun to pale.”

Senior Marine Biologist Guy Stevens, based at the Four Seasons Resort in Landaa Giraavaru, said that he had noticed that bleaching was beginning to occur last year “after a change in the weather linked to El Niño. The last one in 1998 was pretty catastrophic, and reefs in the Maldives have been recovering ever since.”

“It had a huge impact across the Indian Ocean, and the Maldives was most affected – pristine reefs suffered coral mortality rates of 95 percent,” Stevens explained. “At the time people were mortified and scientists were predicting the end of the reefs – coral is the foundation of the whole reef ecosystem.”

Coral in North Male Atoll at different stages of bleaching

Since the devastating El Niño in 1998, marine biologists in the Maldives “have been holding their breath for the next one. In the meantime the coral has been slowly recovering. It was pretty depressing in 2003, but roll forward to 2010 and it’s starting to look good again. It recovers exponentially.”

Meanwhile, colleagues of Stevens based in Thailand, which escaped largely unscathed in 1998, have reported coral mortality rates “of up to 100 percent.”

“The hot spots move around, but they cover a big area and the coral here could easily take another hit,” Stevens commented.

Zahir noted that temperatures this year were following similar patterns to those of 1998, with a surface temperature in April of one degree above the long term average.

However the recent drop in temperature, brought on by rain and the onset of the southwest monsoon, has lowered the surface sea temperature and brought some relief, “and may give the coral time to recover.”

“Now the temperature has dropped from 32 degrees to 29-30 degrees, so hopefully things will improve. The conditions are right for the coral to become healthy again,” Zahir noted, however he emphasised the need for the tourism industry to assist with monitoring the bleaching.

“Here in the Maldives we have a vast reef area, and the MRC has very little capacity to do surveys. From the very beginning we’ve been running a bleach-watch reporting programme with the dive industry, but for some reason the feedback has been very disappointing. There’s a hundred resorts, but I can count on my fingers the ones who are working to raise awareness. I know it might impact on their marketing, but this needs to be documented.”

All the MRC required was GPS coordinates and an indication of how much bleaching was occurring, he explained.

In the meantime, both Stevens and Zahir noted that there was little that could be done to prevent further bleaching.

Cooler temperatures may have averted disaster

“There is very little we can do, especially in a resort environment, other than reducing human impact on the reef while it recovers – that means ceasing things like sand-pumping and beach renewal on a daily basis, while the reef is especially vulnerable to sedimentation,” Zahir explained.

Verena Wiesbauer, a marine biologist at Male-based consultancy Water Solutions, said she had just returned from visiting two islands in North Male’ Atoll and had documented heavy coral bleaching.

“The reefs had only just recovered, and now it’s struck again. It’s a big setback,” she observed.

“Fortunately it’s not as bad as 1998, and now the temperature is dropping. But I hope someone will keep track of the paling coral, to see if it gets its colour back.”

Wiesbauer added that the bleaching did not appear to have affected fish numbers yet, and suggested that “many fish don’t need live coral as long as the structure is there for them to hide in, and many algae feeders don’t mind [bleaching] at all. But there are some specialist coral feeders we need to watch for changes.”

Meanwhile, like Zahir, Stevens observed that the tourism industry appeared to have been in no hurry to report that bleaching was occurring.

“That’s something the resorts obviously don’t want to publicise,” Stevens commented. “But I don’t think it’s any good burying our heads in the sand, when there’s going to be no sand left to bury our heads in.”

The artificial coral breeding programs run at many resorts were well-intentioned, “but rather like putting a band-aid on a gushing wound.”

“It doesn’t address the issue. Rather [breeding programmes] are a tool to raise awareness and alleviate pressure on the local reef. But there are things like sand-pumping that resorts should halt during periods of bleaching because it makes the problem worse,” he said, concurring with Zahir.

“Otherwise there’s very little we can do – it’s really a global issue. We haven’t seen a reduction in fish life, turtles and mantas, and it seems those parts of the ecosystem can survive while the reef structure is at least in place, but overall I think we’re going to see a gradual decline. Coral reefs may be the first ecosystem we’ll lose on our planet.”

Images courtesy of the Marine Research Centre (MRC).

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Profits from resorts that serve alcohol are haram, explains Dr Zakir Naik

Visiting Islamic speaker Dr Zakir Naik clarified during a question and answer session this morning that profits generated from the sale of alcohol are haram (prohibited), and urged the Maldives to encourage investment in halal (permitted) tourism.

“In Islamic finance, you cannot involve in any business as the owner of that business if it is even one percent a haram activity,” Dr Naik said.

“As a main partner you cannot be involved. If you are investing as a pool and you are a small partner, then a little bit is permitted, but as a 100% owner I cannot say ‘fine, I will have a hotel that will allow alcohol, and that money I will give to charity.’ You cannot say that. Because you are involved in haram activity.”

It was permitted, Dr Naik explained, to invest in part in a mutual fund where a haram activity might be a small percentage of the investment, as “then I can give the small amount to charity, because I have no major say in the business. But if I am a bigger shareholder, I cannot allow even 0.1% of haram activity to take place.”

Under Islam the use, handling and sale of alcohol are considered haram to Muslims, a tenet that led to vigorous opposition against the government’s attempt in February to legalise the sale of alcohol to non-Muslims on inhabited islands. Critics of the regulations claimed they were unconstitutional, as Article 10(b) of the Maldives’ Constitution states that ‘no law contrary to any tenet of Islam shall be enacted in the Maldives..

However the country depends heavily on tourism for its economy, particularly resorts which profit from the sale of alcohol, many of which are owned by local businessmen.

Dr Naik, who is speaking tonight and tomorrow at Maafaanu Stadium, after being invited by the Ministry for Islamic Affairs, questioned why the Maldives had no resorts that were “100 percent halal.”

“Your country is so beautiful. I have visited many countries in the world and I have to profess, the islands in Maldives are par excellence. I’ve been to many parts of the world, been to many top resorts in the world, but the one where I am staying in the Maldives is par excellence. Allah has blessed you with such beauty, scenery and natural resources,” he said.

“I put forward the proposal that why don’t we have an Islamic resort? I’m aware the Maldives prohibits alcohol for citizens, but those people who come from outside the Maldives can have access to these things which are haram for Muslims.”

Such resorts, he suggested, should be “exclusively halal, free of pork and alcohol, and with proper segregation and dress code – it will be a benefit.”

Similar segregated, alcohol and pork free hotels in other parts of the world had proven very successful, he explained, “with revenue far more than other hotels. The same thing can be done here.”

“The income for people investing in such Islamic resorts will be much higher,” he suggested. “I have spoken to government officials about it, and they say Inshallah, they look forward to it. Believe me it will attract more tourists very soon, in the next couple of years, with better revenue and a better profit.”

State Minister for Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed has similarly argued for promotion of Islamic “cultural tourism” within the Maldives, noting that “a lot of hotels, such as the Intercontinental in Medina, are without alcohol. What about developing alcohol-free resorts; Islamic tourism, just like Islamic banking?”

Dr Zakir Naik is speaking at an event at Maafannu stadium tonight and tomorrow, at 8:45pm.

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President Nasheed informs South Korean industries on investment in the Maldives

As part of his visit to South Korea President Mohamed Nasheed met with executives of the country’s business sector, fisheries industry and the media.

In his meeting with representative from the business sector held at the Intercontinetal Hotel in Seoul on Friday, the president informed them of the business and investment opportunities in the Maldives.

President Nasheed spoke of the potential investment opportunities in green energy and housing projects in the Maldives.

He noted South Korea was a growing market for the Maldivian tourism industry and an important partner in the fisheries sector.

The president also met with the president of Korea Trade Investment Promotion Agency (KOTRA), Hwan-eik Cho at the KOTRA Centre to discuss investment in the Maldives, especially in the fisheries, energy and housing sectors.

According to the President’s Office, a number of South Korean companies expressed interest in investing in the Maldives.

He then met with the Director General of Distant Water Fisheries Bureau of the Ministry of Food, Agriculture, Forestry and Fisheries of South Korea, Lee Cheol Woo, and the Chariman of Korean Overseas Fisheries Association, Kyung-Nam Chang.

Present at the meeting were also representatives from Sajo Industries and Dongwon Industries, two South Korean companies working in the fisheries and business secotr.

President Nasheed spoke of the challenges faced by the Maldivian fishing industry, and said the government wanted to expand the overseas market for fish products so foreign companies could buy fish directly from Maldivian fishermen.

After his meetings, the president met with South Korean press and spoke mostly on the environmental challenges faced by the Maldives and his commitment to bring the issues of climate change to the international stage.

President Nasheed concluded his visit to South Korea on Friday.

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President Nasheed meets with Consul of Seychelles

President Mohamed Nasheed met yesterday with Honorary Consul to the Maldives in Seychelles, Lambert Bonne.

The meeting focused on strengthening bilateral relations between the countries, especially in the areas of tourism and fisheries.

President Nasheed said forging a stronger link between small island states would give a louder voice to those states in the international arena.

Bonne assured his full cooperation towards strengthening ties between the two nations and briefed President Nasheed on the economic situation in Seychelles.

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Comment: Fixing the economy will be painful

In my last article, I spoke about the seemingly intractable problems that our Maldivian economy faces – most notably the fact that we have spent far too much than is sustainable given our level of economic activity.

The theme here is to talk about how to deal with these problems and the challenges we face in doing so. No doubt explaining the problems – especially with the benefit of hindsight – is much easier than suggesting remedies. Moreover, given the extent of our past excess and misdeeds, the remedies required are likely to be both bitter and painful.

Our immediate problem is how to reduce our fiscal deficit. On a theoretical level – this is quite simple.

Approximately 50 percent of our expenditure is on paying government salaries and allowances – and we can cut down foreign travel, close down our embassies, turn off air conditioners at our offices – but ultimately unless we make some inroads into this important component of public spending – it will be impossible to do anything meaningful.

No doubt, all efforts must be made to reduce waste before we start slashing either incomes or jobs. The higher salary levels must take bigger cuts than the lower paid staff – as the government has already done so.

In reality however, this is both a political and a logistical nightmare. We all know members of family or friends struggling to make ends meet on the current civil service salaries. Laying off a large chunk of the population at a time of an economic crisis seems counterproductive to regenerating the economy.

Logistically, it is complicated because a system of voluntary first-come-first-serve resignations, particularly if the government is willing to forgive their education ‘bonds’, would mean that the most capable civil servants would depart first, leaving us with the least dynamic people actually running government. In an increasingly polarised community, it would be difficult to distinguish between people fired on the basis of professional incompetency or political allegiances.

Difficult though these policies may be, a country that has a third of its total work force working for the government is simply not sustainable. The key therefore becomes how to do this in a manner that has the least negative impact on our economy. For this – three broad initiatives are required.

First and foremost, significant opportunities for retraining must be made available. This must be combined with a public relations campaign on how retraining should be for anyone at any stage of their career. It must also be based on market requirements – with significant impact on developing skills necessary for our economy.

The tourism sector, foreign languages, technical skills, accountancy and business skills are just some of the options. More initiatives can be introduced to both existing and new private providers of training through public-private partnerships.

Other policies that must be pursued include the allocation of reduced rent or free land for private education providers, tax exemptions on educational material, as well as rebates of fees for those who successfully pass courses and find employment.

Secondly, access to credit for starting small businesses must be expanded. The key obstacles to this – particularly the high costs of borrowing from a narrow financial sector – must be addressed. The high costs of borrowing are partly due to the fact that the legal options for banks in the case of non-performance are uncertain.

Furthermore, without a credit information system, there is a significant missing component that makes people more disciplined when paying back their loans.

Last but not least, the fact that we realistically have one-and-a-half banks in the country (BML and to some extent SBI), the market mechanisms forcing these firms to be both efficient and customer orientated is missing. We need to encourage more banks to set up shop in the Maldives – and allow people access to a wide variety of banking products.

Finally, significant incentives must be provided for the private sector to start employing more Maldivians. This must be done first and foremost by revising our labour law. The existing legislation is overly burdensome and expensive for businesses – and more flexibility must be allowed.

With the coming of a new taxation mechanism, significant leeway must exist for the government to provide rebates and other incentives for those who employ more Maldivians. Start-up companies must also be provided with exemptions – particularly in strategic sectors deemed important for long-term growth.

However, even if we can introduce these policies – and this is a big ‘if’ given our intractable inability to get anything done within this political system – let us also not kid ourselves into thinking it would not involve a significant amount of hardship.

Even with countless retraining facilities, or access to credit or even benefits for private sector to employ locals – there will be a group of people simply unable to maintain their existing living conditions and as such their situation will no doubt deteriorate. One must assume that the current ‘pickiness’ of the local population to defer certain kinds of jobs to foreigners must also be revisited.

For those vulnerable groups, basic levels of protection – particularly in terms of access to healthcare and education – must be allowed. The current trajectory of the Government’s Madhanaa (health insurance) policy must therefore continue – and perhaps must be provided at subsidised rate to those unable to find jobs.

On a more fundamental level therefore, what we are looking at is a paradigm shift in the role of the state. If you take a long-term view of the Maldivian economy – it was effectively characterised by a system of subsistence fisheries and small scale agriculture – with the government earning revenue from trading of the excess products generated from these primary industries.

The country therefore had a system of governance that effectively involved a (selectively) benevolent state providing welfare for those that it deemed worthy – especially through jobs. Furthermore, the direct arm of the government – being mostly in Male – was felt on a smaller percentage of the people because the population of the country was more evenly distributed.

With the emergence of tourism however, we saw a dynamic private sector go on to take the driving seat of the economy. The state no longer has, or should have, the resources to provide direct employment to the people on such a large scale. No doubt, a basic level of protection to all must be provided – and what constitutes this basic level will continue to be debated for years to come. The role of the state must now become that of the regulator and the facilitator – allowing jobs, productivity and wealth to originate and be distributed according to forces of a dynamic market system.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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