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CHAPTER IV
GROWTH AND DEVELOPMENT OF TOURISM IN MALDIVES
Tourism as the largest sector of the economy in the Maldives, as it plays
an important role in earning foreign exchange revenues and generating
employment in the tertiary sector of the country. This chapter gives a
detailed account of the development of tourism industry; initiatives taken
by the Maldivian government to promote tourism in the country were
studied.
The Maldives has a population of 298,968 (in 2006) spread among 196
islands. Strong disparities are evident in the population distribution
between the islands: Male, the capital island, has a population of 102,377,
or nearly one-third of the total population, whereas there are 142 islands
with fewer than 1000 inhabitants and 76 islands with fewer than 500
persons only three islands have a population greater than 5000. Hence,
most of the inhabited islands are sparsely populated while a small number
of islands are heavily congested. The growth of Male‟ is a result of
migration from the other islands as people seek better job and educational
opportunities, and an improved quality of life. However, this migration
has resulted in inequalities both economic and social terms between
Male‟ and the other atolls. Youth unemployment, increasing crime rate,
social disharmony and drug abuse are all outcomes of the highly
congested living conditions prevalent in Male‟ and some other islands.
The Maldivian age structure is very young with approximately 77% of
the population below the age of 40 years.
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4.1 LIFE CYCLE OF TOURISM
According to Butler (2006), tourist areas change steadily (figure4.1):
“The rates of growth and change may vary widely, but the final result will
be the same in almost all the cases.
Seven stages are depicted on the model. The first is the exploration stage,
when tourist numbers are small, visitation patterns irregular, and tourists
make individual travel arrangements to destinations where no special
facilities or services are provided for tourists. Contact with residents will
be high, contributing to enhanced attractiveness and more tourist visits.
Second is the involvement stage. Locals get involved in providing
services and facilities to tourists who by now have formed a regular
pattern of arrival. Promotions and marketing to attract more tourists are
carried out. A market and a tourist season are established and start to
take shape.
The hypothetical evolution of a tourist area
Source: Butler -2006
Source: Butler 2006
A
B
C
D E
Rejuvenation
Critical Range of
Elements of Capacity Stagnation
Exploration
Involvement
Decline Consolidation
Time
Nu
mb
er o
f T
ou
rist
s
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Third is the development stage, marked with a well-defined tourist
market due to the advertising in tourism-generating countries. Larger,
more modern facilities developed by foreign companies replace the basic
facilities that have been offered until now.
Natural and cultural attractions are built and promoted, making obvious
changes to the physical environment. Tourist arrivals may equal or
exceed local populations. As this stage progresses, expatriate labour will
have a strong hold on the destination‟s labour force.
Consolidation happens during the fourth stage. Tourism constitutes a
significant part of the economy but, starting from now, the number of
visitors will begin to decline. Stagnation is the fifth stage: tourist arrival
numbers have peaked and while the destination may have an established
image, it will be out-dated. Strong advertising will be required to fill the
over-capacity that has been created. The built environment does not
complement the natural environment.
The sixth stage is one of decline: the destination is not able to compete
with new competitors, and hence there is a decline in visitor numbers.
Many tourist facilities may convert to other facilities, such as permanent
tourist homes or function facilities.
At the seventh stage, rejuvenation may occur. This may happen by
adding man-made attractions or venturing into a new direction.
With regard to the stages that tourist destinations go through in the life
cycle, Butler (2006) cautioned.
The assumption that tourist areas will always remain tourist areas and be
attractive to tourists appears to be implicit in tourism planning. Public
and private agencies alike, rarely, if ever, refer to the anticipated life
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span of a tourist area or its attractions. Rather, because tourism has
shown an, as yet, unlimited potential for growth, despite economic
recessions, it is taken for granted that numbers of visitors will continue to
increase. The fallacy of this assumption can be seen in the experience of
older tourist areas, such as those of southern Ontario, over the past
two decades.
4.2 SMALL ISLAND DEVELOPING STATES (SIDS) AND
GLOBALIZATION
Many SIDS have demonstrated continued economic and social
development during the last thirty years, proving that small size does not
hinder sustained growth (Read, 2004). However, Read predicts that the
globalization process will make future growth more challenging for
SIDS: “Globalization represents a particularly significant threat to the
continued survival of many successful small island states as independent
entities given the greater susceptibility of their economies in the
international system”.
Tourism has particular significance for SIDS. The environmental and
cultural features with which they are endowed make SIDS primary
locations for tourism development (Giannoni & Maupertius, 2007).
Remoteness, a frequent feature of SIDS, is an advantage for tourism
because relative isolation can render the destination “more attractive,
exotic and enticing, especially in the case of small islands” (Scheyvens &
Momsen, 2008).
Hence, it is not surprising that in most SIDS tourism is the main
economic activity (Neto, 2003), bringing in most of their foreign currency
earnings (Ashe, 2005), in addition to being the largest source of
employment generation (Scheyvens & Momsen, 2008). However, in
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spite of these positive outcomes, the global tourism industry is also
believed to have negative impacts on SIDS. As Rosalie (2002) stated,
“Tourism in the developing world has both the potential to be an agent of
social and economic development ... or a source for friction and
alienation within the local community.”
A lack of resources often makes the natural environmental assets the only
means for economic development for SIDS (Ashe, 2005). But tourism
development in SIDS has a significant impact on the environment. When
tourism development is dependent on fragile ecosystems it causes
immense pressures on these resources (Neto, 2003). The extent of the
impact can be understood when the small land area and population of
most SIDS is weighed against annual tourist arrivals per year, which
often exceeds several times that of the total population (Scheyvens &
Momsen, 2008). In addition, SIDS are among the countries that are most
vulnerable to the threats of climate change such as rising sea levels,
saltwater intrusion, extremities in weather, loss of biodiversity and
damage to ecosystems (Quarless, 2007). Unfortunately, due to
limitations in human and financial capabilities, these countries are less
capable of protecting their natural heritage than their larger counterparts
(Rosalie, 2002).
4.3 TOURIST ARRIVAL TRENDS
Over the past few decades the Maldivian economy has become dependent
on the tourism industry. In 2011, the tourism sector accounted for nearly
34% of direct Gross Domestic Product (GDP) and almost 75% when
counting both direct and indirect. The disparity between direct and
indirect GDP illustrates that tourism is a cross-sectorial industry.
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Tourism serves as a link and stimulus to almost all other sectors of the
economy such as transport, construction, trade, and financial services.
The country‟s economic wellbeing has relied on the success of the
industry. When compared to other island nations of its size, the growth
trajectory of Maldives tourism has been a clear success story. When
tourism officially began in 1972 only 1,000 tourists arrived that year. By
2011, that number had grown to 930,000. By the end 2012, arrivals are
expected to exceed 1 million. Since its inclusion in international tourism
statistics, Maldives‟ share of tourists from around the world has grown
steadily from 0.02 percent in 1981 to 0.07 percent in 2009, an average 4.4
percent increase per year. Historically, Europeans have represented the
largest share of incoming arrivals to the country. This pattern is now
challenged by the increased growth of Chinese tourism. The
opportunities and challenges of this shift require thoughtful direction and
policy development.
Tourist arrivals to the Maldives have been increasing steadily at an
average of 10% per annum over the last ten years, except for the dramatic
decline in arrivals during the year 2005 due to the Asian tsunami
(December 2004) as presented in (table & Figure No. 4.1). The tsunami
caused the closure of a number of resorts and tourist arrivals declined by -
35.9% in 2005. The Maldives sustained significant economic losses from
the tsunami due to the economy‟s heavy reliance on tourism. However,
Maldives‟ tourism has shown remarkable recovery after the tsunami in
2006 the annual growth rate in tourist arrivals rose to 52.3%, with nearly
779651 visitors. The annual average occupancy rate has been 68.2%
from 2001 to 2010.
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A multitude of factors have contributed to the dramatic growth in the
Maldives tourism throughout the last 40 years. The Maldivian
Government outlined its approach to standardize tourism development in
the first tourism master plan drafted in 1982. Subsequent tourism master
plans have provided the industry with direction and focus as the country‟s
economy moved along to the distinction of middle-income country status
in 2011.
Considered a long-haul destination, the growth experienced by the
Maldives has not occurred without issues and impacts on the general
population. The inherent volatility of an economy primarily dependent
on tourism revenue compounds the effect of any decrease in tourist
arrivals. Since 2000, there have been two noticeable downturns. The
tsunami of 2004 and global financial crisis (GFC) of 2008 created a lag
effect in tourism for 2009. These have been the only significant
downturns experienced by the Maldives tourism industry since its
inception.
Table: 4.1 Tourist arrival: Annual growth rate (2000-2010)
Year Annual growth rate in (%)
2000-2001 -0.73
2001-2001 4.51
2002-2003 16.25
2003-2004 9.42
2004-2005 -35.89
2005-2006 52.26
2006-2007 12.28
2007-2008 1.05
2008-2009 -3.97
2009-2010 18.87
Source: Ministry of tourism
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Figure: 4.1
4.4 CURRENT GLOBAL TRENDS
Despite weak economic development in the western world over the past
four years, international tourism has continued to grow, fuelled by the
strong growth from China and other source countries whose economies
have fared well. In 2009, international tourist arrivals and international
tourism receipts fell between 4 and 5% over 2008 reaching 883million
arrivals and US$853billion respectively. Both 2010 and 2011, however,
saw good rates of growth (table 4.2) with arrivals rising by 6.6% and
5.0% in these years; and receipts in constant terms growing by 12.5% and
3% to exceed US$1trillion for the first time.
Table 4.2 International Tourist Arrivals and Receipts, (2009-2011)
Arrivals
2009 2010 2011
Millions % Change
over previous year
883 943 990
-4.2 +6.6 +5.0
Receipts %real change over
previous year
-4.7 12.5 3.0
Source UNWTO September 2012 Tourism Barometer
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4.5 RECEIVING AND GENERATING REGION
Europe remains both the largest receiving and generating region for
international tourism. The pattern is similar for both inbound and
generated arrivals since the bulk of international tourism takes place
within the region of the traveler. Hence Europe recorded 504 million
arrivals in 2011 while generating 517 million arrivals in other countries.
Countries in the Asia and Pacific region received 217 million arrivals
while generating almost the same volume of 215 million in other
countries.
Europe accounted for 53% (table.4.3) of all international tourist arrivals
in 2011 but this represents a fall of 5% over 2000. By contrast, countries
in the Asia and Pacific region increased their share of international tourist
arrivals over this period from 17% to 22%. The growth in international
tourist arrivals (Figure 4.2) generated by the different regions between
2005 and 2011shows that travelers from (map 4.1) the Middle East are
leading the way with an average annual rate of 8.1%, followed by Africa
at 7.2%, Asia and the Pacific at 5.9%, with the established generating
regions of the Americas at 2.9% and Europe at 1.9% lagging behind.
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Table 4.3 Regions as Recevires and Generators of International Tourism,
2011
Arrivals Received Arrivals Generated
mn % share %p.a growth,
2005-11
mn % share % p.a growth
2005-11
Europe 504 51 2.3 517 53 1.9
Asia/Pacific 217 22 5.9 215 22 5.9
Americas 157 16 2.7 162 17 2.9
M East 55 6 7.3 36 4 8.1
Africa 50 5 6.3 29 3 7.2
Not
specified
- - - 24 2 4.5
Total 983 100 3.5 983 100 3.5
Source: UNWTO
Map. 4.1 International tourist arrivals to Maldives
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Figure: 4.2:
Out of the leading arrivals, (Figure4.3) Italy ranked first with a share of
69.6% of the European market. The UK was the second largest (19.8%),
followed by Germany (11.8%) then France (7.2%). Switzerland, Russia,
and Austria all had much smaller shares (4.4%, 3.6%, and 2.3%
respectively). From Asia, Japan was the largest contributor with 6.6% of
market share, followed by China (4.4%). The market share of Africa was
0.7%, while the countries from the region of the Americas contributed
1.8% and from Oceania only 1.3%. The top ten markets for Maldives in
2006 are Italy (25%), United Kingdom (22%), Germany (15%), France
(9%), Japan (8%), China (5%), Switzerland (5%), Russia (5%), Korea
(3%), and Austria (3%).
Figure: 4.3
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4.6 COMPETITORS TO MALDIVES
It is clear that the appeal of its fundamental attraction of pristine tropical,
beach, and reef-surrounded islands offering relaxation, excellent marine
life, and water-based activities in high quality resorts remains very strong,
factors in attracting the tourists to Maldives.
The strength of demand for beach-based holidays in general and the style
of beach holiday offered in Maldives in particular is borne out by the
growth rates recorded in international tourist arrivals over the past two
years in other beach holiday destinations. Only the Caribbean islands are
growing below the rate of overall international tourism, reflecting the
apprehension felt by US travelers to the sustained period of slowing
economic growth.
The five destinations as identified in table 4.4 (Figure 4.4)shows the 2011
Maldives Visitor Survey as representing the main competition to
Maldives – Seychelles, Thailand, Mauritius, Indonesia, Fiji – each grew
at rates above the global average of 11% in the two year period 2009 –
2011, 2011. Only Thailand matched Maldives‟ aggregate 42% rise over
the two-year period 2009-2011. Within Thailand, the mass-market resort
area of Phuket recorded a 30% rise in international air arrivals in 2011
reaching a total of 2.2million; while Koh Samui which is adopting a
strategy of moving up market received 14% more international arrivals in
2011 exceeding a total of 800,000.
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Table 4.4 Competitors to Maldives
Destination % growth
2009/2010
% growth
2010/2011
Arrivals 2011
(„000)
Maldives 20.7 17.6 931
Seychelles 10.8 11.4 194
Mauritius 7.3 3.2 963
Thailand 12.6 19.8 19,230
Indonesia 9.2 10.7 7,650
-of which Bali 11.8 10.6 2,757
Fiji 16.5 6.8 675
Caribbean 2.2 4.4 20,903
World 5.0 6.6 990,200
Source: UNWTO
Figure 4.4
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4.7 GLOBAL COMPARISON-2005-2011
As a long haul destination from almost all its existing and potential major
markets (India being the exception), Maldives is sensitive to any
economic, political, natural and social disturbance that forces tourists to
look closer to home for their destinations or to forego travel. The pattern
of development of international tourist arrivals to Maldives reflects strong
growth in years when all things are normal in the international
marketplace (table 4.5 and Figure 4.5) with downturns (or at least stunted
growth) in response to negative events i.e. the tsunami‟s impact on its
performance in 2005, the percentage of change is 5.5% at the global and -
35.9% in Mad ivies. The spread of H1N1 in 2009 and the recent year‟s
global economic downturn, including the rise of oil prices has negative
impact on tourism at both global level and on Maldives with a fall of -
3.8% and 4% respectively. However, even when tourist arrivals decline,
the fall is not as great as experienced worldwide – with the exception of
the Asia region-specific consequence of the tsunami - and the bounce
back is generally much stronger than in most other parts of the globe.
The financial crisis that started in 2008 hit all destinations in the second
half of that year while the ongoing economic problems, especially in
Europe, are serving to keep international tourism growth (including to
Maldives) at a moderate level.
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Table: 4.5 Global comparisons -2005-2011
Year Global arrivals Maldives arrivals
mn % Change on
previous year
„000 % Change on previous year
2005 805 5.5 395 -35.9
2006 850 5.6 602 52.4
2007 904 6.4 676 12.3
2008 919 1.8 683 1.1
2009 885 -3.8 656 -4.0
2010 943 6.6 792 20.7
2011 990 6.6 792 20.7
2012 990 5.0 931 17.6
Source UNWTO AND Ministry of tourism art and culture
Figure 4.5
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4.8 TOURIST ARRIVALS BY GENDER
In 2011out of 791,917 tourists visited to Maldives, 393,207 male and
398,710 female visitors. Number of females visiting the Maldives is
slightly higher than males in all months of 2011 except June and
September which is slightly over edge. (Figure5.6)
Table:4. 6: Tourist arrivals by Gendar 2010
Months Male Female
Jan 33653 33825
Feb 37715 39348
Mar 36998 37977
Apr 30148 30594
May 29095 29229
Jun 22129 21921
Jul 28364 28868
Aug 32537 33778
Sep 31391 31133
Oct 37288 37419
Nov 36394 37318
Dec 36955 37300
Figure 4. 6:
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4.9 TOURIST ARRIVALS BY AGE GROUP
In terms of age groups of tourists who visited the Maldives during the
year 2011, 45% belonged to the age group of 45 to 64 years and 41%
were the economically active population between the ages of 25 to 44
years. Youngsters, between ages 15 to 24 and children both contributed a
total of 8% of the tourists who visited the Maldives during the year 2011
with 4% each. Percentage contribution of retired people (65 years of age
and above) was 6%.
Table 4.7 Tourist Arrivals by Age Group
Category Age Group Tourist Arrivals
Children 0-14 4%
Youngsters 15 -24 4%
Economically Active 25 -44 41%
Middle Aged 45 -64 45%
Retired above -65 6%
Figure 4.7:
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4.10 GROWTH OF ARRIVAL AND MARKET SHARE
At the end of 2011, with a market share of over 60%, Europe remained as
the leading market generator to the Maldives. This region recorded a
growth of 9.4% compared (table & Figure-4.8) with 2010 with a total of
505,421 tourist arrivals to the Maldives in 2011. Asia and the Pacific
region recorded the highest growth in arrivals with 52.9% compared to
2010. This region captured arrivals to Maldives in 2010. A considerable
market share of 52.9% with 250,638 tourists with a total of 18,601
tourists, Americas captured a market share of 2.3% in 2011. The region
was recorded to have a positive growth of 22.7% at the end of 2011
compared with2010. Brazil, Canada, and U.S.A from this region
registered positive growths of 35%, 25.4%and 21.7% respectively. The
U.S.A capturing a market share of 1.4% is considered as an emerging
market and one with potential to the Maldives. Middle East region is
captured a market share of 1.5% and registered a positive growth
of22.1% compared to a growth of 4.2% at the end of 2010. Arrivals from
Saudi Arabia and United Arab Emirates increased by 33.1% and 7.5%
respectively.
Unlike 2010, the African region has showed signs of improvement in
2011. Arrivals from the African region recorded a positive growth with
11.8% capturing a market share of 0.7%.
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Table 4.8 Growth of arrival and Market share
Continent Growth of arrivals Market Share
Europe 9.4 63.8
Asia & The Pacific 52.9 31.6
Africa 11.8 0.7
America 22.7 2.3
Middle East 22.1 1.5
Figure 4.8
Source: Ministry of Tourism arts and culture
4.11 PERFORMANCE OF MARKETS IN THE EUROPEAN
REGION
Most of the major markets from the European region performed with
positive growths for the year 2011. The British market, capturing the
second highest (Figure-4.9) market share with 14.4%, registered a
positive growth of 7.7% while the Italian market capturing the third
highest market share with 11.3%, performed with a positive growth of
0.3%. The German, French, Russian, and Swiss markets which are
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included in the top ten markets with the highest market share recorded a
growth of 11.6%, 8.8%, 22.7%, and 3.7% respectively. Markets which
recorded negative growth in this region include Portugal, Kazakhstan,
and Greece with -5.5%, -10.5% and -14.4% respectively.
Figure 4.9
Source: Ministry of Tourism arts and culture
4.12 PERFORMANCE OF MARKETS IN ASIA & THE PACIFIC
REGION
Asia & the Pacific region captured a market share of 31.6% remained as
the second (Figure 4.10) most tourist generating region to captured a
market share of the Maldives in 2011 whereas in the year 2010 this
region23.7%. With a total of 250,638 tourists, this is an impressive
growth of 52.9%. The positive growth registered from this region is
contributed by the robust increase from the Chinese market which is now
the market with the highest market share of15%. The Chinese market
recorded a growth of 96.1% compared to 2010. Other markets from Asia
which are included in the top ten markets include Japan, India and Korea
recording5.9%, 62.5% and 53.8% growth in arrivals respectively.
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Figure: 4.10
Source: Ministry of Tourism arts and culture
4.13 TOP TEN MARKETS 2011
The regional market trends have been defined by the decline in the
European markets and the rise of Asian ones, noted in the previous sub-
section. At the same time, the Americas region has been growing though
only in line with the overall pattern of tourism to Maldives, accounting
for between 2% and 3% of total arrivals. The Middle East region has
increased its market share from under 1% in 2007 to 1.6% in 2011, and
2.3% in the first nine months of 2012. The African region produces less
than 1% of arrivals in Maldives as a consequence of the lack of air access
following the termination of charter based inclusive tour programmes
from Johannesburg a decade ago when it is reported that as many as
10,000 South African tourists a year came to Maldives. Market trends are
outlined below for the leading individual source countries for Maldives:
1. China
2. UK
3. Germany
4. Italy
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5. Russian Federation
6. France
7. Japan
8. Switzerland
9. India
10. Korea Republic
Markets in the top four positions have changed compared to 2010. In
2011, the top most tourist generating market is China which was in 4th
position last year. Last year‟s number one market, United Kingdom, has
moved down one place to 2nd position. Likewise Italy and Germany
both have also moved down one place to 3rd and 4th position in 2011
respectively. India and Korea have switched places with each other to
9th and 10th positions compared to 2010. However markets such as
France, Russia, Japan, and Switzerland remained in the same positions as
2010 in 5th, 6th, 7th, and 8th positions respectively.
4.13.a .CHINA
Chinese arrivals to the Maldives have been growing rapidly over the last
five years at an average rate of 52.2%. With a total of 118,961 arrivals
and 15% of total shares, China became the number one market to the
Maldives in 2010. The market maintained its position in 2011 by further
increasing its shares to 21.3% with 198,655 arrivals that year. This huge
increase in Chinese arrivals to the Maldives mainly accounts for the
increased direct access between Maldives and China as well as the strong
demand for Maldives as a honeymoon destination among Chinese.
The liberalization of outbound travel and the strong economic growth in
China have led to a rapid increase in outbound tourism, resulting in it
becoming one of the largest sources markets for international tourism.
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According to the PATA Annual Tourism Monitor 2012, more than 58
million arrivals were generated from China to the Asia Pacific region in
2011; while the UNWTO forecasts that China will generate 100 million
travelers by 2020.
The recent (slight) slowdown in the growth of the Chinese economy is
having little effect on the Chinese outbound market. Data from the
Ministry of Public Security show that 38.6 million mainland Chinese
citizens traveled outside the country in the first six months of 2012, a near
20% rise on the corresponding period on 2011. According to a
September 2012 Huron Report and International Luxury Travel Market
Asia survey, the typical wealthy Chinese outbound traveler takes three
holidays a year. Though more seasoned Chinese travelers engage in
experience-based activities, shopping remains the top activity for
overseas travel. This is particularly so for the Chinese traveler to
Maldives, for some 60% of whom their visit to Maldives is their first
overseas trip.
Responding to the introduction of charter flights from six Chinese cities
and the strongly positive image of Maldives among Chinese consumers,
China has quadrupled its share of tourist arrivals in Maldives between
2007 and 2011 from 5% to over 21%. Its average annual growth rate of
almost 50% between 2006 and 2011 was remarkable and, even for China,
was greater than to most competing destinations e.g. Bali‟s growth from
China was 20% per year. Seasonal flows from China to Maldives are
heaviest in the July – October period, with a peak in February during the
Chinese New Year holidays. This partly counterbalances the European
seasonal pattern that shows highest demand in the European winter
months.
115
Figure:4.11
4.13 b UNITED KINGDOM
Although the UK market has traditionally been the largest source market
to the Asia Pacific region from Europe, an overall 1% decline was
recorded from this market for the region in 2011. According to the
PATA Annual Tourism Monitor 2012 early edition, during the year 2011
a total of 9.4 million visitors from UK traveled to the Asia Pacific region.
Out of these, 248,000 traveled to South Asia (excluding India and
Pakistan for which data were not available for the Monitor) and 104,508
to Maldives.
The economic problems of the past four years have changed purchasing
patterns of
Outbound long haul holidays. The increased emphasis on value-for-
money destinations and packages with all-inclusive holidays increasingly
preferred. The Travel and Tourism Intelligence Mintel Report anticipates
that British long haul travel will contract until 2015.
116
The United Kingdom is a well-established traditional market to the
Maldives, being the leading source market until 2010 when it was
overtaken by China. Demand has been inconsistent in recent years with
falls in arrivals recorded in 2008, 2009 and 2011, resulting in an average
annual decline between 2007 and 2011 of over 4%, resulting in a loss of
market share from 18.5% to 11.2%. Despite this decline it remains
Maldives‟ second largest source market with 104,508 arrivals in 2011,
though it is likely to be passed by Germany in 2012 based on first nine
months figures which show a drop in UK arrivals of 13.7% over the
corresponding period in 2011.
The seasonal pattern of arrivals shows peaks coinciding with the Easter
holiday period in March/April, and October (coinciding with half term
school breaks). However, demand is reasonably evenly spread across the
remainder of the year.
Figure: 4.12
4.13 c GERMANY
International visitor arrivals from Germany into the Asia Pacific region
increased by 2% in 2011 with a total of 4.9 million visits, as reported in
the PATA Annual Tourism Monitor 2012 early edition. According to the
117
Monitor, although South Asia (excluding India and Pakistan) was the
least visited sub region by Germans, it recorded the strongest gain of
+18%, receiving a total of 171,000 tourists from Germany during 2011,
with 91,000 visiting Maldives.
The About Tourism website indicates that Germans took 321 million
domestic and foreign trips in 2011, up 4% on the level in 2010, with
nights spent away also 4% higher at 1.6 billion. The holiday share, at
45%, similarly rose by 4%, with business (up 6%) and private trips(rising
3%) also growing.
Germany was the third largest market to the Maldives at the end of 2011,
with 90.517 arrivals, but will move into second position in 2012 if the
16.2% rise in arrivals during the period January-September 2012 is
maintained for the remainder of the year. Although Germany slipped a
little in terms of market share between 2007 and 2011, it has recovered to
10.4% over the first nine months of 2012.
Figure: 4.13
October to March (or April depending on the month in which Easter falls)
is the most visible peak season, while the lowest count in arrivals is
recorded in June.
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4.13 d ITALY
PATA Annual Tourism Monitor figures show that tourist arrivals from
the Italian market to Asia Pacific destinations declined by -1.04% in
2011. The South Asia sub-region (excluding India and Pakistan) attracted
just over 94,000 Italians, of which 83,000 visited Maldives.
Italians are credited for discovering Maldives as a tourist destination and
remained the leading source country up to 2007 when the UK became
larger. Over the last five years the Italian market has lost more than half
of its market shares from 17.3% in 2007 to 8.9% by the end of 2011,
during which period arrivals fell by an average of 8% a year. This decline
is understood to be as a result of a combination of Italy‟s economic
difficulties leading to the bankruptcy of major Italian tour operator sand
the upmarket move of resorts replacing club style resorts preferred by
Italians.
Italian arrivals start to increase from the month of November and increase
steadily through March. From April to July the market gradually slows
down, recording its lowest level of arrivals in June. After a sharp increase
in August, Italian arrivals again drop in September.
Figure: 4.14
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4.13 e RUSSIAN FEDERATION
The PATA Annual Tourism Monitor 2012 early edition reported that
arrivals from Russia to the Asia Pacific region increased by 19% reaching
4.5 million at the end of 2011. When looking at sub regional level data
collected by PATA for the Russian market, the strongest growth in
2011was recorded for the Southeast Asia region with 54%, followed by
South Asia (excluding India and Pakistan) with 34%. Total outbound
travel by Russians remains resilient despite the economic troubles in
Europe.
At the end of 2011, Russia was the 5th largest market to the Maldives.
The market performed extremely strongly over the last five years with an
average growth of 26%. The decline recorded for the year 2009 was due
to the overall decline in arrivals that year as a result of world economic
recession that started in late 2008. In 2011 with 63,936 arrivals, a strong
growth of 30% and a slight increase in market share, the Russian market
overtook France to become Maldives‟ fifth largest market, a position that
it consolidated during the first nine months of 2012 with arrivals up by
3.6%.
Russian tourism to Maldives peaks over the Christmas/New Year period
having built up steadily from October. The Easter period in March/April
also sees growth, while the period May-July is the low season for Russian
tourist arrivals in Maldives
120
Figure: 4.15
4.13.f.FRANCE
In 2011, arrivals from France into Asia Pacific destinations increased by
6% to reach a total volume of nearly 4.7 million, as reported in the PATA
Annual Tourism Monitor 2012 early edition. It records that South Asia
was the fastest growing sub-region for the French market in 2011, with a
total of 133,000 arrivals, an improvement of over 22% compared with
2010. Maldives attracted just fewer than 60,000 arrivals from France in
2011, a rise 9% compared with 2010.
The French market has seen steady growth over the last five years with an
average rise in arrivals in Maldives of 6.5%. While all other markets
registered negative growths during the world economic crisis in 2008 and
2009, the French market recorded positive growths of 6.2% and 4.7%
respectively in those years. From 2007 to 2009 the French market
increased its share of arrivals in Maldives. However, in 2010 and 2011
the market share declined from 7.7% in 2009 to 6.4% by the end of 2011,
as growth from other markets – most notably China – outran that from
France.
The French market for Maldives has a marked seasonal pattern with a
steady rise in demand from September leading to a peak in
121
February/March, after which there is a sharp fall with the period from
May to September when monthly arrivals are only 15 to 30% of the peak
month.
Figure: 4.16:
4.13. g .JAPAN
Outbound travel from Japan to Asia Pacific destinations posted a growth
of over 2% in 2011. According to the PATA Annual Tourism Monitor
2012 early edition, a total of over 17.4 million Japanese travelled to the
Asia Pacific region. The South Asia region (excluding India and
Pakistan), although recording the least in terms of volume of arrivals, was
the second best performing region in terms of its growth rate over 2010.
As per the Tourism Monitor, a total of 823,000 Japanese travelled to the
South Asia region in 2011.
The Ministry of Justice recorded a figure of just under 9 million Japanese
travelling overseas for the first six months of 2012, a rise of 17.5% over
the corresponding period in 2011, the highest level since 2000.
The Japanese market has played a major role in the development of
tourism in Maldives, being the leading Asian source market up to 2007.
122
The market has, however, fallen sharply since 2007, with a virtual
halving of market share from 6.1% in 2007 to 3.8% by end 2011. The
five year average growth rate of the market stood at -1.8%. In 2011, with
a total of 35,782 tourists Japan was the 7th largest market to the
Maldives.
In contrast to European markets, the second half of the year is the main
time for Japanese visitation to Maldives with the peak month being
September and the lowest May.
Figure: 4.17
4.13.h.SWITZERLAND
PATA data show that Asia Pacific destinations received a total of
332,997 tourists from Switzerland in 2011, a 5.8% increase compared
with the 314,786 Swiss that arrived to the area in 2010. The most
travelled sub-region in Asia Pacific by Swiss was South East Asia
covering over 58% of total arrivals to the PATA area that year. In 2011
South Asia (excluding India and Pakistan) received a 38,527 tourists from
Switzerland, which was 12.2% of total Swiss tourist arrivals in PATA
countries for that year.
123
In 2011 the Maldives received a total of 32,504 tourists from Switzerland,
which was an increase of 17.1% compared with the 27,766 arrivals in
2010. Tourist arrivals to the Maldives from Swiss market have been
increasing steadily over the last five years at an average rate of 4.6%. The
Swiss market share increased steadily from 2007 till end 2009. However,
in 2010, the Swiss market share fell from 4.1% to 3.5% following the
large percentage growth recorded from other markets, most notably
China. Switzerland‟s market share remained at 3.5%. At the end of 2011,
Switzerland was the 8th largest market to the Maldives.
Swiss travel to Maldives peaks in March/April and October/November,
while June and August have the lowest level of Swiss arrivals.
Figure: 4.18
4.13.i.India
Figure: 4.19:
124
According to the PATA Annual Tourism Monitor 2012 early edition,
India generated close to 5.4 million arrivals to Asia Pacific destinations in
2011, an increase of 7.3% over 2010. Although in terms of volume,
South East Asia destinations captured most of the arrivals from India to
the Asia Pacific area, South Asia recorded the highest growth rate for the
Indian market over 2010.Indian agents report that luxury travel by
Indians continues to rise despite the recent slowdown in the country‟s
economic growth and the weaker rupee.
The Indian market to the Maldives has been growing at above average
growth rates of 23.5% over the last five years. In 2011, Maldives received
a total of 32,504 tourists from India, which was an increase of 20.3%
compared with 2010. Market share remained at 3.3%. Being a
neighboring country and having relatively easy access, India remains to
be a potential tourist market to the Maldives.
The final months of the year and May are the main periods for Indian
travel to Maldives.
4.13.j.KOREA REPUBLIC
Figure: 4.20
125
The Republic of Korea generated nearly 13 million tourists into Asia
Pacific destinations in 2011, according to the PATA Annual Tourism
Monitor 2012 early edition. Arrivals from the Korean market across all
Asia Pacific destinations increased by less than 1% in 2011.Koreans‟
outbound travel increased from 6.1 million trips in 2000 to 14 million in
2011. Steady growth is anticipated in response to increasing numbers of
low cost carrier routes to South East Asian destinations, the strength of
the won against the US dollar, and solid economic growth of the order of
4% a year.
Maldives received a total of 25,285 tourists from Korea in 2011, 1.9%
more than in 2010. Over the last five years, from 2007 to 2011, the
market grew at an average annual rate of 12.5%, with market share
staying around 3%.
4.13.k.Total Tourist arrivals
Table: 4. 9: Total Tourist Arrival 2006-2010
Months 2006 2007 2008 2009 2010
January 58332 64570 64621 61531 67478
February 54741 65224 67963 58520 77063
March 54596 64491 71623 62127 74975
April 55983 63171 62670 57186 60742
May 40961 46602 48764 43154 58321
June 33037 38457 40283 36205 44050
July 42776 51025 47675 44332 57232
August 49968 53168 51824 52388 66315
September 44593 48468 50687 50396 62524
October 54721 58706 56363 62432 74707
November 43594 56797 57961 61986 74252
December 58621 65210 62578 65595 74225
126
Figure: 4.21
The Figure 4.22 shows that month wise tourist flow to Maldives from
2006 to 2010. Except in the year 2009 in rest of the year the flow is
having an up ward trend. It is clear from the Figure that from January to
March the flow to Maldives is high and starts decreasing from April to
June then on awards increases up to the month of August again a fall in
September rises till the end of December. The tourist flow is high from
October to March except a fall in the month January in all the years.
4.14 PURPOSE OF VISIT
Information on tourist purpose on which a broad segmentation
breakdown of Maldives‟ tourists can be made is contained in the Tourist
Profile and Opinion surveys.
Details of the three most recent such surveys are as follows:
2004: Conducted in October, 3,241 completed questionnaires of which
82% were from European tourists and 16% from Asia/Pacific tourists.
NB this over-represents Europe and under-represents Asia/Pacific in
respect of total tourist arrivals in the year of 73% and 25% respectively.
127
2008: Conducted in December, 776 completed questionnaires of which
88% were in the languages of the main European markets (English,
Italian, German and French) and 12% in the languages of the two
principal Asian markets (Japanese, Chinese).NB: this assumes that
tourists for whom their first language is not one of the six featured will
either have sufficient comprehension to complete the questionnaire or are
not covered in the survey.
2011: Conducted in April, with 3,548 questionnaires completed in
sufficient detail to be entered into the analysis. Of these, 76% were in the
languages of five major European markets (English, Italian, German,
French and Russian, though only 35 questionnaires from
Russians were entered, just 1% of the sample as against 7% of total
arrivals in Maldives in 2011), and 23% in the languages of the two
principal Asian markets (China, Japan). Again, this results in non-
speakers of one of these seven languages being excluded or completing
the forms in a second language.
The fact that the surveys were conducted at different times of the year
when seasonal patterns vary between the different source markets, and
the profile of tourist can differ (e.g. in respect of periods when
honeymoons or family holidays are taken, suitable months for diving)
raises the issue of the comparability of the three surveys. The findings in
respect of purpose of visit and motivations for choosing Maldives have
been used to develop a broad segmentation analysis and trends have been
identified through comparison of the three surveys. However, it should be
stressed that this analysis should be seen as indicative rather than as a
precise breakdown of the tourist markets to Maldives.
128
As table 4.10 and Figure 4.23 shows, the main reasons 90% and more of
that tourists come to the Maldives are for leisure, honeymoon, and diving
the rest is less than 10%. The majority of tourists (53% 55% 64%) seek
leisure and relaxation, but with its strong appeal as a romantic
destination, the „honeymooner‟s‟ category (30% 28% 20%) is also
significant. The underwater beauty of the islands also attracts divers;
they make up 15%, 11% and 10% of all visitors in the three interval of
2004, 2008 and 2011 survey. It is interesting to note that in the entire
three intervals the percentage of relaxation has increased but the
honeymoon and driving percentage has decreased.
Though the wording of the different surveys changes - i.e. from „leisure,
relaxation, holiday‟ in 2004, to „relaxation‟ in 2008 and to „holiday‟ in
2011 – it is clear that relaxation (to use a collective term encompassing
all these terms) is the predominant purpose of visit to Maldives. The
essence of a relaxation visit is a combination of the peace and beauty of
the setting, quality facilities and service and the chance to engage in
water-based activities of a „soft‟ nature. Furthermore, demand for this
type of holiday appears to be growing, according to the survey results.
Table 4.10: Purpose of visit to Maldives, 2004, 2008,& 2011 (%)
Purpose of visit 2004 2008 2011
Relaxation * 53 55 64
Honeymoon 30 28 20
Diving 15 11 10
Business 1 3 2
Others * 2 2 4
Total 100 100 100
Source 2004, 2008 and 2011 tourist opinion surveys
129
Figure 4.22
Honeymoon trips – which place a high value on the same attributes as the
relaxation holidays – have shown a decline in market share over the
course of the three surveys though for the Chinese market this is still the
single main purpose of visit and enquiries among European tour operators
suggest that as the economic situation in the region improves this
category of travel will strengthen again. Though the strict comparison of
the three surveys shows diving to be losing market share, this is
principally because the fast growth Chinese market has only a very small
specialist diving segment, serving to pull down the overall percentage of
divers among total arrivals.
130
Table.4.11 Purpose of visit to Maldives, by source market, 2008& 2011
Market
Relaxation Honeymoon Diving Business Others
2008 2011 2008 2011 2008 2011 2008 2011 2008 2011
EUROPEANS 64 78 19 8 15 12 1 1 1 2
Of which
UK 64 80 22 11 9 6 1 1 4 3
Germany 70 81 2 7 25 11 2 0 1 1
France 59 72 21 11 20 15 0 1 1 2
Italy 66 83 28 3 6 11 0 1 0 2
Switzerland 64 76 0 4 36 21 0 0 0 0
OTHERS 59 74 29 9 8 12 0 1 4 4
Of which
China 37 41 56 43 2 4 8 6 4 6
India 15 41 70 15 0 3 10 28 5 13
Japan 36 38 58 50 4 0 2 1 0 11
OTHERS 23 41 47 35 4 9 17 7 9 8
Americans 56 59 16 18 20 15 0 4 8 4
Australians 11 54 68 30 5 1 11 1 5 14
Total 55 64 28 20 11 10 3 2 2 4
Source: Calculations based on 2008 and 2011 Tourist Opinion Surveys
In volume terms, the levels of all purpose-of-visit categories have
increased between 2008 and 2011, (table 4.11) with the most marked rise
(58%) being in those seeking a relaxing break in Maldives. There were
100,000 more relaxation category Asian tourists in 2011 than in 2008,
with a fivefold rise in Chinese relaxation tourists, up from 16,000 to
82,000. The volume of Chinese honeymooners is even greater at 99,000
in 2011, with a similar rate of growth over 2008. The growth in other
categories of tourists and from markets other than China is more modest.
131
Drilling down the survey findings by major origin markets the significant
facts and variations to emerge are as follows:
Holidays for pure relaxation are dominant in all European markets;
Honeymoon trips are the main purpose of visit for the Chinese but
have lost ground in European markets as a consequence of the
economic downturn since 2008 – this is particularly noticeable in
Italy. (The large number of Indian honeymooners in the 2008
survey was a result of the timing of the survey during the
traditional Indian wedding season between November and March);
Diving holidays remain strong among several European markets
and for Americans;
Asians – especially Indians – are the main business travellers to
Maldives.
4.15 AGE GROUPS
The 25-34 age group accounts for the majority 56% of Asian tourists with
a further 24% in the 35-44 age band. By contrast, there is a wider spread
among Europeans with one quarter each in the three age categories 25-34,
35-44, and 45-54. Around one fifth of Europeans and Americans are aged
over 55, whereas for Asians the corresponding proportion is just 3%.
Travel trade research suggests, however, that this pattern may be
changing for Asians, particularly the Chinese. It is becoming a custom for
the younger Chinese who have benefited from the strong economic
growth in the country to take their parents and, even, grandparents on
holidays overseas, as a mark of gratitude and respect for them. This
represents an opportunity for Maldives but heightens the need for Chinese
speaking staff and food with which the older generation Chinese may be
familiar.
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4.16 ARRIVALS TARGETS BY SOURCE MARKET REGION
Given implementation of the strategies proposed in 4MTP, including
ensuring sufficient supply of mid range resorts to attract European
charters to both Male and Gan; no political problems, tsunamis or similar;
realization of Mega Maldives route expansion plans; and sustained,
effective and fully integrated (public and private sector) future tourism
marketing and promotion, further growth at the rate of 9.5% a year can be
targeted between 2016 and 2021, (table 5.8) reaching a level of 2.5
million arrivals by 2021. Tourists from the Asia and Pacific region will
account for 56% of all arrivals by 2021 at 1.4 million, having risen by
12.5% a year over the five year period. The number of European arrivals
will approach the 1 million mark by the end of the period, having grown
by 5.5% a year. Significant growth can be anticipated from the Middle
East and Africa regions.
Table: 4.12 Target of tourist arrivals, 2016 & 2021
Source
Market
% p.a.
growth
2006-2011
2011
Arrivals
(‟000)
% p.a.
growth
2011-2016
2016
Arrivals
(‟000)
% p.a.
growth
2016-2021
2021
Arrivals
(‟000)
Europe 3.3 538 4-7 703 5-8 963
Asia &
Pacific
22.5 349 15-20 782 10-15 1,409
Americans 17.0 24 8-12 39 8-12 62
Middle
East
27.2 15 10-15 27 10-15 49
Africa 9.2 6 8-12 10 10-15 17
Total 9.1 931 10-12 1561 8-11 2500
In dividing the total tourist flows from the main tourist source regions
into segments, the 4TMP planning team has been guided by the visitor
opinion surveys and feedback from the Maldives industry and advice
from leaders in the tourist distribution trade in Europe and Asia.
133
4.17 PHASES OF TOURISM DEVELOPMENT
Tourists first started coming to the Maldives in significant numbers in
1972 when the first resort, with a 280-bed capacity, was established. In
the years since, five phases can be identified in the development of the
Maldivian tourism industry (MTCA, 2008a).
The first phase is considered to be from 1972 to 1978, when tourism was
largely unplanned and took place according to individual initiative
(Dowling, 2000). The 17 resorts with 1300 beds that were established
during this time (MTCA, 2008a) were very simple in facilities and
modest in services due to a lack of resources and trained personnel in the
field. Speed boats and mechanized fishing boats were used to transfer
passengers and cargo between the airport, Male‟ and different resort
islands. Thus all resort development was concentrated in close physical
proximity to the only international airport, i.e. near the capital island of
Male‟. This has resulted in over 47 percent of the resorts being located in
the central region of the country (MTCA, 2008a). During this initial
phase, tourism did not play a significant role in the economy (Domroes,
2001).
The second phase covers the years 1979 to 1988. With the opening of a
further 41 resorts, this period witnessed the establishment of a large
number of resorts within a short period of time. The creation of a wide
network of air services through charter carriers with various promotional
packages, as well as the increased capacity of resorts, fuelled
development of tourism in a short span of time It was during this period
that foreign companies began to invest in the Maldivian tourism industry.
By the end of 2006, out of the 89 resorts operating in the Maldives, 68
were leased to local parties, 14 resorts were leased to joint-venture
134
companies and the remaining seven islands were leased to foreign
companies. Only 47% of the resorts are operated by local parties, with the
rest being operated by foreign companies or foreign shareholding
companies (MTCA, 2007a).
An important highlight of the second phase of tourism development was
The First Tourism Master Plan (FTMP) which was formulated in 1983.
The FTMP laid the foundation for sustainable development of tourism,
emphasized environmental protection and called for integration of
tourism into the social and economic development of the country. Resorts
developed during the final years of the second phase followed the FTMP.
Policies set out in the FTMP that limit built-up space on resorts, require
building heights to be compatible with the natural vegetation of the
islands, and include measures for environment and reef protection are still
adhered to in resort development. Rules introduced during this phase also
set the guidelines for the quality of services and facilities provided to
tourists. A regulation instigated under the FTMP stated that the built-up
area on tourist resorts should not exceed 20% of the total land area of the
island. This regulation contributed to the creation of peaceful and quiet
environments on resort islands – now a key feature of Maldives‟ tourism.
The third phase of tourism development, from 1989 to 1997, saw the
opening of 16 additional resorts with a further bed capacity of 4920. The
positive impacts of the vast developments in transport and technology
experienced in the Maldives, and the world over, during the early 1990s
were reflected in tourism development during this period.
Thus, apart from growth and expansion of resorts, this was the phase
when innovative and high-quality services were introduced to tourism
development. The Faculty of Hospitality and due to the fast rate that
135
tourism developed, and with a shortage of local skilled labour, local
manpower alone was unable to cater for the demand for jobs created by
the tourism industry. As a result, during this phase a large number of
expatriates joined the industry. By the end of 2006, out of the 22,000 jobs
in the tourism sector (MTCA, 2008b) 11,095 jobs were filled by
expatriates (MPND, 2007a). This was in spite of a government regulation
that states that the employment of expatriates in tourist resorts should not
exceed more than 50% of the total employees.
The period from 1998 to 2001 was the fourth phase of tourism
development in the Maldives. Tourism development during this period
came under the Second Tourism Master Plan (STMP) which covers the
years from 1996 to 2005. A key feature of the STMP was the plan to
expand and develop tourism into more regions across the country, with
the aim of decentralizing tourism from Male‟ atoll and spreading the
benefits of tourism among all the atolls, particularly the southern and
northern regions, In addition, reducing expatriate labour and increasing
the participation of women in the tourism labour force were also key
targets. With regard to women‟s role in tourism, there is a huge gender
disparity in employment. Only 1512 women were working in the industry
in 2006 compared with 10,578 men (MTCA, 2007a). Cultural and social
norms play a major role in this imbalance. The isolated nature of resorts
and the nonavailability of the option of commuting to work daily from the
inhabited islands are contributing factors that discourage women from
working in resorts. A seminar on the Management of Human Resources
in the Tourism Industry notes: It was generally agreed that hiring women
to work at resorts proved difficult due to security concerns and attitudes
of parents who do not want their children to be employed at resorts,
which are perceived as predominantly male working environment
136
(MTCA, 2008b). It was during this phase that international resort brands
began to establish themselves in the Maldives. While spa resorts were
launched with the aim of introducing higher quality tourism, a wide range
of accommodations were also introduced in order to attract tourists from
various market segments. As such, apart from resorts, hotels, guest
houses, yachts and safari boats began their operations. With resorts
opening in areas far from Male‟ International Airport, seaplanes were
introduced in place of speedboats to transfer tourists from the airport to
resorts. During the fifth phase of tourism development, which extends
from 2002 to 2008, the Third Tourism Master Plan 2007–2011 (TTMP)
was launched in 2007. Its key aim is “taking tourism to the people within
the broader framework of sustainable development in the economic,
environmental, and social spectra” (MTCA, 2007).
During this period, islands throughout the country were released for
tourism development. Islands and plots for tourism development are
leased from the government on fixed-term contracts under a competitive
bidding process in 2006, 35 islands were designated for tourism
development. This latest release of sites included plots of land for city
hotel development on inhabited islands. This was a new initiative
because, until then, tourist development had strictly followed the one-
island-one-resort concept which was aimed at limiting potential negative
social impacts from tourism, a policy which has created the “distinctive
concept of „Resort Islands‟ (Domroes, 2001, p. 123) in the Maldives.
Each resort island provides its own infrastructure, power, water supply,
sewerage and rubbish disposal arrangements (Dowling, 2000).
Government regulation dictates that for waste management, each resort
must have incinerators, compactors and bottle crushers (Domroes, 2001).
137
For the first time a public company was formed within the tourism
industry to give locals a share in the tourism industry. Maldives Tourism
Development Corporation (MTDC) holds 45% government share and
55% public share. By the end of 2007, there were 89 resorts with a bed
capacity of 17,802. In addition, safari vessels, hotels and guest houses
provide lodgings facilities totalling 235 tourist establishments with a bed
capacity of 20,505 (MTCA, 2007a). Hotels and guest houses cater the
needs of tourists, business and domestic travellers. These facilities
provide convenient accommodation for tourists who transit in Male‟
before or after their stay in the resorts or safari vessels. Tourism has
become the largest economic industry in the Maldives, providing 22,000
jobs (ibid) and contributing 30% of government revenue, 30% of GDP
and 70% of foreign exchange (MMA, 2008).
Today, the Maldives is a world-renowned tourist destination, with several
international brand names in its tourism portfolio, and it continues to win
numerous international tourism awards (www.visitmaldives.com). Most
of the resorts in the Maldives are capable of providing state-of-the-art
facilities and services, entertainment and high-tech telecommunication
services (Dowling, 2000). Over-water bungalows built on stilts in the
shallow lagoons surrounding the resort islands and spas are a popular
theme of recent years. In addition, some resorts boast underwater spas
and restaurants (MTCA, 2008a). At present each resort has its own fleet
of speed launches providing fast and convenient travel. There are three
airports serving inter-atoll domestic flights in addition to seaplane
operators. In 2008, Gan International Airport commenced operations as a
second international airport bringing tourists directly to the southern part
of the Maldives. By the summer of 2007, 14 charter and 15 scheduled
international airlines were operating flights to the Maldives from different
138
destinations in Europe, Asia and Africa (MTCA, 2007b), Created the
“distinctive concept of „Resort Islands”‟ (Domroes, 2001, p. 123) in the
Maldives. Each resort island provides its own infrastructure, power, water
supply, sewerage and rubbish disposal arrangements (Dowling, 2000).
Government regulation dictates that for waste management, each resort
must have incinerators, compactors and bottle crushers (Domroes, 2001).
As tourism became established in the Maldives, it played a major role in
the country‟s economic and infrastructure development, especially the
establishment of transportation links between the atolls and islands and
the development of regional airports. Tourism has contributed both direct
and indirect benefits. Among the direct benefits are increased
employment opportunities and tourism-related construction. There are
also a number of indirect benefits, though to a lesser degree, through
increased activity in other economic sectors such as telecommunications,
transportation and the revival of the handicrafts industry.
Due to the scarcity of resources, all major goods for developing and
maintaining tourism services and facilities are imported, including
building materials and equipment for the construction of tourist hotels
and resorts. Hence, tourism does not generate a high overall multiplier
effect instead, the high rate of imports, the large number of expatriates
employed in tourism industry, and the prominent role that foreign
investors play in the ownership, management and operation of tour
companies are all factors that cause leakage of a major portion of tourism
revenue earned by the Maldives. “This means that eighty cents of every
dollar spent on tourist inputs accrued to foreign companies” The TTMP‟s
emphasis on increasing linkages between tourism and other supporting
sectors, namely fisheries, agriculture and handicrafts, was a strategy to
reduce these leakages of tourism revenue.
139
As acknowledged by the TTMP, in spite of having a rich culture, heritage
and history, “cultural and heritage tourism has not taken root in the
Maldives”, hence it is argued that these forms of tourism should be
promoted along with the key attractions of sun, sand and sea (MTCA,
2007c, p. 58). Maldives‟ tourism is dependent on the tropical beauty of
the islands. The wealth of underwater coral gardens, white sandy beaches,
crystal clear lagoons, underwater flora and fauna is the nucleus of the
tourism resource (Domroes, 2001). All tourist experiences offered by
tourism operators to various market segments are based on the identity of
a tropical island destination.
Usual tourist activities in the Maldives include water sports such as
diving, snorkelling, windsurfing, catamaran sailing, water skiing and
surfing. In addition to these, resorts organize fishing, excursion trips to
nearby inhabited and uninhabited islands and to the capital island „Male‟
by modern speedboats or traditional fishing boats. Night fishing is a
particularly popular activity – the trips usually end with a barbecue at the
resort with the day‟s catch. Aerial excursions by seaplane and submarine
diving are also provided by some resorts. Most resorts and hotels have
facilities for a variety of indoor and outdoor sports such as tennis,
football, volleyball, badminton and squash. Live entertainment
programmes are held in the evenings, often with local bands and dance
troupes. As a diversification strategy, forms of tourism that portray “a
strong identity of a perfect island destination” were proposed in the
TTMP (MTCA, 2007c, p. 50). As such, Eco Tourism Resorts, Health
Resorts, Luxury Islands, Floating Resorts, Budget Resorts, Live-aboard,
Luxury Yachts and Training Resorts were identified as potential
diversifications. All marketing communications for these products are
proposed to be “designed to retain the unique image and brand of the
140
Maldives” (ibid). While tourism has helped upgrade the general standard
of living, (Yahya et al. (2005)) believe that the concentration of tourism
development close to the capital Male‟ has contributed to creating income
disparities between Male‟ and the other atolls. The proposition of the
TTMP to promote community-based tourism was aimed at increasing the
benefits of tourism to local communities as well as being an avenue for
promoting culture and protecting heritage. While there is a high degree of
economic dependence on the natural environment through tourism, as
Dowling (2000) warned, “Environmental problems faced by Maldives,
are threatening the sustainability of the industry”. A major issue is solid
waste disposal, the methods for which are incineration or dumping into
the sea. With the annual average number of tourist arrivals exceeding that
of the total population (MTCA, 2007b) and all requirements for tourist
industry catered for by imports, including “thousands of tons of meat,
vegetables and diesel oil every year”, the amount of waste produced is
“unsustainable” from the resorts alone, 16.5 kg of waste per visitors is
produced every week (Dowling, 2000).
The Maldives islands are low and flat, with elevations less than two
meters above sea level. Thus, these islands are extremely vulnerable to
elevated sea levels caused by climate change. Domroes (2001) pointed
out that the environmental volatility of the Maldives archipelago is
camouflaged by the detrimental impacts of tourism. Already the Maldives
suffers from inundation and shoreline erosion, which are believed to be
consequences of global warming and greenhouse gas emission (Gayoom,
1998). A dire prospect repeatedly proclaimed by environmentalists is that
low-lying small islands such as the “Maldives archipelago will most
likely disappear under the ocean” (Conrady & Bakan, 2008, p. 32).
However, more recently, it has been announced that the question of
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Maldives going under the sea is overstated, because it has been
established that islands can adjust to environmental changes such as
rising sea levels and increased global temperatures (MSNBC, 2009).
Global warming threatens coral reefs – the key attraction of the Maldives
– as these natural attractions are sensitive to increases in temperatures.