EM ES & Beyond

Over the years tourism surpasses the rest and became the most income earner for this tiny nation. Tourism, with its multiplier effect within the economy undoubtedly is the blue-chip industry in this island nation. Tourism activities have been concentrated mainly to the central atolls till the government completely changed its attitude by spreading it to the entire country in recent times. Critics argue that this move by the government is politically motivated and the move is without proper planning and wisdom. It is questionable whether this radical expansion could end up loosing its position and faith in the traditional markets. It is evident that supporting infrastructure has not been given much emphasis and such a paradigm shift in future will create more bottle-necks if perceived in an operational context.

In 2004, Maldives celebrated its 600000th visitor for the first time in the history. And this unique destination holds its reputation for being a nation that promotes its values on sustainable tourism development practices. The “one island one resort” concept has been a unique business model and many consider this as a good example of avoiding any mass that may spoil the premium label the country has achieved. However, with the current expansion policy in taking tourism to the doorsteps of communities by developing hotels and resorts in inhabited islands could as many argue, imperil the values of the inhabitants.

Maldives comprised more than 1200 Islands and only about 200 Islands are inhabited. The rest of the islands despite few already been developed as tourist resorts are still untouched. There are fewIslands leased for different projects including fisheries.
By creating Maldives Tourism Development Corporation (MTDC) for tourism development across the country, government decided to develop Herathera in Addu Atoll as a resort and this move was the beginning of a new era of lodging tourists in inhabited Islands. Lately this concept was excelled by leasing land to develop hotels in islands where domestic airports are developed. Considering this expansion policy government estimates the national arrivals to cross 1 million arrivals by 2012 with a carrying capacity of 36,659 beds. Experts believe this expansion still manageable if proper infrastructure is developed at the same pace. As it stands now, the country’s international airport has got only one runway with limited aprons. With the empowerment and limiting the trade barriers in tourism, the country now experience more boutique and up-scale properties resulting niche traveler who waste no time in traveling in scheduled airlines or in charter flights. This has created a new route for private jets and it has been a concern of such travelers of not getting the parking areas for such private aircrafts. There have been few embarrassments already due to lack of knowledge and no-how to deal with high-end travelers. There was even a civil unrest lately as the news broke about one of the up-scale resorts themed a temple with a large statue that symbolizes Buddhist worship. Many believe such incidents a failure of governing authorities by not giving seriousness in enriching the soft-elements that should be equally considered in an expansion. Thus split opinions among various commentators and in the public are now been surfaced whether the tourism activities in the country or the development and expansion patterns are at all a feasible?

The United Nations World Tourism Organization defines sustainable development of tourism as “…Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations, including mass and the various niche tourism segments. Sustainability principles refer to the environmental, economic and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long term sustainability” (WTO, 2004).

Under these principles, giving optimal care in dealing with the delicate ecological process and maintaining the natural heritage and biodiversity is absolutely essential. In fact for a tiny island nation where most islands a not more than a meter above the sea level pauses even greater challenges. Several destinations undermine the ecological concerns in the tourism development activities and there are mix arguments whether such activities are symptoms of hijacking the green credentials what the destination boasts. Such activities are often referred as mass tourism behind a green mask. However, some believes that

Maldives could not fit into this context as government imposes strict regulations to safeguard the environment. Others argue that such rules are not been implemented and imposed soundly resulting several harms to the extremely delicate eco-system in the country. By law each resort should have an incinerator but the question is how effective are they in dealing with waste? To-date several resorts in the country do not have a sound mechanism to deal with waste resulting garbage floating over the beautiful lagoons. If not for the resorts even the island communities do not have any possible mechanism to tackle this issue. Therefore it has also been a concern of many resorts that several islands surrounded by them dump waste in the water or leave such materials openly in and around the lagoon or beach. Apart from waste been floating on the water, many tourists have seen them carelessly dumped onIsland beaches when they visit those islands in their island hopping trips.

The other integral part under sustainable tourism development is protecting the cultural heritage and social values by promoting tolerance and social harmony while carrying out different activities. The UNWTO’s general assembly held in Istanbul in 1997 adopted the so-called “Global Code of Ethics for Tourism” and under “sustainable” definition it is an obligation of the host nations to protect the cultural heritage and promote social harmony.

Maldives is probably one of very few countries that have an identity of 100% Muslim inhabitants living. The recently emerged political pluralism in the country and increasing pace of globalization creates waves of change not only in life style but how people perceive things. The need to maintain a proper balance between Radicalism and tolerance is even greater at a time where political stability is questionable. Religious extremism should be taken seriously as the country is divided into divisions with regard to different issues especially when it comes to combine tourism in a sensitive local setting. People may not combine both as they mix tuna and French fries or fish and chips. Therefore operating resorts and hotels in inhabited islands may put the peaceful tourist practices the country used to enjoy over the years. Even if not, in the view of most people why should government loose this beautiful “one island one resort” concept whilst the country is having thousands of lagoons and hundreds of uninhabited islands. This is a nation of creative people thus we should not limit the options or take politically motivated decisions in economic developments. Especially when handling the so-called golden eggs as we refer to tourism in this country. The nature of tourism is often sensitive to global events and incidents. Although there is a great deal of resilience in tourism, travelers are safety conscious more than ever, especially in the post 9/11 world we live. Thus responsible tourism practices are absolutely vital in managing the destination.

One of the key dimensions of sustainable tourism development is the socio-economic impacts for the host nations. This requires strong political will, involvement of every stakeholder and equal benefit disbursements. This “fair Play” rule should be well practiced than opening ways for unhealthy dominance. Some of the concerns involve social enrichments, employment opportunities, developing human resources and contributing to poverty alleviation. Lack of investment finance causes several projects to sublease the management and it has been a trend in the industry to borrow funds through major tour operators leading to sell products undervalue. This trend was more evident in the past than in present times. Uncontrolled lease rents create unhealthy competition to win islands in disproportionate rates that has almost reached its limits. This practice causes bid winners to either sell it or affiliate with up-scale hotel brands therefore airline operators are skeptical whether Maldives loosing its charter market by reducing the middle class. On the other hand huge economic leakage has always been a challenge for various reasons. Many believe, if government impose proper taxation models or implement brand royalty that is more economically beneficial to all stakeholders than it is in practice right now cold minimize such losses.

Development of HR was not given enough seriousness to-date as it has become a topic that is debated and discussed than any sort of reality in its own development. An integral component such as HR has still believed a cost rather than one of the very few components that can make a difference in tourism and hospitality industry. Uneven pay structures among foreign and local employees remain unchanged and neglected. Despite government’s regulation to have 55% locals in resorts, critics believe that the issue is mostly hijacked through various sources within the government and private sector and neglected when it comes to practice. Resort owners and government bodies do not give much emphasis on understanding the route causes of the issue and the topic is mostly dealt in blind. Although average per capita house hold income rose in atolls by 50% within the period 1997-2004, in Male’ they almost doubled (Vulnerability and poverty assessment – 2004). Such a disparity forces islanders to migrate to enjoy social benefits to the capital city and such a movement not only open ways for sky-high land rents but displacement among families that ultimately leads to undermine most needed kinship and family ties. A UNDP report published in 2003 indicates that nearly 15% of the country’s population lives in an income of less than RF7.5 per day. 28% of the atoll population gets less than an hours of electricity per day, 40% lives on islands without a health center, hospital or private clinic while 12% of the population has no access to safe water. The report further highlights that the benefits of growth are uneven in the country. While Male’ the capital city has gained the most from the rapid expansion in economic and social opportunities, the quality of life in Male’ is constrained by severe shortage of physical space, overcrowding, congestion and pollution.

Juvenile Crimes, increased over the years although no evidence linking such crimes with tourism, one could argue such issues are perhaps results of undermining social harmony and economic deprivation among the communities. Thus tourism being the key economic contributor and the fact that Maldivian government boasts the achievements on sustainable development; people have all the right to link such misshapes to biasness in benefit disbursements. As a result of focusing every economic activity in and around the capital city caused one third of the entire population living in a 4 squire kilometer island, called Male’. The UNDP report further reveals that most of the drug users (77%) identified are from the capital city itself. When government projects million arrivals by 2012, the bed capacity will increase to nearly 36500 beds. Based on the past experience and current trends and demand for peaceful holidays in the Maldives, even if the bed occupancy level reaches to 75% annual, the tourism sector revenue on rooms alone will sum up to close to or more than 1 billion US dollars a year. Import duties and extra revenue such as diving, water sports, restaurants spas etc are additional sources to earn revenue. If government do not revise tourism law to achieve a more equitable tax regime and implement solid mechanisms to manage brand royalty and develop a productive and knowledge based workforce would cause serious damages as most of the money as income will leak out of the economy. This has been a worry among several people in recent times. A worrying factor among public is also about the disproportionate lease rents of islands for tourism development. Lately, government leased around 1400 beds not less than US$12000 per bed per year where else some 15000 to 16000 beds rented by the government for developers averages not more than US$2000 per bed per year. If government is sincere to the public, the business community and more importantly have the vision to manage the existing resources for the benefit of living and future generations as it has been a fundamental tenet of sustainable tourism development than fairness is vital. The islands do not belong to any individual but they are properties of the citizen. And such a property should not be rented under valued. If bidders rate beds as high as US$14000 even at present why not government be sincere to the owners of these diamonds, the inhabitants of the country. If government fixes resort rents to an average US$5000 per bed per year, when we reach 2012, government will earn close to US$200 million for lease rent alone. Bearing in mind the countries population is not more than just 300,000 people. One of the first principals agreed by world leaders including the Maldives in Rio de Janeiro in 1992 claims “…Human beings are at the centre of concerns for sustainable development. They are entitled to a healthy and productive life in harmony with nature”.

Thus, to allow human beings to enjoy a healthy and a productive life in a colorful and a blessed destination such as Maldives where its heavenly beauties become like crude oil in the middle-east has to be taken seriously especially in a time where tourism expansion is on its full swing. And such benefits must be more visible and accepted by the inhabitants. Putting environment to the centre stage of tourism development requires more than words and regulations. The developments should be closely observed and it requires more than seeking short term benefits. Socio-cultural aspects such as maintaining a balance between cultural and religious values for its sensitiveness has to be a prioritizing factor in achieving social harmony. Neglecting all this may harm the industry in a long run and destroy the reputation and trust Maldives has gained over the past 30 years, loosing it’s beauty of been the most romantic, peaceful holidays heavens on the face of the earth. With the hard work of its own citizens,

Maldives has achieved unbeatable strength in world tourism even with its own vulnerability. Thus any unproductive move in maturity stage of tourism in the Maldives may devastate the destination’s image in both local and in international front and have all the possibility to become a bitter failure rather than the most needed sustainability we all look forward to achieve. - Posted by Mohamed Saeed