Despite falling 40,000 arrivals short of its target of 1 million tourists last year, the government of the Maldives says the rise in visitors from Asia should help it achieve the milestone this year.
Asian tourists now account for about 40% of all arrivals to the Indian Ocean archipelago, giving hotel operators from the region a better opportunity to tap into this growth market.
“We are trying to diversify our market and attract more investors and tourists from Asia, instead of relying heavily on the European market. It is obvious that there has been a great increase in the number of Asians who are willing to pay for holidays and vacations in the past few years,” said Ahmed Salih, permanent secretary to the Ministry of Tourism, Arts and Culture, during his recent visit to Bangkok.
Many Asians now make vacations part of their lifestyles, something that was not the case in the past, he said. They start to save money and plan to spend it on their holidays, a trend that will create a big upturn for global tourism in the future.
The growing Asian market is led by Chinese luxury travellers, whose numbers rose 51.3% year-on-year in the first quarter of 2013. China is now the Maldives’ single largest source market.
“The Chinese are now everywhere. Particularly in the past three years, the number of tourist arrivals from China has seen a dramatic increase,” said Mr Salih.
“There will be more than 6 million new graduates from Chinese universities per year. These people have a high possibility of obtaining decent jobs and without doubt their ability to travel internationally is very high. Therefore it is important that we are well-prepared to attract these potential customers.”
Cup noodles and mini-chopsticks are now regular fixtures in many hotel mini-bars, he said. As well, Chinese speaking tour guides, receptionists and dive instructors are being hired. Free time for shopping is also being built into Chinese travellers’ itineraries.
All these factors offer opportunities for investors with the right expertise, a fact not lost on Thailand’s leading hospitality names; Centara Hotels & Resorts, Anantara Hotels & Resorts and Dusit International are all active in the archipelago.
Anantara, part of the Minor Group, has hired many Chinese-speaking guest relations officers and the popular game mahjong is available at its three properties, said senior executive Mark Thomson.
The archipelago of 1,200 tiny islands markets itself as “one island, one resort”, which helps to justify the high accommodation prices compared with other tourist destinations. Most visitors embrace the concept as a great opportunity to relax in privacy and absolute tranquillity.
“I get a lot of questions from people who ask why the prices of our resorts are so high. The simple answer is that we have to import almost everything from other countries, including rice and fresh water,” explained Mr Salih. “The hotel operators here also have to cover the cost of living for their staff and their accommodation.”
Though the Maldives is well-known as a honeymoon destination with luxurious beach villas and over-water bungalows, various sports, especially diving, and other exciting facilities are available.
Tourism accounts for about 30% of GDP and more than 60% of the foreign-exchange receipts in the country of just 328,000 people. With total employment of around 14,000, the sector is the key economic growth engine. Government policies that stress protection of fragile natural resources underpin all tourism development decisions.
To attract investors, the government has extended lease periods on islands, originally 20 years, in a series of steps to 50 years. As well, island rent assessments have also been standardised and made transparent across the board. This has attracted Thai hotel firms as well as other Asian names including Shangri-La, and Banyan Tree.
“Anantara’s properties have seen positive growth of about 14% in the first quarter of 2013 compared to the same time last year,” said Mr Thomson. “We see ecotourism is a growing trend in the Maldives. Many guests understand the fragility of the island nation, making activities such as coral planting and rejuvenation popular.”
Centara Hotels & Resorts, meanwhile, is planning to open its third resort in the Maldives next year after three years of success with its first two, said Chris Bailey, senior vice-president for sales and marketing.
“Our ‘Ultimate All-Inclusive’ programme, which requires no cash to be spent on the island and includes Champagne, breakfasts, lunches, dinners and spas, has been a very successful marketing campaign for us, since many people are aware of the high cost of goods and services in the Maldives,” Mr Bailey told Asia Focus.
From an operational point of view, he said, logistical and technical challenges such as goods delivery and power generation made doing business in the Maldives difficult. However, the country’s development aspirations and high tourist demand have given Centara great confidence in its venture.
With its investor-friendly policies, strong tourism fundamentals and tempting returns, the Maldives will continue to attract capital to its tourism sector. However, Mr Salih conceded that rising seas put the islands, most of them less than five feet above sea level, at risk of being uninhabitable. For that reason, the Maldivian government is at the forefront of fighting climate change.
“Climate change has not been kind to the Maldives. We all need to respect nature, to not abuse it and to be responsible,” he said. “We always ask visitors to strictly follow our regulations. We tell them to bring back everything they brought and to not take anything from us, except cherished memories and nice pictures. The only things we asked them to leave here with us are their footprints, and to please remember to come back and visit us again.”
