Tourism in the Maldives

Tourism is the largest economic industry in the Maldives, as it plays an important role in earning foreign exchange revenues and employing 25,000 people in the tertiary sector of the country. The archipelago of the Maldives is the main source of attraction to many tourists visiting the island country. Chinese entrepreneurs have been swiftly amassing assets connected to the tourism sector in the Maldives. Given that tourism is the primary economic driver in the Maldives, this trend is affording the Chinese substantial influence over the nation's economy.[1]

An island resort in the Maldives
Diamonds Thudufushi Beach & Water Villas, a luxury resort on Thudufushi, Ari Atoll
Tourism Zone

The tourism industry is especially vulnerable to climate change: as one of the island nations expected to be most impacted by climate change, sea level rise and subsequent increased extreme weather, coastal flooding, and coral bleaching damage the natural attractions that bring many of the tourists to the country. During the tenure of former President Yameen, the Maldives' indebtedness to China escalated to an amount equivalent to one-fifth of the nation's GDP. Concurrently, China assumed a pivotal role in the tourism sector, a crucial component of the Maldivian economy. [2] The Maldives is currently facing mounting pressure to fulfill its international debt obligations to China, exacerbated by an economic downturn resulting from the COVID-19 pandemic. This crisis has severely impacted the country's tourism sector, which serves as its primary source of foreign exchange earnings, supporting a population of 400,000 residing on 198 of its 1,190 islands.[3]

History
Flag of the Republic of Maldives

Tourism in the Maldives began in 1972. A United Nations mission on development which visited the Maldives Islands in the 1960s did not recommend tourism, claiming that the islands were not suitable. Ever since the launch of the first resort in Maldives in 1972, however, tourism in Maldives has flourished. The arrival of the first tourist's group is estimated to have occurred in February 1972. Tourism in Maldives started with just two resorts with a capacity of about 280 beds. Kurumba Island Resort is the first resort opened in Maldives, followed by Bandos Island Resort. At present, there are over 132 resorts located in the different atolls constituting the Republic of Maldives. Over the decades, the number of tourists in Maldives is rising continuously. In 2009, local island guesthouses started popping up in the Maldives. This was thanks to a change in regulations that began to officially allow tourists to stay among the local population, rather than just on privately owned resort islands. In 2015, a total of 1.2 million tourists visited the Maldives, and another 1.5 million visited in 2016.[4]

Emblem of the Republic of Maldives

In 2018, the Maldives operated 130 island-resorts. Current work is being undertaken to boost tourism room capacity by constructing another 23 properties, which will include foreign developers such as the Waldorf Astoria, Mövenpick, Pullman and the Hard Rock Café Hotel. Extensive upgrades at the Velana International Airport will allow for 7.5 million visitors by early 2019 or 2020.[5]

Level of tourism development

Tourism in the Maldives has started in 1972 with only two hotels, now – there are more than 100 operational resorts. The unique condition of Maldives is that one island is one resort, meaning that one hotel occupies the whole island. By doing so, resorts provide more privacy and more luxury for their visitors. The Maldives are also trying to stay eco-friendly and use more of solar energy rather than diesel. The Maldives provide facilities and services, entertainment and telecommunication services, they also provide numerous resorts, hotels, guest houses, and liveboards.[6][7]

Overview of a typical tropical resort
A Maldivian tourist resort

A tourist resort in the Maldives typically consists of a hotel on its own island, with its population entirely made up of tourists and work force, with no local people or houses. China has established a presence in nearly every facet of the Maldivian government, tourism industry, and economy, spanning both the private and public sectors.[8]

Tourism workers and employers

Workers of the tourism industry are represented by the Tourism Employees Association of Maldives (TEAM). TEAM argues the 25,000 workers employed in the industry face poor conditions and have very low wages (between US$80 to US$235 monthly) given the cost of living.[9]

Arrivals by country

Most visitors arriving to the Maldives on short term basis, were from the following countries of nationality:[10][11][12][13]

Foreign tourist arrivals
Rank Country20182017201620152014201320122011
1China283,116306,530324,326359,514363,626331,719229,550198,655
2Germany117,532112,109106,381105,13298,32893,59898,35190,517
3United Kingdom114,602103,977101,84392,77588,70485,86991,776104,508
4Italy105,29788,84871,20265,61657,86257,85462,78283,328
5India90,47483,01966,95552,36845,58738,01431,72130,978
6Russia70,93561,93146,52244,32366,30876,47966,37863,936
7France50,47642,36540,48742,02450,65654,32856,77559,694
8United States42,90139,18032,58929,30825,64120,03416,04914,490
9Japan42,30441,13339,89439,24438,81739,46336,43835,782
10Australia37,25427,360N/AN/AN/AN/AN/AN/A
Total1,484,2741,389,5421,286,1351,234,2481,204,8571,125,202958,027931,333

Climate change
Main article: Climate change in the Maldives

The Maldives' economy is greatly influenced by any climate changes. Tourism sector can be damaged by the increased likelihood of violent storms, damage to coral reefs, and beach erosion, which are now more likely to happen because of the rising seas.

As a consequence of climate change, Maldives is now facing the problem of rising seas and coral reefs bleaching. According to the World Bank, with "future sea levels projected to increase in the range of 10 to 100 centimeters by the year 2100, the entire country could be submerged." New government has made a decision to fight the rising seas problem with geoengineering projects instead of trying to move the population. The idea is to rent out other islands and even build new islands, so the population of those islands who are more in trouble could be relocated. One of those built islands is Hulhumale'.[14]

It has been also pointed out that some islands can grow naturally.[15]

World Bank states that, "Rising sea temperatures also threaten the coral reefs and cause bleaching and death, with the most severe damage in areas that are stressed by pollutants, or damaged by physical disturbance. Vulnerability to climate change hazards has been magnified by damage to coral reefs which has in turn impaired their protective function, thus a negative cycle of impact."[16]

Health concerns

On 24 May 2021, Maldives had the world's fastest-growing COVID-19 outbreak, with the highest number of infections per thousand people over the prior 7 and 14 days, according to data compiled by Bloomberg.[17] Doctors warned that increasing demand for COVID-19 care could hinder their ability to handle other health emergencies in the Maldives.[18]

Environmental concerns

Ecotourism
The resort island of Landaa Giraavaru (Maldives).

There is some promotion of ecotourism in the Maldives, with resorts emphasizing recycling of heat that is wasted in producing electricity and stricter policies of waste disposal.[19]

Nevertheless, the Maldives have frequently come under criticism for their lack of protection of the local shark populations, which have sharply decreased after being hunted extensively for decades. In some areas, sharks have entirely disappeared. Sharks are hunted primarily for their fins. Shark fins are exported from the Maldives to other countries in Asia, where they are regarded as a delicacy. The fins are amputated from the live animals, which are then thrown back alive into the sea.

Although this practice is prohibited by law in the Maldives, these laws are not respected or enforced by the local authorities.[20]

In 2001, a local environmental organization called Seamarc/Marine savers (known onsite as Reefscapers), set up an ambitious program of reimplantation of coral in damaged areas, on the basis of resort sponsorship.[21]

"There are big challenges that come with the advantages of the islands' tourist assets, however," said Richard Damania, World Bank Lead Environmental Economist. "The country's coral reefs, which protect it from storm surges and serve as the main attraction for the tourism-driven economy, are in danger of being damaged or destroyed by poorly handled waste disposal methods."[16]

Natural environment
View from the beach on the turquoise ocean.

Its tourism industry is today the Maldives' largest revenue generator.[22] Due to their underwater scenery and clean water, the Maldives is ranked among the best recreational diving destinations of the world,[23] with over 60 local dive sites across the islands.[24] It was also reported to be the world's most desired honeymoon destination, according to a global survey by Agoda.com.[25]

Safety concerns

The level of crime in the Maldives is low, but some personal belongings left on the beaches or in the hotels can be stolen. Knife crime in populated areas, like the capital Male, has increased. Tourists should also follow local advice on if there is any danger with swimming.

Some piracy and armed robbery attacks have also occurred in the area of Gulf of Aden and Horn of Africa. A threat of terrorism is possible; the targets can include: government buildings, schools, places of worship, airports, public places, etc.[26]

On February 5, 2018, the government declared a state of emergency due to the increased protests and aggressive clashes with the police in Malé. Those demonstrations are advised to be avoided.[27]

See also

References
  1. "Maldives: The Latest Victim of Chinese Debt Diplomacy". www.managementstudyguide.com. Retrieved 23 September 2023.
  2. "China's sustained influence in the Maldives".
  3. "Maldives' Chinese debt and political risk could lead to trouble in paradise". Reuters. 18 September 2018. Retrieved 23 September 2023.
  4. ""Over 40 years of sustained tourism growth"". The Business Report. 26 July 2016. Retrieved 14 July 2017.
  5. "Luxury resorts turn fantasy into reality amid sector swell". The Business Report. Retrieved 10 September 2018.
  6. "DEVELOPMENT OF TOURISM IN MALDIVES" (PDF).
  7. ""The Maldives has grown to the next level of tourism"". The Business Report. Retrieved 19 March 2018.
  8. "Long shadow of China recede over Maldives as Yameen's legacy becomes distant past". WION. Retrieved 16 September 2023.
  9. Report on the Current Status of the Tourism Industry Tourism Employees Association of Maldives 22 January 2009
  10. "Tourism Yearbook 2017" (PDF). Ministry of Tourism (Maldives). Retrieved 29 December 2017.
  11. "Statistics Year Book, 2001–2017". Ministry of Tourism – Republic of Maldives. Retrieved 29 December 2017.
  12. "Tourist Arrival by Nationality, January – December 2017" (PDF). Ministry of Tourism (Maldives). Retrieved 24 January 2018.
  13. "December 2018".
  14. Juvia, Hans (3 October 2019). "10 of the most beautiful Maldives resorts to dream about". Retrieved 5 October 2019.
  15. "On front line of climate change as Maldives fights rising seas". New Scientist. Retrieved 20 March 2018.
  16. "South Asia – Climate Change in the Maldives". web.worldbank.org. Retrieved 20 March 2018.
  17. "With Highest Covid Rate, Maldives Imposes 16-Hour Curfew". BloombergQuint. 24 May 2021.
  18. "Maldives reports 61st Covid-19 death in ongoing month of May". raajje.mv.
  19. Fennell, David A. (2008). Ecotourism. Routledge, 2008. ISBN 0-415-42930-7, p. 185.
  20. Bloody shark slaughter in the island paradise Der Spiegel, 09-15-2008.
  21. "Reefscapers Story – Coral Reef Propagation". marinesavers.com. 4 March 2016.
  22. "Maldivler Balayı - Maldivler Hakkında - balayi-turlari.com.com".
  23. Garrod, Brian and Stefan Gossling (2007).New Frontiers in Marine Tourism. Elsevier, 2007. ISBN 0-08-045357-0, p. 31.
  24. "The Most Romantic Honeymoon Getaways in the Maldives". Kenwood Travel. February 2018.
  25. "World's best honeymoon spot is..." CNN. 14 February 2014. Retrieved 31 March 2014.
  26. "Safety and security – Maldives travel advice – GOV.UK". www.gov.uk. Retrieved 20 March 2018.
  27. Canada, Government of Canada, Global Affairs (16 November 2012). "Travel Advice and Advisories for Maldives". Travel.gc.ca. Retrieved 20 March 2018.{{cite web}}: CS1 maint: multiple names: authors list (link)
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