Maldives Tourist Destination - Assignment Example

Maldives Tourist Destination Name Institution Date Table of Contents Table of Contents 2 Tourism and Hotel Development in the Maldives 3 Introduction 3 Impetus for Tourism or Hotel Development in the Maldives 3 The Principal Dilemmas Faced in the Maldives 5 Main Strengths and Weakness in the Tourism and Hotel Offering 6 Key Stakeholders and Local Communities involvement 9 Local politics influence on tourism development 12 Established plan and Continuous plan 13 Tourism Panning Tied into Broader Development 14 Evidence of sustainable strategy 15 Controls on Tourism Development 16 Chance for Improvement 17 Conclusion 18 References 18 Tourism and Hotel Development in the Maldives Introduction The Maldives is a nation comprising of islands which are found scattered in the Indian Ocean. It is made up of 1,190 small coral islands among which only 200 are inhabited by a population of close to 300,000 residents. The capital of this nation is also an island and is located close to the International Airport, which is also an island. This report examines the various aspects that have seen the development of tourism in Maldives. There are also challenges, strengths and possible opportunities for improvement of tourism in (Hall & Page, 2000). Impetus for Tourism or Hotel Development in the Maldives Maldives has seen important growth in tourism for the past thirty years. If looked at alongside the other sectors, tourism is the major pillar of the economy of the nation. Development of tourism in Maldives is based on the principle of isolation of tourists from the bulk of the indigenous population and the physical configuration of development of tourism is a unique one. The tourism industry is synonymous with resort islands and every resort occupies a separate island and is absolutely self-contained. The isolation is practical due to availability of huge number of islands which are uninhabited that can be developed into tourist resort islands. The initial resort was put up in the year 1972. Maldives blossomed as an international tourist hub in the year 1972. The government is greatly involved in the management of non-natural and natural resources for the advancement in tourism sector. There have been reasons that have given impetus to the development of tourism industry over the years at Maldives. In the first place, local establishment condition and convenient transportation are contributing factors that have attracted tourist from all corners of the world. Air traffic is well advanced, development of maritime and navigation facilities has given the tourist hub an upper hand. Commencing the late 80s and the early 2000s there was an upsurge of international visitors accessing Maldives owing to the sound and fast advancement in infrastructure. The international airport was expanded and it saw increase in bed capacity in main tourist resorts and hotels (Allison, 2005). Tourism has also developed owing to the support of the government of the tourism sector. Tourism is a large source of earnings in foreign exchange and leads to increase in the import of capital and consumer goods for the betterment of the economy. Tourism has contributed to increase in the employment rate and consequently national income through revenues. The local government has remained in the forefront in attracting investors from foreign countries to invest in the foreign sector. The about seventy islands are being funded by foreign investors to developed them into tourists destinations. It is also in the interest of the local government to see that to see that the ecological environment is preserved through maintenance of fauna and flora biodiversity (Orams, 1999). Another aspect that has led to development of tourism in the Maldives is the fact that it was a colony of the Western Europe countries. Maldives became a political entity that was independent preceding the year 1558, from 1558 to 1573 the control of Maldives was taken over by the Portuguese, in the year 1887 it became a protectorate of the British government, and it eventually attained sovereignty in 1965. The history significance of Maldives made Europe to be a main market of Maldives tourism. Currently tourists from Europe account for seventy five percent of the total population of international tourists that arrive at Maldives (Bhatia, 2007). The last reason for development of tourism in Maldives is due to its attractive string low-lying coral island in the Indian Ocean. It is endowed with natural resources that are abundant in the hot tropical climate. White sandy beach and bright sunshine are very alluring and intriguing. Two monsoons visit Maldives each year. The northern is from November to April while the southwest is experienced in May to October. Wind and rain is brought in July and June by the southwest monsoon. It leads to increase in humidity and maintains the temperature around twenty five degrees centigrade (Orams, 1999). The Principal Dilemmas Faced in the Maldives Masters (2009) notes that human resource is very important to support the development of tourism at Maldives but it is disappointing that there is a shortage of skilled labour for the social and economic welfare. Being a world class tourist hub, Maldives is increasingly popular to international visitors from many corners of the world. With the upsurge in the number of visitors there is increased demand of skilled manpower in the service industry. Instant development in economy comes with a share of challenges and particularly shortage in skilled manpower. The local education has been pointed out in a report as the contributing factor in the shortage of skilled labor. Although enrollment in the primary school is quite high, the advancement to secondary school is only recorded at fifty percent. Imbalance in gender in education is very prevalent in the Maldives society. Girls are denied equal access to opportunities in education and therefore miss out on employment opportunities as compared to the boys. Glaringly it has been noted that by the year 2009 only 250 Maldivians had university degrees. This has consequently led to shortage of skilled labor in Maldives (Cognizant Communication Corporation, 2010). According to Allison (2005), the issues of sea level rise and climate change are causing a challenge that is enormous to Maldives. Maldives comprises of 26 atolls and almost 1,200, and it is located in the heart of Indian Ocean. Presently the highest point of the Maldives is about eight feet above the sea level and compounded with annual rise of between 0.09m and 0.37m, some species and properties have consequently vanished or have become extinct over time. There is the imminence of global warming resulting into glaciers meltdown and the rise in the sea level is posing a great danger to Maldives. The big challenge is not only plummeting of the economy progress, but more so the survival of the local community and the whole existence of the country. There is a threat to development of the economy. According to Ellis (2008), the tourist sector is the major contributor to the country national income in terms of revenue and foreign exchange. Changes in climate can adversely impact on the development of Maldives economy and the major contributing factor will be decline in tourism. Huge numbers of tourists visit Maldives annually. In the sea level continue to rise to a damaging level, artificial and natural landscapes will be wiped out eventually. There will be a serious threat to the tourism industry. Apart from affecting tourism, the local communities will also be affected in the negative way. The residents will be compelled to move to alternative places and Maldives will lose its civilization, national culture and self-confidence (World Bank Publications, 2009). Main Strengths and Weakness in the Tourism and Hotel Offering Tourism in the Maldives has evolved to a dramatic level over the years. The white sandy beaches, opportunities for snorkeling and scuba diving in the coral reefs and exceptional marine life, clear lagoons, sunny weather, and scenic peaceful environment are some of the pillars that have send the tourism industry thriving. Maldives is a perfect get away tourist destination with a serene atmosphere. Despite the strong side, Maldives tourism also faces a number of challenges (Ellis, 2008). In the first place there are plenty of natural resources and classy hot and established resorts. Tour operators pointed out an optimal combination of presenting the culturally-oriented product of Sri Lanka with the exceptional island holiday of the Maldives. With the mounting significance of the mainstream market for sand, sun and sea holiday, Maldives established itself as a separate tourist destination. Being a country of tropical and marine environment, Maldives is dotted with unique species of greenery and animals. Transparent seawater and exceptional resource for physical activities like swimming, scuba diving and snorkeling make Maldives a unique destination for the would-be tourists. The country has a keen interest in protecting its natural beauty constituted of biodiversity and numerous islands. Tourism being a forefront income generating service industry, the government is directly involved in promoting tourism (Allison, 2005). In Maldives also there are standard accommodations on offer. Coupled by an upsurge in tourism, upgrading and development of tourism-related accommodation and infrastructure, and advancement in tourist activities has led to expansion in all areas. The runway at Hulhule’s International Airport was completed in the year 1981. This enables direct charters from Europe by the use of planes which are wide bodied. The expansion of air travel aided by numerous promotional and some concessional fares, as well as rapid charters growth has contributed to the strength of Maldives being a formidable tourist destination. By the end of the first decade two resorts with 280 beds capacity was opened inn 1972 in North Male’, 44 resorts were operational and bed capacity increased tremendously to about 4000. Other new resorts of about 36 were added and the existing resorts upgraded. Diverse range of facilities is offered at different resorts. There is presence of numerous non-franchise hotels like Coco Beach Resort, Banyan Tree Resort and Angsana Resort and Spa. Apart from the non-franchise hotels there is also some famous franchise like Sheraton and Hilton. The tourists are spoilt for choices (Equitable Tourism Options, 2007). The other strength is the ever expanding tourist industry. The initial visitors to come toMaldives came from Western Europe. With the expansion of the economy there has been more tourists coming from Asian countries such as Korea, Japan and China. Over the period from 1994-2004 the growth rate in tourists from Western Europe was at ten point one percent annually. The Oceania growth rate stood at eleven point nine, Americas 7.6 percent, 10 percent African and 8.5 from Asia. It has been noted that tourism is the greatest contributor to the growth of economy through employment and revenue income. Imperfection in the labor market is one of among the main weakness in the tourism offering. The rapid expansion of the tourism and travel industry has surpassed the provision of the labor market of skilled manpower. There is enormous demand for skilled labor but what is being provided cannot match up the required demand. Owing to low-skilled residents occasioned by deficient education has prompted the government to call for importation of labor from overseas to take up skilled, semi-skilled and professional positions (Environmental Conservation, 1988). The second weakness comes from the climatic condition. Despite the country being located outside of earthquake and cyclone belts, it is very sensitive to coastal erosion and windstorms. In 2004 tsunami and earthquake had adverse and substantial consequences on islands that are low-lying in the Indian Ocean. Maldives was caught up in the destruction. Eighty two people died, scores were injured and about twenty six went missing. Among these people were tourists and service personnel. This destruction was responsible for a decline in international tourist arrival and it translated to huge economic loss (World Bank Publications, 2009). Maldives possesses complex and delicate ecosystem. The fact that it is productive does not prevent it from being very sensitive. Indeed it is very sensitive. The isolation of the lands makes the local ecosystem fragile. Sewage disposal possess both environmental consequences and health implications. Contaminating aquifer with faecal coliform bacteria as well as bathing waters could culminate into health problems. Nutrients from sewage will build up over time if the management of waste is poor. There has been a lot of damage resort islands reef occasioned by snorkelers, scuba divers and bathers walking on the reef flat. There is unintentional breakage or deliberate removal of coral fauna for souvenirs by bathers and snorkelers. There is an average breakage of 18 percent of all Arcopora corals every month (Cochrane, 2008). Key Stakeholders and Local Communities involvement Stakeholders are all the people that are involved in behavior, policy and decision making; they are involved in the entire running of something or a system. The concept is applied in professional, societal and academic domains. Any one who develops an interest or has a direct influence on the running of something is categorized as a stakeholder. The stakeholders in Maldives tourism industry are well represented in the Maldives Association of Tourism Industry (MATI), which is a non-governmental nonprofit making organization that was constituted in 1982 for the main goal of promoting tourism in Maldives. Its member include individuals and Maldives companies which take part in tourism and travel related activities; foreign and local agents, dive bases, tour operators, airlines, suppliers, banks and other financial institution. The other stakeholders include the government, political groups, employees, trade associations, employees, and customers. All of the above are involved in the operation of tourist activities in Maldives. External stakeholders comprises of external individuals and organizations while internal stakeholders consists of company general managers and middle-level cadres. The main stakeholders are constituted by tourists, government entities, local communities, public operators and private operators. The local government is an important stakeholder in Maldives as far as the tourist sector is concerned. The government being the main stakeholder to a great extent affects the direction of tourism development in Maldives. Government members representatives have political dominate power and control the direction in which tourism develop in Maldives. The first president committed himself in the development of tourism industry and commissioned commencement of tourism in the year 1972. Tourists are the huge stakeholders who define the direction in which the tourism industry is headed to in the Maldives. Each year approximately over six hundred thousands tourists visit Maldives as opposed to about thirty thousands tourists who visited the country thirty years ago. In the negative side; as more tourists flock to Maldives, the environment is quickly deteriorating owing to the tourists activities that affect the environment. The beautiful coral reefs are being destroyed by snorkelers, bathers and scuba divers. It is foreseen that coral in the north of Male’ will eventually vanish within a span of thirty years if the current destruction rate continues. In as much as the tourism sector is the main contributor to the growth of Maldives economy, it is also the cause of concern to the rapid environmental degradation which would impact negatively to the tourism industry in future owing to the fact that the attraction sites would have been damaged and there will be nothing left to lure the tourism (Environmental Conservation, 1988). Public and private sector feature dominantly in the operational of the tourists activities. The establishment of hotels and tour firms is prevalently in the hands of the private sector. It is also a source of the many fascinations including jewelry that attract tourists to Maldives. There are many services that are being offered by the public and private sector that has led to the rapid growth of tourism in Maldives. Mat weaving and lacquer contribute to the attractions that are available to the tourists. The service industry comes from both the private and public sector. The goods that are produced by the local companies are sold to the tourists. The local communities are very important to the national economy and the development of the tourist sector. Sixty percent of the local labor is devoted to the service industry. The service industry is also responsible to sixty two percent part of the GDP. The local communities are the important providers of services to the industry of tourism. The local communities take up positions in the hospitality and tourism sector. They are a source of skilled and professional labor that is greatly needed in the development of the tourism industry. The local culture and the heritage of the local communities is a great attraction for the tourists. The local communities are involved in the representation of this culture through performances and other exhibitions that showcase the reach heritage of the people. The historical artifacts have been stored in the government archives and managed by the local communities. The local communities also play an important part of preservation of the environment and the heritage of the country. They also play an important part in the development of tourism sector. They also learn a lot from the tourist activities. The tourism sector would not have developed without the involvement of the local communities (World Bank Publications, 2009). Local politics influence on tourism development Maldives government is the regulator, planner and coordinator and the local politics do not have much impact on tourism development. The government is a centralized presidential government formed under the constitution of 1968. The president is elected for a renewable term of five year term. There are no organized political parties but only various factions exist. Maumoon Abdul Gayoom was reelected in 1993 and he also holds the post of minister of defense and minister of finance. Maldives is a presidential system and the president possesses executive powers. The past and present presidents in power have been dedicated to growth of tourism in the recent decade. The current president in power is committed to eco-friendly development of tourism in Maldives. The cabinet holds meetings to deliberate matters concerning tourism development. Residents from other countries hold visa-free status being offered in the Maldives. There is no existence of civil strife and therefore the country is stable enough to provide an optimal environment for tourism development (Bhatia, 2007). A constant and stable political environment has been a main drive for high rates of sustained growth in the Maldives particularly for luring foreign investment. Polity in Maldives is very contrasting from the South Asia neighboring countries. The country was largely independent in the large portion of its recorded history save for a short period of Portuguese colonization that occurred from 1558 to 1573. Maldives was not colonized by the British as they did to the Indian subcontinent, but it was under the British protectorate that managed the foreign policy and the country to run its own affairs. This led to continuance of the traditional system of rule. The form of government that exists did not borrow from the Western civilization. The strength of the government is buoyed by integrating the law, the commitment of people to religion and Islamic authority. However the leasing of resort and islands development has been politicized. The owner of a resort provides employment to inhibited island surrounding it where much of economic activity is dependant on fishing which is exposed to external and internal shocks. More so since employment in the resort is a sure source of income to islanders close to a resort, if the lease hold is sympathetic or not to the President is a very crucial matter in election campaigns as some directly campaign for the president (Scott & Jafari, 2010). Established plan and Continuous plan In the first decade of development there existed no absolutely specific plan. Tourism developed according to the whims of individual private sector in places that provided market advantages concerning accessibility to Hulhule International Airport. The informal development generated almost three thousands five hundred bed spaces with international quality and the industry equally attained a sizeable occupancy rates. The first ever tourism development plan that was formal came to fore in 1980 when the Department of Tourism and Foreign investment was formed. The first decade plan for tourism development did not attain the required standards for international tourism. This plan was launched in November 1980. Following a government policy the resorts have to be developed on uninhabited islands in order to reduce any social-cultural effects to the local communities. The islands belong to the government and they are given to resort developers who pay a long term lease that is accompanied by annual rent that is determined separately for all the islands. The existing tourism development plan is the Maldives Third Tourism Master Plan 2007-2011 that was initiated on August 14th 2007 after many years of development. The aim of the plan is the expansion and fortifying tourism in Maldives as a crucial contributor to social and economic development in way that all Maldivians are able to benefit. The target of the plan is to ensure that tourism is expanding in Maldives without hurting the natural ecosystem. There should be a tourism industry that can be comfortably sustained without overexploitation of resources. The plan highlights the importance of investment from the private sector, human resource development, diversifying products and markets and providing attractive employment opportunities. The Seventh National Development plan is another plan put up drawing its inspiration from the lessons and strengths from the previous plans in Maldives that has existed from 2006-2010. The importance of the plan is to see that sustainable development of the economy is observed which comprises of good governance and environmental preservation. A plan to lead the performance and budget of Maldives for a period of five years has also been constituted. Tourism Panning Tied into Broader Development The majority of development in Maldives is dependant on tourism owing to the fact that it is an islands country. Due to the fact that tourism development is the backbone of Maldives economic growth and development, it has led to general development of this country. There is rapid change in the structure of the economy which was hitherto dominated by tourism. Tertiary institutions have come up at a quick pace to give much needed support to the tourism industry. This has led to the rise in the living standards of the local residents. Airports, hotels, seaports, restaurants, souvenir shops and travel agencies have come up at a quick pace to keep up with the rate of tourism development. Apart from these areas there has also been development in banking, fishing, agriculture, and printing. This will not have been so was not for the expansion that has been realised in the tourism sector that has given a boost to other areas to open up and advance. Tourism is an undisputed source of employment that lays food on thousands of peoples’ tables. About a third of the national income comes from the tourist sector (Scott & Jafari, 2010). Maldives tourism is closely related to marine and diving activities around coral reefs and resorts. Almost 35percent of visitors are initially lured by diving while about 80percent of the international visitors are come to the beach holidays as primarily snorkelers. The tourism sector is threatened by global warming owing to the fact that the country is susceptible to its effect. Due to this development of tourism is tagged on the natural resources that are available to avoid overexploitation. The development should be sustainable in that they do not overwhelm the strength of the natural resource prompting adverse degradation. There is a limitation concerning the built-up are on an island and about 68 percent of beach are can be used for guestrooms. All the regulations are aimed at ensuring there is sanity in tourism development. Evidence of sustainable strategy There have been numerous efforts to put in place strategies that will ensure tourism is developed at a sustainable rate. The National Adaptation Program of Action was a plan that came into existence to ensure that the country adapt to adverse effect of change in climate as occasioned by the events of the disaster that struck in the 2004 and more so a multidisciplinary National Climate Change Technical Team established the initial step to incorporate the stakeholders development. Maldives Vision 2020 charts the roadmap for sustainable development in future without undermining the set national policies. The 7NDP puts in place strategies and development policies put in place by the government from 2006 to 2010. The 7NDP plans target to improve the quality of life of people living in the Maldives country. The development policies should not interfere with the lives of the generations to come. The utilisation of the available resource in a sparing manner it is what is advocated for. The attractive natural resources are being used in a manner that sees them protected all through. Breeding grounds for fish, coral reefs and other resources are being protected so that they do not entirely disappear. There is deliberate effort to regulate the dumping of waste resources. There are activities that are prohibited like coral and sand mining, removal of non-living and living resources and also fish of any type. The government has put in place guidelines and regulations for development and operation of resorts. There should good sewage development as well as waste disposal mechanism (Equitable Tourism Options, 2007). Controls on Tourism Development There are measures that have been put in place to ensure there is development in the tourism industry that is manageable. Operators and local infrastructure development is closely regulated. There should be registration of resorts, hotels, vessels, travel agencies, dive schools, and yacht marinas. There are regulations put in place in the development and operations of the facilities. The Maldives Tourism Act has been put in place as another effort to control development of tourism. This Act provides benchmarks and criterion concerning leasing establishment which are tourism-related, determination of zones of tourism activities and development of public and private properties and services. Permission must be sought out for any foreign ship that desires to anchor in the territory of Maldives from the government authorities. All fauna and flora is protected to ensure continuity. The number of tourist arriving is controlled and the behaviour of the tourists is also regulated. There are requirements that the visitors should meet as they go about enjoying their activities. Chance for Improvement According to Timothy (2010), the marine environment and the natural resources that are available should be diversified to reduce overdependence on them. The tourism should encourage other tourist’s activities and attractions that reduce the pressure on the resources. To resource more attention on marine and beaches there should be sensitising on other tourist attraction such as the culture of the people and heritage artefacts. With diversification there will more opportunities to keep tourism alive in Maldives. The tourism management board should be directly involved in the development of infrastructure to ensure that protection of the coastal region. Moreover there should be enough efforts to make sure waste disposal do not harm the ecosystem leading to the disappearance of natural resources. The government should step up efforts to improve the education system so that more boy and girls are later available for employment in the service sector. The issue of leasing of the islands should not be politicised and it should be fair and transparent do remove unfair completion (Timothy, 2010). Conclusion As it has been outlined inn this report, there are many challenges that tourism sector in Maldives is facing. 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