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Maldives central bank says tourism revenue up 88 percent in Q1-2018

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Maldives tourism receipts recorded an increase of 88 percent in the first quarter of the year, a survey by the country’s central bank has shown.

In the Quarterly Business Review conducted from April 4-26 by the Maldives Monetary Authority (MMA), majority of the respondents from the tourism sector indicated an increase in total revenue and resort bookings in Q1-2018 when compared with  Q4-2017 — net balances of 88 percent and 58 percent respectively. As for average room rates, 81 percent of the respondents reported an increase in Q1-2018 in comparison to the previous quarter.

“[It was a reflection] of the peak season of the tourism industry,” the survey, which was participated by 100 enterprises from the major sectors of the economy, read.

Looking at employment numbers of the tourism industry during the review quarter, 53 percent of the respondents indicated that their employment remained unchanged, while 39 percent reported an increase. With regard to business costs, 77 percent and 60 percent of the respondents reported an increase in labour-related costs and input prices respectively.

According to the survey, half of the respondents from the tourism industry indicated no change in their capital expenditure, while 80 percent of the respondents reported their access to credit remain unchanged in Q1-2018 from Q4-2017. Reflecting these developments, 42 percent of the respondents cited an increase in the financial situation of the company, while a majority reported no change, it said.

“Following the seasonality in the tourism sector, the majority of the respondents expect total revenue, resort bookings and average room rate to decrease in Q2-2018 compared with the review quarter, as indicated by the negative net balances,” MMA said, in its survey report.

“… access to credit is also expected to remain unchanged. With regard to future investments, 31 percent of the respondents anticipate an increase in capital expenditure, while the majority foresee their capital expenditure to remain unchanged in Q2-2018. As for the financial situation, 54 percent of the respondents expect it to tighten, while 44 percent anticipate it to remain unchanged in Q2-2018.”

The central bank’s estimates are in line with growth trends reported by other authorities as well as independent research firms.

According to official figures released by the tourism ministry, total arrivals for the first five months of the year increased by 10.6 percent to reach 632,729 compared to the 572,318 in the same period of last year.

Meanwhile, data compiled by leading global market research and analysis firm STR has shown that Maldives posted the highest occupancy level for a Q1 since 2014 thanks to the highest Q1 demand increase in the destination since 2010.

According to STR’s Asia/Pacific hotel performance report for Q1 2018, occupancy in the Maldives during the January-March period stood at 76.7 percent — an year-over-year increase of 7.6 percent. This represents the highest absolute occupancy level for a Q1 in Maldives since 2014 thanks to the highest Q1 demand increase in the country (10.6 percent growth) since 2010, it said.

STR data also showed that Average Daily Rate (ADR) in the Maldives increased by 1.6 percent to MVR 12,569.93 (USD 815.10) in Q1, while Revenue Per Available Room (RevPAR) in the destination also recorded a 9.4 percent growth to reach MVR 9,637.91 (USD 624.97) during the first three months of the year.

However, domestic political instability has hit tourist arrivals, with numbers posting declines for two consecutive months.

Maldives attracted a wave of bad publicity following the recent declaration of a state of emergency, which ended in March. However, the political turmoil was strictly restricted to the capital city, away from the resorts and local islands where holidaymakers stay in.

However, MMA has projected the performance in the Maldives tourism industry to firm up during the year despite the current political instability.

Over the past five years, dozens of uninhabited islands have been leased to local and foreign resort developers. Several international brands have entered into the market, increasing the number of resorts to 120. That number is set to increase as the government has announced the opening of some 20 new resorts over the next two years.

Along with the new resort openings come the challenge of increasing demand from budget travellers who choose guesthouses over luxury resorts that the Maldives is known for. The guesthouse sector has rapidly expanded with over 450 guesthouses in operation today.

The government has announced new steps to maintain a structured growth in tourism, including a slowdown in leasing islands for resort development and increased marketing efforts in key markets such as China and the Middle East in order to reach an ambitious target of a record 1.5 million tourist arrivals this year.

Events

Maldives Association of Tourism Industry (MATI) holds its 34th Annual General Meeting

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The Maldives Association of Tourism Industry (MATI) held its 34th Annual General Meeting at Kurumba Maldives today, with a total of 100 members in attendance. 

The day’s events began with a welcome address from the Chairman of MATI, Mr. Mohamed Umar, who also presided over the session. The agenda included an address from the Secretary General, Mr. Ahmed Nazeer, the review and approval of the minutes of the 33rd AGM, the review and adoption of the Annual Report and Financial Reports for 2023, the approval of the 2024 budget, the appointment of auditors for 2024, the welcoming of new members and election of executive board members to the two vacant positions (by-election).

In the member discussion session, the following topics were covered: the Government’s aim to reach net-zero emissions by 2023 and renewable energy generation in the Tourism Industry, new terminal of Velana International Airport and developments, employment challenges, the Industrial Relations Act and trade unions, environmental conservation and the significance of creating and executing efficient management plans for protected areas like the South Ari Marine Protected Area (SAMPA).

Following the official proceedings, the Minister of Tourism Hon. Ibrahim Faisal and the Minister of Economic Development and Trade Hon. Mohamed Saeed joined the forum. The Ministers provided remarks and engaged in a Member Q&A session. This session provided members with the chance to directly engage with the Ministers and delve into crucial industry topics. The queries focused on the Economic Outlook, forthcoming development plans and  immediate challenges and issues affecting the Tourism Industry.

A video presentation was also showcased that delved into the extensive work undertaken by MATI in 2023. The video also touched upon the Tourism Industry’s performance over the past 5 years, as well as the current and projected human resource capacity of the sector.

In his closing remarks, the Secretary General highlighted the importance of collaborative efforts in addressing industry challenges and called for greater unison amongst industry stakeholders, ending with an acknowledgement of the promising start to the year in terms of arrivals.

Executive Board Members elected to the 2 vacant positions (by-election):

  1. Ibrahim Shareef, CEO and Managing Director of Maldives Airports Company Limited
  2. Renato De Olivera, General Manager of The Ritz-Carlton Maldives, Fari Islands and representative of Marriott International
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Business

Unlocking power of travel storytelling at Travel Creators Exchange 2024

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Join us for the Travel Creators Exchange 2024, taking place on February 1, 2024, at the Hotel Jen in Male’, Maldives.

This dynamic event provides a platform for networking and collaboration among Maldives-based travel creators, fostering connections, idea-sharing, and the establishment of lasting partnerships to expand opportunities and monetise content.

Our lineup of distinguished speakers includes:

  • Zihuny Rasheed, Deputy Managing Director of MMPRC, will present on “Power of Digital Storytelling: Collaborative Strategies for Destination Promotion.” MMPRC actively markets the Maldives globally, utilising a comprehensive approach that includes travel trade shows, roadshows, digital marketing, and more.
  • Amjad Thaufeeg, Commercial Director of Kuda Villingili Maldives Resort, brings over 23 years of hospitality industry experience. He will discuss “The Role of Content in Tourism Marketing,” drawing on expertise in revenue, customer service, sales & marketing, and human capital development.
  • Suresh Dissanayake, Assistant Vice President of Sales & Marketing of Heritance Aarah & Adaaran Resorts, with nearly two decades of experience, will shed light on “What does a Sales and Marketing Director Do?” He brings extensive luxury hospitality experience and a proven track record in sales, distribution, and marketing.
  • Vishal Amir Ahmed, a versatile cinematographer and content creator, will explore “Who is a Content Creator.” Currently associated with Various Arts Studio, he specialises in providing multimedia solutions to various clients.

Organised by Maldives Insider, Maldives Virtual Tour, Travel Trade Maldives, and Hotelier Maldives, this collaborative effort aims to empower Maldives-based travel content creators and elevate the Maldives as a premier destination for captivating travel storytelling.

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Events

Acclaimed contemporary artist Ana Pušica explores perpetuality and community at Patina Maldives

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Ana Pušica Kramer, an internationally  acclaimed contemporary artist, joins Patina Maldives for an exclusive  art residency in the now infamous Fari Art Atelier. From January 22 to  February 22, 2024, Ana Pušica will grace the shores of the Fari Islands,  weaving a vibrant narrative of colour and emotion across her larger  than-life canvases. 

Her artistry transcends boundaries, melding abstraction and figuration into awe-inspiring masterpieces. Having exhibited globally, from New York to Beijing, Ana’s paintings are a physical, intuitive act rooted in movement.  Described as a “beautiful fluorescent thunderstorm,” Ana’s art explores light and colour, capturing the energy of life itself. 

The Fari Art Atelier which has previously hosted the likes of Daniel Arsham, Chris Stamp and David Nott, will be transformed into Ana’s studio and gallery showcasing her enthralling artworks—a mesmerising journey through poetry, memory, and the vibrant interplay of colour. Guests at Patina are invited to delve into Ana’s world, where each stroke reveals layers of meaning, evoking sensations of intense lightness and boundless interpretation. 

At Patina Maldives, Ana will immerse herself in a month-long residency, inviting the Patina Malidves community or guests and team to witness her artistic fervour firsthand. Guests will have the rare opportunity not only to observe her creative process but also to engage with and create art alongside this luminary.

Experience artistry at its most exclusive

Art Exhibition
Experience Ana’s captivating exploration of colour and emotion in her spellbinding artworks displayed at the Fari Atelier.

Art Workshops: Message in a Bottle
As part of a collaborative artwork, Ana invites Patina guests to participate in short workshops, actively contributing to the creation of a permanent installation at Patina Maldives.

Open Studio Session
Join Ana for an exclusive open studio session, offering guests a behind the-scenes look at her creative process.

Ana Pušica residency package
Discover a world where creativity knows no bounds as Ana Pušica, the maestro of contemporary art, transforms Patina Maldives into an immersive canvas of inspiration.

Book now to secure your experience.
For more information and reservations, please visit Patina Maldives or contact
reservations.maldives@patinahotels.com

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