Connect with us

Business

New analysis says Maldives challenges short-term, will remain highest rate-yielding Asia Pacific market

Published

on

Despite increased pressure on the resort market due to a large influx of new supply, Maldives will remain as one of the highest rate-yielding markets in Asia Pacific, global hospitality consulting firm Horwath HTL has said.

In its market outlook for the Maldives, Horwath HTL said foreign tourist arrivals have grown at a 10-year compound average annual growth (CAAG) rate of 8.1 per cent from 2008 to 2018. Though 2018 recorded an increase in foreign arrivals to 1.48 million, YoY growth was at a slower pace of 6.8 per cent due to several factors, including a downturn in the Chinese market and increased political turmoil, it added.

Horwath HTL highlighted the slight shift in demographics in recent years following a decline in Chinese arrivals and an increase in key European arrivals. In 2018, Europe accounted for almost 49 per cent of total foreign arrivals due to a robust increase in arrivals YoY from Italy (18.5 per cent), Germany (4.8 percent), and the United Kingdom (10.2 per cent), it said.

“Placement of countries in the top ten have mostly remained the same compared to 2017, except that the USA overtook Japan to claim eighth place on the back of a larger leap in YoY arrivals. Additionally, Australia replaced South Korea in the tenth place after significant growth in tourist arrivals by about 36 per cent YoY,” the report read.

2018 saw highest supply increase

Horwarth HTL stressed that hotel bed capacity saw the greatest increase YoY in 208, growing by 21 per cent, with the number of registered beds for 2018 totalling to 43,025.

Kaafu Atoll, comprising both North and South Male Atolls, has consistently accounted for the largest share of beds in a single atoll in the Maldives (40 per cent in 2017). The second most concentrated single atoll by bed capacity in 2017 was Alif Atoll (Ari Atoll). Alifu Dhaalu (South Ari) Atoll accounted for about 12 per cent of beds whilst Alifu Alifu (North Ari) Atoll accounted for another eight per cent.

Whilst Baa atoll has become popular for resort development given its UNESCO Biosphere Reserve tag, other atolls that are fast developing include Raa atoll, Dhaalu atoll, and Haa Alifu Atoll. In 2017, bed capacity YoY increased by 99 per cent, 52 per cent, and 48 per cent, respectively.

“With the abundance of resorts in Baa atoll, developers are now looking at its neighbour to the north – Raa atoll. Due to its relatively untouched marine life, developers are now flocking to the atoll for its interesting underwater topography and marine life,” the report read.

Luxury resorts away from Male perform better

According to Howarth HTL, ultra-luxury resorts (above USD 1,000 per night) situated away from Male atoll have historically achieved higher rates than those within Male atoll, albeit at the expense of lower occupancy levels.

“Higher rate premiums are often justified by the more exclusive location of resorts further away from Male atoll, as well as the less polluted waters when situated further away from the capital city of Male,” the report read.

“Rate-wise, since 2015, other atoll resorts have achieved higher rate premiums over Male atoll resorts.”

Howarth HTL found that resorts in Male atoll within the USD 600-1,000 ADR category had experienced a large decline in their historically high occupancy levels over the last five years whilst occupancy of resorts in other atolls had been more stable. Rate-wise, Male atoll resorts had achieved a higher average ADR than resorts in the other atolls despite their overall ADR growth in the past five years being negative (-1.7 per cent) compared to the positive growth (1.2 per cent) of resorts in the other atolls, it said.

Howarth HTL noted that ADR of resorts in both Male and other atolls that are in the below USD 600 category has seen overall declines in the last five years (-2.4 per cent and -0.4 per cent YoY, respectively). This was attributed to the rising competition from cheaper guesthouses.

“In 2018, other atoll resorts with an ADR of above USD 1,000 achieved the highest RevPAR among all categories. This was largely on the back of higher overall ADR. Meanwhile, Male atoll resorts with an ADR of below USD 600 achieved the lowest RevPAR performance due to its low overall rate despite a higher average occupancy,” the report read.

Short-term challenges, market correction to occur 

This year will see a large influx of supply into the resort market, with 17 new openings (2,175 keys) overall. The luxury, upper upscale and upscale segments will see ten, six and one new additions, respectively.

Male atoll itself will contribute 581 more keys in 2019. Dhaalu atoll trails behind for 2019, with an anticipated 536 keys. Gaafu Alifu Atoll is third (331 keys), followed by Raa atoll (312 keys), then Baa atoll (226 keys). The remaining 37 per cent of new supply will be spread out over 2020 and 2021.

Howarth HTL stressed that the large influx of new supply is expected to put pressure on the resort market in the short to mid-term, with occupancy falling to 55 per cent in the above USD1,000 category, 70 per cent in the USD 600-1,000 category and 65 per cent in the below USD 600 category. Rate-wise, the market should not expect large bouts of growth given the stiffer competition compared to five years ago, it said.

“However, the market should remain as one of the highest rate-yielding markets in Asia Pacific. As supply growth tapers and demand continues to grow because of the destination’s unique geography, we should expect overall resort market occupancy to improve in the long run,” the report read.

This report comes amidst concerns by private organisations representing industry stakeholders such as the Maldives Association of Travel Agents and Tour Operators (MATATO) over the lack of effort and budget to promote the Maldives as a destination.

These concerns come as the world-famous holiday destination struggles to match an increased bed capacity.

Over the past few 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 more than 130. That number is set to increase as another 20 resorts are expected to open 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 500 guesthouses in operation today.

The previous government announced 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.

Meanwhile, the new government has pledged to ramp up tourism promotion.

Reflecting the new government’s pledge, the state budget for 2019 includes MVR 104,200,000 (USD 6.7 million) for tourism promotion, up from MVR 34,733,333 (USD 2.2 million) this year and the previous year.

Business

BBM’s ‘Studio of Culinary Excellence’ opens at MNU to bridge classroom, industry

Published

on

The best way to secure the future is to create it.

Creating that future through specific, purposeful initiatives is what drives people of purpose—and, in turn, moves us all closer to the future we desire.

The Maldives is a compelling case study of a tourism-driven economy. Look around and ask why an event is being staged, what someone is working on, or where a new initiative is leading, and the answer will often point to the hospitality sector. Securing the future, therefore, is inextricably linked to strengthening and advancing that sector.

Here, “strengthening” means making the sector’s contribution more sustainable; ensuring that a greater share of its growth benefits the community; continuing to offer a compelling value proposition to the discerning global traveller; and ensuring that visitor experiences continue to generate an unparalleled reputation and valuable referrals.

To achieve these outcomes in the future, it is essential that current and future generations of the local community engage actively with the industry. Making hospitality appealing and aspirational, enhancing the quality of delivery and service, and building a pipeline of skills and talent into the sector are areas in which initiatives, inspiration, infrastructure and investment should be concentrated.

It is firmly in this context that Mr Ismail Hilmy, Chairman and Managing Director of BBM, initiated the establishment of a modern, exceptionally well-equipped and thoughtfully designed model kitchen, aptly named the Studio of Culinary Excellence. By donating the Studio to MNU, under whose auspices it will serve the Maldivian culinary community, Mr Hilmy is responding directly to the need for deeper community engagement. At the heart of BBM’s framework for industry-outreach initiatives— “Because tomorrows start today”—is Mr Hilmy’s ethos of fostering engagement and vibrancy in the industry.

“For our students, the gap between the classroom and a working resort kitchen has always been the hardest one to close,” said Dr Shehenaaz Adam, Vice Chancellor of the Maldives National University. “The Studio of Culinary Excellence closes that gap. Students can now train on the same equipment and to the same standards they will encounter on their first day in the industry. We are grateful to BBM for a partnership that goes well beyond a donation, and we look forward to the Studio becoming a place where the university and the industry learn from one another.”

The Studio therefore creates an opportunity to develop a pipeline of skills and talent in service of the industry.

“Embedding purpose in our work has been an ongoing endeavour at BBM. It keeps us connected to our stakeholders and builds insight, understanding and trust. Being a meaningful partner to academia as we move into the future gives us a great sense of fulfilment and guides our initiatives under the banner, ‘Because tomorrows start today,’” said AVS Subrahmanyam, Chief Operating Officer of BBM.

But what is the value of physical infrastructure without the corresponding spark of aspiration and ambition?

As Ali Afrah Hassan, Executive Representative at Chairman’s Office – BBM, aptly observed: “The Studio offers students and members of the community hands-on experience with world-class equipment, together with knowledge-sharing masterclasses. Who knows—in the not-too-distant future, a Michelin-starred Maldivian chef may fondly credit some of their inspiration to time spent at the Studio!”

Now that is the mind and heart in sync—working towards a future that is aspirational, ambitious and entirely attainable.

Continue Reading

Business

BBM Hulhumalé Phase 2 opening promotion winner receives Honda Airblade

Published

on

Bestbuy Maldives (BBM) has presented a brand-new Honda Airblade motorbike to the winner of a lucky draw held to mark the opening of its newest wholesale outlet in Hulhumalé Phase 2.

The outlet, located at Lot 20286 on Nirolhu Magu, opened on 16 February 2026 as part of BBM’s expansion of its wholesale operations.

To celebrate the opening and thank customers for their continued support, BBM introduced a special lucky draw exclusively for customers who made purchases from the new outlet on its opening day.

Customers who purchased products during the opening were eligible to enter the draw, with a Honda Airblade motorbike offered as the grand prize.

The lucky draw was conducted on 13 August 2026, with Ibrahim Shifaz of Vagthun Vaguthah outlet selected as the winner.

Shifaz was recently presented with the ceremonial key to the Honda Airblade by AVS Subrahmanyam, Chief Operating Officer of Bestbuy Maldives.

The promotion formed part of BBM’s activities surrounding the opening of its Hulhumalé Phase 2 outlet, which provides customers with access to the company’s range of wholesale products from the growing residential and commercial area.

Bestbuy Maldives is a supplier and distributor serving businesses across the Maldives, including customers in the hospitality, food service and retail sectors.

Continue Reading

Business

Football legends receive FIFA World Cup 2026 match balls signed by President Muizzu

Published

on

Male’ Aerated Water Company (MAWC), the authorised bottler of The Coca-Cola Company in the Maldives, on Thursday hosted the Official FIFA World Cup 2026™ Match Ball Handover Ceremony, presenting Football Legends of Maldives with official FIFA World Cup 2026™ match balls signed personally by Dr Mohamed Muizzu, President of Maldives.

Held in partnership with the Ministry of Youth Empowerment, Sports and Fitness, the ceremony recognised former national footballers whose achievements, service and influence have helped shape football in the Maldives and inspired generations of players and supporters.

The Coca-Cola Company has been an official partner of FIFA since 1974, making it one of the longest-standing partnerships in the global sport. For MAWC, the handover brought that global partnership to life locally by connecting the FIFA World Cup with people who have contributed to Maldivian football history.

As the sole authorised Coca-Cola bottler in the Maldives for over 35 years, MAWC has supported local sport through partnerships, campaigns and community initiatives. The ceremony continued that commitment by recognising the legacy of players who represented the Maldives and contributed to the growth of football in the country.

“Maldives’ football legends have given generations of supporters moments of pride and have played an important role in shaping the country’s sporting history. At MAWC, we believe recognising their contribution is as important as supporting the next generation. Through our partnership with Coca-Cola and FIFA, and in collaboration with the Ministry of Youth Empowerment, Sports and Fitness, we are honoured to celebrate their legacy. These match balls are a token of our appreciation for what they have given to Maldivian football,” said Milind Derasari, Chief Operating Officer, MAWC.

Adding to the excitement of the football season, MAWC ran a nationwide FIFA World Cup 2026™ consumer promotion from 21 March to 24 May 2026. Eight winners received an all-expenses-paid experience for two to attend a FIFA World Cup 2026™ match. Hundreds more won Coca-Cola branded merchandise and other prizes during the campaign, bringing the excitement of the world’s largest football tournament to consumers across the Maldives.

MAWC remains committed to building partnerships that support the development of sports across the Maldives, working with the Government of Maldives and other partners.

Continue Reading
Advertisement

Trending

Copyright all rights reserved by Maldives Promotion House 2023.