‘Not the time for new taxes’: Maldives promises cheaper post-coronavirus holidays
Tourism officials in Maldives on Monday promised to offer cheaper holidays in the upmarket Indian Ocean tourist destination when it reopens its borders to visitors.
The island nation’s tourism minister told the participants of a webinar organised by the World Tourism Organisation (UNWTO) that countries should avoid introducing more taxes when they reopen their borders to tourists.
“It’s not the time for new taxes. It’s time to travel again. It’s time to travel safe,” he said.
Ali Waheed said the Maldives will be “a more affordable and a safer destination” when it begins welcoming tourists again in July.
“We are working on guidelines to ensure that our guests once again feel the ‘sunny side of life’ in here,” he said.
“Confidence is the key for a successful international tourism after the pandemic. That’s what Maldives will offer from July.”
The country’s tourism ministry has drafted its own guidelines on reopening the borders and invited comments from industry stakeholders.
Fees proposed in the draft guidelines have also been scrapped.
Maldivian officials have been bullish on their ability to contain the coronavirus outbreak and reopen the country in the third quarter of the year.
The government has formulated five scenarios with possible timelines for reopening borders and the tourism sector.
The best case scenario sees the country reopen borders by May, but the most likely scenario projects a July date for reopening the borders and restarting tourism. In the worst case, borders may only open by January 2021.
In a televised address Wednesday evening, President Ibrahim Mohamed Solih announced plans to reopen the country’s borders and restart its worst-hit tourism industry in July.
The coronavirus outbreak has hit the Maldivian economy hard, as travel restrictions and other preventive measures affect the country’s lucrative tourism industry, which contributes the bulk of the island nation’s state revenue and foreign reserves.
Before the pandemic, the government had been bullish about tourism prospects, targeting two million, high-spending holidaymakers this year after last year’s record 1.7 million.
However, tourist arrivals saw a year-over-year decline of 22.8 per cent in the first 10 days of March. Officials say the number of tourist arrivals to the Maldives could drop by half in 2020.
All international airlines have suspended scheduled operations to the Maldives, as the island nation enforced a blanket suspension of on-arrival visa in late March in a bid to combat the spread of the novel coronavirus.
Even before the visa suspension, the Maldives had closed its borders to arrivals from some of the worst-hit countries, including mainland China, Italy, Bangladesh, Iran, Spain, the United Kingdom, Malaysia and Sri Lanka. Visitors from three regions of Germany (Bavaria, North Rhine-Westphalia and Baden-Württemberg), two regions of France (Île-de-France and Grand Est) and two regions of South Korea were also banned from entering the country.
All direct flights to and from China, Italy, South Korea and Iran were also cancelled.
Cruise ships and foreign yachts were also banned from docking at any of the country’s ports.
With arrival numbers falling and the visa suspension in effect, several resorts across the Maldives had been closed.
Tourism has been the bedrock of the Maldives’ economic success. The $5 billion-dollar economy grew by 6.7 per cent in 2018 with tourism generating 60 per cent of foreign income.
However, the government is at present projecting a possible 13 per cent economic contraction this year — an estimated $778 million hit.
On March 8, Maldives reported its first cases of the novel coronavirus, as two hotel employees tested positive for Covid-19 at a luxury resort in the archipelago.
Eighteen more cases — all foreigners working or staying resorts and liveaboard vessels except five Maldivians who had returned from abroad — were later identified.
A six-case cluster of locals, detected in capital Male on April 15, confirmed community transmission of the coronavirus. Several more clusters have since been identified, bringing the total number of confirmed case in the Maldives to 1,371.
Four deaths have been reported and 144 have made full recoveries.
The Maldives announced a state of public health emergency on March 12, the first such declaration under a recent public health protection law.
The public health emergency declaration has allowed the government to introduce a series of unprecedented restrictive and social distancing measures, including stay-at-home orders in capital Male and its suburbs, a ban on inter-island transport and public gatherings across the country, and a nationwide closing of government offices, schools, colleges and universities.
Non-essential services and public places in the capital such as gyms, cinemas and parks have also been shut.
Restaurants and cafes in the capital have been asked to stop dine-in service and switch to takeaway and delivery.
A nationwide shutdown of all guesthouses, city hotels and spa facilities located on inhabited islands is also in effect.