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UN body suggests tax breaks, operational changes to soften blow on virus-hit Maldives tourism workers

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Authorities in Maldives should provide tax incentives to tourism businesses and restructure the existing model of resort operations to minimise the impact on people employed in the island nation’s main economic sector, a UN body has said.

In an assessment of the impact of the coronavirus pandemic on the tourism industry, UNDP recommended the government to review tourism taxes, charges and fines.

The government should also defer payments, so that resorts can manage cash flow and retain employees until operations are back to normal, it said.

“The financial relief package should have specific mitigation packages to stimulate demand, to retain jobs, incentivise and protect the most vulnerable people and sustain the self-employed,” the report read.

“Tax incentives should prioritise those resorts that are achieving full retention of employees, those that will invest in skill development of Maldivians in the resort work force and those that invest in diversifying the workforce to include women’s participation.”

The government had already deferred lease rent payable by resorts for the rest of the year.

Reduce on-site living

Meanwhile, UNDP recommended the government to take steps to restructure the existing resort operation model in the ‘new normal’ and identify emerging employment opportunities within this alternative model.

The government was asked to reduce onsite employee living by establishing living and commuter facilities between resorts and neighbouring inhabited islands.

“Businesses and the government can jointly invest in developing selected islands in a given atoll with housing/accommodation, schooling, day care health and training facilities for resort employees and their families. This can unlock employment opportunities for those with barriers to on-site resort living such as women,” the report said.

“Investments in employee families can help to increase motivation, productivity and minimise employee turnover for resorts. This new model will be conducive to managing health and safety standards, social distancing and exclusivity of resorts for visitors.”

UNDP also suggested that the government look into ways to take operational aspects of resorts such as human resource management, procurement and purchasing, finance, administration and reservations online.

“By taking these departments online, resorts can minimise on-site employees, increase productivity and engage more diverse groups in employment including women and persons with disabilities that have barriers to living onsite,” the report said.

What has been done so far?

An MVR 2.5 billion stimulus plan, announced in March, includes MVR 1.55 billion ($100 million) in emergency loans for businesses to meet short-term working capital needs.

Under the government’s stimulus plan, emergency loans for businesses with an annual turnover of less than MVR 10 million ($649,000) and self-employed individuals are arranged through the SME Development Finance Corporation (SDFC), a state-owned financial institution exclusive for small and medium enterprises.

Emergency loans for resorts as well as local businesses with a turnover of over MVR 10 million are arranged through Bank of Maldives (BML).

Both SDFC and BML are accepting applications for the emergency finance.

The unsecured loans by BML and SDFC come with a six-month grace period and a repayment period of three years. Interest is charged at six per cent per annum, but no interest is charged during the grace period.

The government initially mandated all businesses that avail the emergency finance to retain their local workforce and pay salaries.

However, the government has since relaxed the eligibility criteria to give “a second chance” to businesses that failed to secure the finance in the first round of applications.

Under the relaxed rules, businesses that agree to rehire axed local employees and give a monthly salary of at least MVR 5,000 ($322) will qualify for the emergency loan scheme. Those that pledge to ensure employee pay will not fall below MVR 5,000 can also apply. =

In addition to the emergency finance, the government’s stimulus plan is complemented by a package of financial measures, including a six-month moratorium on principal and interest repayments for personal, business and housing loans sanctioned by commercial banks.

The government is also subsidising utility bills.

Those that lose jobs due to the coronavirus pandemic will also be paid unemployment benefit for a period of three months.

Meanwhile, the central bank has announced a $150 million facility for banks to ensure healthy foreign currency reserves.

The facility is arranged through a $400 million stand-by currency swap signed by the Maldives Monetary Authority (MMA) and Reserve Bank of India (RBI) last year, he said.

If required, minimum reserve requirement of banks will also be slashed from 10 to five per cent to allow banks to increase lending.

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.

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.

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.

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.

The Maldives is preparing to reopen its borders to visitors in July.

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 1,901.

Eight deaths have been reported and 763 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.

Photo: Mihaaru News

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SIX & SIX PRIVATE ISLANDS to introduce 6 resorts in Maldives

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SIX & SIX PRIVATE ISLANDS has announced the first phase of its plan to develop six resorts in the Maldives. Co-founded by CEO Laith Pharaon, the company aims to establish a hospitality model based on personalised service, artistic design, and a cosmopolitan lifestyle.

The initial two resorts are set to open in South Malé Atoll in 2025 and 2026, with each property featuring unique experiences. All resorts will adhere to a shared philosophy of tailoring stays to individual guest preferences.

Speaking about the company’s approach, Pharaon highlighted the focus on enhancing the guest experience by prioritising time, space, and freedom. He stated that removing unnecessary elements allows the company to deliver a guest journey aligned with expectations.

Director of Operations Marc Gussing shared insights into the planned offerings, which include personalised services beginning before guests arrive. Gussing, with nearly 15 years of experience in the Maldives, emphasised the aim to cater to guests seeking customised experiences that align with their preferences.

SIX & SIX has outlined its commitment to sustainability through ambitious environmental and social goals. The resorts will incorporate solar power, zero-waste practices, support for local produce, reef rehabilitation projects, and community programmes. These efforts aim to preserve the Maldives’ natural environment and contribute to its local communities.

The first resort, RAH GILI MALDIVES, will open in late 2025. Located in South Malé Atoll, the resort is near a dolphin sanctuary and will offer 74 pool villas, including 38 overwater options. Villas will range from 120 to 200 square meters, each featuring private pools. Guests will have access to dining options, cultural activities, and social spaces.

In 2026, DHON MAAGA MALDIVES will follow as an ultra-luxury resort. The property will include 31 overwater and 25 beach villas, with sizes ranging from 250 to over 400 square meters. Features include private pools, wellness facilities, and fine dining. The resort also plans to offer private-jet transfers and a wine cellar, aiming to deliver exclusive experiences.

SIX & SIX PRIVATE ISLANDS is positioning itself as a key player in the Maldives’ hospitality sector with its blend of tailored experiences and sustainability-driven practices.

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Coca-Cola and MAWC: Responsible business partner for Maldives

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Ahmed Rasheed and his fellow students from K. Thulusdhoo Island School love football. Several days a week, after school, they gather at the island’s futsal ground, playing passionate, spirited matches. Dividing into teams, often based on favourite clubs or national teams, they bring the game to life, with Ahmed always choosing to support Brazil. Football has become a way of life, a shared joy that unites the youth of Thulusdhoo in friendship, teamwork, and competition.

However, their beloved futsal ground had started to fall apart. The artificial turf was worn out, creating uneven patches that made the surface risky to play on. The metal fence was rusted and broken in places, and the floodlights were old and dim, often flickering out just as the players prepared for an evening game. These conditions led to injuries and discouraged evening play, limiting what was one of the few leisure activities available on the island. With growing concern, the players turned to the school and island council, fearing the pitch would soon become unusable.

In response, the Thulusdhoo Island Council reached out to Male’ Aerated Water Company (MAWC), the local bottling partner of The Coca-Cola Company. MAWC, with its long-standing presence in Thulusdhoo, stepped in to sponsor the renovation of the futsal ground. With the company’s support, the turf was replaced , the fencing repaired , and modern, bright floodlights installed. This simple, effective upgrade brought new life to the futsal ground, creating a safe and inviting space for youth and residents to play. “Now we can play football without any worries or injuries,” said Ahmed. “This means a lot to us as it’s one of the few leisure activities on the island.”

Lasting Commitment to Community

This futsal ground renovation is just one example of MAWC’s sustained and heartfelt commitment to Thulusdhoo. Since the Coca-Cola bottling facility was established on the island over 30 years ago, MAWC has engaged in various projects that directly address the needs and well-being of the local community. Through its Corporate Social Responsibility (CSR) initiatives, the company has invested in education, infrastructure, water access, and recreational spaces for the people of Thulusdhoo.

According to Milind Derasari, Chief Operating Officer of MAWC, this commitment goes beyond business. “We’re proud to be a part of Thulusdhoo and are dedicated to making a positive impact here. Supporting the community enriches both our relationship with Thulusdhoo and our own business. We see this as an opportunity to grow alongside the island, contributing to its future and development,” Derasari explained.

Providing Essential Water Access

One of MAWC’s most essential contributions to Thulusdhoo has been addressing the island’s water scarcity issues. Since 2013, MAWC has provided free drinking water to the residents, meeting over 12% of the island’s total water demand. The company has set up and continues to maintains five strategically placed water distribution points at key locations, including government offices, the local school, and the hospital. This initiative has a tremendous impact on the local population, offering accessible, clean drinking water at no cost, which alleviates the island’s water challenges while supporting health and hygiene of the citizen’s and communities living in the island.

In addition to providing this vital resource, MAWC has also taken the opportunity to educate the community about water conservation. The company organizes awareness campaigns, encouraging residents to use water responsibly and highlighting the importance of water quality. This dual approach—offering both physical access to water and education about its conservation—has fostered a deeper understanding of sustainable resource use among residents, further strengthening the community’s relationship with Coca-Cola and MAWC.

Investing in Education and Infrastructure

MAWC’s commitment to Thulusdhoo’s development is evident in the wide range of projects it has funded over the years. In 2016, the company made a significant contribution of MVR 500,000 to the Thulusdhoo Island Council, designated for constructing a new pre-school. This investment in early education created an improved learning environment for over 100 children and their families. The new pre-school building was equipped with spacious classrooms, colourful furniture, and modern facilities that provide a nurturing space for young learners.

Two years later, MAWC further demonstrated its community-focused values by contributing funds to develop a children’s park on the island. The park, which includes a playground, garden, and fountain, has become a beloved recreational space for the island’s children. With the installation of fencing walls and seating areas, the park provides a safe, enjoyable space where families can gather and children can play freely. It has since become a central part of island life, with families often visiting together to enjoy the beautiful surroundings and spend quality time outdoors.

Supporting the Island Council’s CSR Initiatives

In addition to direct contributions, MAWC also supports Thulusdhoo Island Council’s Corporate Social Responsibility (CSR) fund through regular monthly donations. This fund enables the council to allocate resources toward a variety of local development and welfare projects. With MAWC’s support, the CSR fund has been used to build a library, renovate a mosque, organize sports festivals, and support other essential community initiatives.

Aslam Moosa, President of Thulusdhoo Island Council, praised MAWC’s contributions, noting that “MAWC has been a consistent and reliable partner for us. They have supported our efforts to create a vibrant, healthy community, and we’re grateful for their generosity and the positive impact they have on our island. We look forward to continued collaboration with them in the future.”

Building a Deeper Partnership

Through its sustained community engagement, MAWC has become woven into the fabric of Thulusdhoo’s community life. The company’s comprehensive CSR program, which spans education, infrastructure, sports, water access, and cultural events, has not only uplifted the community but has also deepened the relationship between Coca-Cola and Thulusdhoo’s residents. For the people of Thulusdhoo, Coca-Cola is not just a brand; it has become a caring local partner, invested in the island’s progress and well-being. This strong partnership aligns with Coca-Cola’s broader mission to refresh the world and make a difference, demonstrating how businesses can create meaningful change through corporate responsibility.

“We’re committed to strengthening our ties with Thulusdhoo and supporting its prosperity,” added Derasari. “We see this island as our home and want to make it a better place for everyone. By investing in local initiatives and improving quality of life, we hope to continue making a positive impact here.”

In the eyes of the community, Coca-Cola and MAWC’s ongoing dedication to Thulusdhoo reflects a genuine, heartfelt commitment to the island’s development. As the partnership continues, both the residents and the company look forward to new projects and initiatives that will further enhance the quality of life on Thulusdhoo, fostering an enduring bond and a brighter future for the entire community.

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Atmosphere Core appoints Maurice Van Den Bosch as GM of RAAYA by Atmosphere, Milan Mookerjee as VP of Human Resources

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International hospitality company Atmosphere Core has announced the appointment of Milan Mookerjee as Vice President of Human Resources.

This appointment reflects Atmosphere Core’s ongoing commitment to enhancing guest experiences and fostering a people-centric culture across its portfolio of three brands and nine resorts.

Veteran Human Resources leader, Milan Mookerjee will oversee talent management and employee growth initiatives across the Atmosphere Core’s resorts in the Maldives. With over 15 years of industry experience, Milan is a seasoned professional known for aligning HR initiatives with business goals and fostering a human-centric culture.

Reflecting on his approach to human resources, Milan said, “Leadership is a privilege that we owe to our team. Intentionality with direction and purpose drives results, and I am committed to fostering a culture that empowers our people to grow and succeed. In hospitality, success begins with a motivated, engaged workforce, and I believe in creating an environment where employees feel valued, supported, and inspired to deliver exceptional guest experiences. This includes investing in continuous learning, nurturing talent, and promoting a strong sense of belonging within the team.”

Before joining Atmosphere Core, Milan served as Head of Human Resources and Training at Encalm Hospitality Pvt. Ltd., where he led HR and training functions to drive business growth. He has also held several HR leadership roles at prominent companies in India, with a proven ability to develop talent and design learning programmes tailored to business needs.

Meanwhile, Maurice Lucien Van Den Bosch recently returned to the Atmosphere Core family as General Manager of RAAYA by Atmosphere.

Born in Australia, Maurice Lucien Van Den Bosch draws from the country’s renowned laid-back yet dynamic culture in his leadership style, fostering a spirit of inclusivity, adventure, and warm hospitality. He brings over 24 years of expertise in resort management, with a demonstrated ability to exceed profit targets, cost-effectively develop new projects, and lead culturally diverse teams with motivation and efficiency.

Maurice’s extensive experience includes leadership roles at some of the world’s top hospitality brands in the Maldives, Sri Lanka and the Caribbean. A familiar face within the Atmosphere Core family, Maurice has served as General Manager at both OZEN LIFE MAADHOO and Atmosphere Kanifushi.

As the General Manager of RAAYA by Atmosphere, Maurice will leverage his deep understanding of the brand to lead the resort with a focus on anticipating, crafting, and elevating guest experiences. “The culture and hospitality inspired by the Joy of Giving resonate deeply with me, and this shared value brings me back to the Atmosphere family”, Maurice said. “At RAAYA by Atmosphere, we are creating a castaway island experience of choice, a guest experience like no other, with a fine balance of escapism and energy. And I look forward to foster a collaborative working environment so that we create unforgettable moments for our guests.”

Ashwin Handa, Senior Vice President of Operations at Atmosphere Core, emphasised the importance of a strong leadership team. “At Atmosphere Core, we foster a people-first culture built on trust, collaboration, and mutual respect, ensuring that every employee takes pride in their work. This dedication extends to curating experiences that guests cherish and return for. Maurice’s deep industry expertise and understanding of our brand, combined with Milan’s people-centric approach, will significantly enhance our operations and guest satisfaction across our resorts”.

Atmosphere Core is a dynamic international hospitality company with three distinctive lifestyle brands, THE OZEN COLLECTION, COLOURS OF OBLU, and Atmosphere Hotels & Resorts. The company operates nine resorts in the Maldives and has a strong pipeline of one resort in the Maldives, one resort in Sri Lanka, and fourteen hotels and resorts across India – all set to open within the next three years. Distinctive design, an authentic sense of place, inspiring service styles, and the freshest and finest cuisine lend a unique flavour to every Atmosphere Core property.

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