Business
Maldives allows virus-hit tourism businesses to pay tax in local currency
Authorities in Maldives have allowed tourism businesses struggling due to the downturn caused by the coronavirus pandemic to pay the Goods and Services tax (GST) in local currency instead of US dollar.
The temporary relief measure is available for the GST collected from tourists between April 1 and September 30.
What is the GST?
GST is charged on the value of goods and services supplied in the Maldives.
The Goods and Services Tax Act makes a clear distinction between suppliers of tourism goods and services, and suppliers of other general goods and services.
For general businesses, GST is charged at six per cent and can be paid in Maldivian rufiyaa. Businesses in the tourism sector have to collect the GST at 12 per cent and pay it in US dollar.
Businesses collect the tax from customers and deposit the sum with the Maldives Inland Revenue Authority (MIRA) either monthly or quarterly.
MIRA had in April extended the deadline for GST payments for the first quarter of the year after capital Male was placed on lockdown to contain the spread of the coronavirus.
The new deadline falls on July 23.
The temporary relief measure follows similar steps taken by the Maldivian authorities to soften the blow of tourism businesses.
Resorts had been granted a lease rent deferral for the last six months of the year.
The Maldives is preparing to reopen its borders to visitors in July.
The country’s tourism ministry has drafted and invited comments from industry stakeholders on its own guidelines on reopening the borders.
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.
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.
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 2,094.
Eight deaths have been reported and 1,670 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 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 were also shut.
Restaurants and cafes in the capital were 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 was also ordered.
These measures allowed authorities to contain the outbreak.
More than half of the people who contracted the virus have recovered and daily recoveries have over taken the number of new infections detected per day.
The restrictions are now being eased in phases, with the second phase lasting at least until June end.
Minor Hotels, in partnership with a private equity fund managed by Ares Management, has announced the upcoming rebrand of Reethi Beach Resort as NH Collection Maldives Reethi Resort, set to re-open in Q4 2025 after an extensive renovation.
The 129-key property is set on a lush island in Hanifaru Bay within the Baa Atoll. Just a 35-minute seaplane flight from Velana International Airport in Male, the resort offers easy access to the atoll’s unspoiled beauty, home to manta rays, whale sharks, turtles, and an abundance of vibrant marine life.
Reethi Beach Resort will remain open until 25th April 2025, after which it will close for six months to undergo its transformation into NH Collection. The renovation, the most significant in the resort’s 25-year history, will include upgrades to the villas, dining outlets, and leisure facilities while preserving the lush island’s natural beauty.
NH Collection Maldives Reethi Resort will offer a mix of on-land and overwater villas that cater to the needs of a wide range of travellers. With 10 distinctive food and beverage outlets, including all-day dining venues, specialty restaurants, and bars, the resort will offer something for every taste. The resort offers diverse water activities in the Baa Atoll and its house reefs, including diving, snorkelling, fishing, and water sports. On land, guests can unwind at the spa, lounge by the pools, or stay active with tennis, badminton and squash courts plus a fully equipped fitness centre.
“We are excited to partner with Ares Management to introduce a fresh chapter for Reethi Beach Resort under the NH Collection brand. Renowned for its breathtaking marine life, this iconic destination will offer guests an unparalleled Maldivian experience, with enhanced offerings and sustainability at the forefront. We look forward to unveiling the reimagined NH Collection Maldives Reethi Resort in late 2025,” Puneet Dhawan, Head of Asia at Minor Hotels, said.
“For over 25 years, Reethi Beach Resort has been a sanctuary of tranquillity in the Baa Atoll, offering guests a truly authentic Maldivian retreat. We believe our collaboration with Minor Hotels will redefine this legacy, elevating the resort’s appeal while preserving the essence of its natural beauty and heritage. We are excited about our shared future and what we will accomplish together,” Kieran Bestall, Managing Director in Ares Asia at Ares Management, added.
The premium brand property will join Minor Hotels’ two resorts in the Baa Atoll – Anantara Kihavah Maldives Villas and Avani+ Maldives Fares Resort – offering guests a more accessible way to experience one of the Maldives’ richest marine ecosystems. NH Collection Maldives Reethi Resort will be Minor Hotels’ ninth property in the Maldives and the second NH Collection property, alongside NH Collection Maldives Havodda Resort, which opened in 2023 in Ghaafu Dhaalu Atoll.
BBM’s recent collaboration with Vismark Food Industries brought Southeast Asian culinary innovation to the Maldives, with a series of successful live cooking demonstrations across 11 resorts. Vismark, known for its commitment to high-quality food solutions, specializes in developing premium ingredients and ready-made culinary products.
Led by Chef Samson Lin (Head of Culinary Development) and Chef Kent Lim – at Vismark lead the demos that showcased dishes like Dumplings, Pau, and Satay capturing the imagination of resort chefs eager to integrate these flavors into their menus.
“The response from the chefs was phenomenal,” remarked Chef Samson Lin. “Their passion for learning and embracing new flavors truly stood out.”
BBM’s Resort Sales team facilitated the sessions, ensuring seamless engagement between the chefs and the culinary experts. Each resort’s participants were eager to adapt these Southeast Asian flavours into their own kitchens, with practical takeaways and a renewed sense of culinary creativity.
Reflecting on the event’s success, AVS Subrahmanyam, Chief Operating Officer of BBM, said: “This partnership with Vismark is a testament to our commitment to bringing world-class culinary experiences to the Maldives. The level of engagement from the resort chefs exceeded our expectations, and we’re excited to see how these new flavours will enhance guest dining experiences moving forward.”
Chef Kent Lim shared his thoughts, adding, “The interaction and feedback from the chefs were invaluable. They were not only open to new ideas but also committed to perfecting them for their guests.”
The demonstrations, held from September 8 to 19, 2024, provided participants with fresh inspiration. The overwhelmingly positive feedback from the chefs has set the stage for these Southeast Asian flavours to become a standout feature in resort dining across the Maldives.
BBM’s continued efforts to collaborate with global culinary experts like Vismark reflect their dedication to pushing the boundaries of fine dining in the Maldives, elevating resort experiences one dish at a time.
Business
Hotelier Maldives GM Forum 2024 to host panel on leveraging Maldives’ unique selling points
The Hotelier Maldives GM Forum 2024, scheduled to take place on September 19 at CROSSROADS Maldives, will include a panel discussion, titled ‘Leveraging the Maldives’ Unique Selling Points.’ This session at the GM Forum, the largest gathering of hospitality professionals in Maldives, will focus on how the Maldives can maintain its position in the competitive luxury travel market by capitalising on its unique attributes.
The panel will be moderated by Aishath Ihuma, Director of Business Development at Reollo Investments. The discussion will feature a diverse group of experienced professionals from the hospitality industry, including:
- Rajesh Mehta, Chief Business Officer of Ooredoo Maldives
- Ibrahim Inad, Director of Sales & Marketing, Oaga Resorts
- Alexander Treager, General Manager of SAii Lagoon
- Andrew Jansson, Cluster General Manager of Centara Mirage Lagoon Maldives and Centara Grand Lagoon Maldives
The session aims to address several key questions surrounding the Maldives’ position as a luxury destination. Panelists will discuss what they believe are the top three unique selling points (USPs) of the Maldives, and how the country can differentiate itself from other luxury destinations within the Indian Ocean and beyond.
The discussion will cover marketing strategies for resorts to effectively showcase their unique offerings to attract high-end travellers, including the role of digital marketing. The panelists will share insights into the unique experiences and services that set their respective resorts apart and how they align with the luxury expectations of their clientele.
The session will also explore the challenges faced by resorts in maintaining and promoting their USPs and how the Maldives can overcome these challenges to continue attracting luxury travellers. Looking ahead, the panelists will discuss emerging trends in luxury travel and how the Maldives can adapt to stay ahead of the competition.
The discussion will conclude with closing remarks from the panelists, followed by an interactive Q&A session with the audience. This panel promises to provide valuable insights into how the Maldives can continue to thrive as a premier luxury destination.
This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.
Sponsors and partners of GM Forum 2024 include:
- Ooredoo Maldives: Digital Partner (Title Sponsor)
- Bestbuy Maldives (BBM): Silver Sponsor
- Dhivehi Insurance: Silver Sponsor
- Fuel Supplies Maldives: Silver Sponsor
- Maldives Airports Company Limited (MACL): Silver Sponsor
- Manta Air: Aviation Partner
- Male’ Aerated Water Company: Beverage Partner
- Atmosphere Wellness: Wellness Partner
- Souvenir Marine: Transport Partner
- Printlab: Printing Partner
- CROSSROADS Maldives: Venue Partner
- Lights Out: Coverage Partner
- Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives
John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event.
Etienne Ng, Regional Director for Southeast Asia at Weixin Pay; Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts; Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT; and, Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL) will also be featured speakers.
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