| Written by Ajay Makan, on 16-08-2007 20:30 |
With referendums and resignations you could be excused for missing it, but on Tuesday the government launched their third “master plan” for the tourism industry, the lifeblood of the Maldives’ economy.
Among the optimistic predictions of a million tourists a year by 2011, there were conflicting messages about who would benefit from the predicted growth at Tuesday's elaborate launch ceremony.
President Gayoom promised the government’s priority will be to, “protect investors in the Maldives.” But Tourism Minister Dr Shougee said, “the main objective is for Maldivian people to have their say in the sector and reap its benefits.”
The document itself is framed reflects the same need to balance resort owners’ expectation of more power in return for further investment, with the demand of the public for a greater say in the tourism industry.
But in terms of commitments, resort owners are the clear winner.
While specific legal steps will be taken to protect investors, public empowerment has to make do with “initiatives” and “consultation.”
Investor Friendly
The ‘Third Tourism Master Plan” (TTMP) is the government’s industry blueprint for the next four years. It follows two other master plans, published in 1983 and 1996.
While the 1996 document offered a rhetorical departure from “, TTMP promises to actually specific legislation to empower business
The 1999 Tourism Act will be amended to attract investment. Resort leases will be extended from twenty-five or thirty-five years to fifty years, to encourage owners to “maintain quality of the resorts during the entire period of the lease.”
And “restrictions to the transfer of lease rights, prior to the development of the resort,” will be removed, allowing domestic and foreign financiers, with the capital to develop resorts, to buy out the winners of resort lotteries.
The legal commitments are a victory for the Maldives Association of Tourism Industry [MATI], a lobbying group led by the Maldives’ three leading resort owners, who have consistently called for the government to loosen shackles on the industry.
Power To The People?
Business friendly legislative initiatives will require the assent of the Majlis. But they represent firm commitments, which have not been matched when it comes to redistributing wealth and control of the industry.
The TTMP document is blunt about the power already exercised by resort owners.
“The present decision making processes are substantially influenced by the leading entrepreneurs in the industry,” its reads.
Noting resort owners, through MATI, are, “the only active association playing a major role in tourism industry,” it says, “mechanisms have to be established for broader consultations with the public at large.
Consultation is necessary when, “making decisions that are of national concern, such as the extension of lease periods.”
Yet the government has already proposed the extension of lease periods to parliament.
And the proposed consultative mechanisms sound toothless.
“A public-private sector consultation body,” will be established, but not till 2011.
“A mechanism to address and resolve labour grievances in the industry,” is envisaged this year, but there is no commitment to allow unions in the industry.
Innovative?
Earlier this year the Tourism Industry announced a wide ranging consultation on developing resorts on inhabited islands for the first time.
“Placing resorts and hotels on inhabited islands, would go a long way to increasing Maldivian employment in the tourism sector,” TTMP states.
But it warns of a potential threat to the reputation of other resorts, “if Maldivian communities are allowed to run tourism enterprises on inhabited islands,” as “the quality and standard of the tourism product of the country would decline.”
No commitments are made to explore the idea further. Instead the document appears to favour “cultural tourism;” encouraging tourists to visit island “community centres,” where residents can sell local produce for tourism dollars.
Uncontroversial innovations are also proposed, including boutique resorts, tergeted at niche markets, such as health and well being, and the “silver” market for retired holiday makers.
Déjà Vu?
The TTMP grapples with a number of issues addressed in the 1983 and 1996 plans.
In 1996 the , but the first resort is only set to open in Addu this year,.
The 1996 plan proposed a number of measures to reduce expatriate labour. But the TTMP says almost 50% of resort workers are expatriates, “who repatriate income,” a cause of “economic leakage.”
But unlike its predecessors, the TTMP adopts a pragmatic approach.
“Recognising that growth in tourism will inevitably lead to an inflow of expatriate labour,” it says, ”measures could be taken to encourage expatriate labour to spend more in the Maldives,” to prevent, “leakage.”
To encourage Maldivians into management positions on resorts, the government has capped expatriate employees at 50% on any single resort.
But it is offering little to ensure qualified Maldivians can take their place.
It accepts, “training has lagged far behind the needs of the industry,” but does not propose expanding the Malé’s Hotel Training School, an initiative of the second master plan.
Instead it will shift the problem, by “encouraging resorts and private sector institutions to begin training.
Independence
TTMP was compiled by Tourism Ministry staff, and its authors argue strongly for an enlarged budget for the ministry and more training for staff.
No commitments are made in the document, but a “Request will be made for [the Ministry] to be given an increase in funding that matches the implementation and monitoring needs of the TTMP.”
The ministerial team also acknowledges the contradiction between the Ministry’s “role as the regulatory authority,” of resorts, and the government’s shareholding interest in the Maldives Tourism Development Corporation, which was granted the right to develop fourteen resorts.
And, with cabinet ministers and politicians currently disputing ownership of the Biyadhoo resort in the Maldives press, TTMP recognises the need for a separate and independent statutory body to oversee the resort bidding process and leases.
Creating trust in the transparency of the bidding and lease process will be essential, if the government is to win public support for the TTMP’s proposal to increase the freedom of resort owners. Courtesy: Minivan News
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