Maldives tourism sector embarks on its next transformation INVESTMENT IN TOURISM
Today the Maldives is a world-class holiday destination, but just a few decades ago tourism on the island was virtually non-existent. Propelled by vision and innovation, the archipelago is now undergoing another major shift, targeting lucrative new markets and boosting critical infrastructure
When the first tourists came to the Maldives in the 1970s, the only way to contact the beautiful but isolated island-nation was via Morse code. The Maldivian embassy in Sri Lanka would send the message through the telegraph office in Colombo to the tour operator, and the reply would come through the same channel. There were maybe four or five mechanised boats in the country, a ship bringing basic staples came once couple every months, and infrastructure was virtually non-existent.
But instead of investing in the same technology as in neighbouring countries, the Maldives went one step beyond telephone lines towards satellites –a move that made it a regional leader in communication. Alongside that, clever investors added the necessary transportation infrastructure and created the first gorgeous over-the-water-resorts on private islands.
Not only have those investments paid off for the tourists lucky enough to experience the country, they produced major returns for investors and positive trickle-down effects on the local economy. Tourism now directly contributes to nearly 22% of the Maldives' GDP.
"We thought we were just doing something small but what has happened is truly amazing," says Hussain Afeef, Chairman of Crown Company and one of the pioneers of tourism in the Maldives.
Today, the Maldives is undergoing its next major revolution, with the opportunity to multiply its market share by a factor of five over the next years. After seeing an average of 10% year-on-year growth in the last decade, private and public sector leaders agreed that the airport had become a bottleneck. Operating at full capacity, the main international airport can bring in 1.5 million passengers per year. That's why the government is opting for a massive airport expansion to increase passenger capacity by 500% by 2019.
This opens up a world of opportunity. Not only in ultra-luxury resorts, where investors are limited only by their imaginations on private island resorts, but also in mid-range guesthouses. This gives the Maldives the ability to tap into significant new tourism segments, such as independent travellers or budget travellers, who previously had limited access to the country.
"Investors who put in their money today are going to be glad that they did so 10 years down the line because this government's focus is on giving them a good return on their investment," says Maldivian Tourism Minister Moosa Zameer.
The Rise of Halal tourism
Another key feature of the Maldives' tourism transformation is targeting new niche sectors, including Halal tourism, which has a particularly strong potential for growth in the Maldives. As a 100% Muslim nation, it is the natural choice for the rising segment of halal tourism, which has a steadily growing worldwide value of approximately $250 billion.
Not only is the Maldives conveniently connected to the Gulf countries, offering quick and direct flights, it also has a mosque on every inhabited island, a wide range of halal products, and family-friendly resorts that can guarantee privacy.
And while these features ensure that Muslim visitors will have comfortable vacations at the moment, the government is also exploring partnerships with foreign investors to develop properties that are fully Sharia-compliant.