Tourism Development in the Maldives

This assignment delves into the complexities of tourism development in the Maldives. Students are tasked with analyzing the multifaceted impacts of tourism on the island nation, considering its economic benefits, social consequences, and environmental challenges. The analysis draws upon a range of academic resources, including peer-reviewed journals and reports, as well as online sources like official statistics and resort websites.

TOURISM CONCEPTS
AND ISSUES

An Island Destination - Maldives
Tourism can be defined as a generic term which ought to encompass the concepts of both
demand and supply from different perspectives, as known across the world. It can be
characterized as those activities which are undertaken by one of the major stakeholders of this
industry, i.e. the visitors. These activities primarily include making a visit to another destination
which is outside the usual surroundings. The fundamental purpose behind undertaking these
activities by the visitor could be leisure, vacation, recreation, business, education and others. The
scope of the term is much broader to include varied aspects of tourism, and not just travelling
leisure. The concept of tourism has undergone a drastic transformation over the years, and has
emerged as a way of living for a certain class of people. In the ancient times, the concept was
followed more in the form of migration or travelling for specific purposes. For instance, for
commerce, official tasks, exile, religious reasons, military reasons and so on. It can be inferred
from these varied purposes, tourism in those times was undertaken to fulfil specific social roles,
as against the present times. Travelling for leisure or vacations, were concepts unknown to that
generation of people. Since then the concept has evolved into a completely new concept, and is
attached various complex issues and trends. The modern tourism industry encompasses different
and diversified destinations which attract tourists from all over the world.
The Tourism industry of Maldives constitute to be one of the largest economic industry.
The primary rationale behind the same is receipt of increasing amount of foreign exchange
through an increased number of tourists arriving in the nation. Moreover, it has also generated
diversified employment opportunities, specifically in the tertiary sector. These positive trends
can be credited to the archipelago of Maldives. The nation is home to around 1000 islands, and is
accompanied by absolutely beautiful white-sand beaches as well as stunning underwater life.
Maldives is known to be so perfectly beautiful, that it is difficult to extract an error out of it. This
can be evidenced by a single fact that over a million tourists visited this tiny and remotely
located nation (Carlsen and Butler, 2011). The unrivalled luxury and the absolute serenity of the
place has earned the title of Indian Ocean Paradise for the place. The local culture of the nation is
highly diversified and has an influence of South Indian, Arab and Sinhalese on the people.
However, the predominant religion of Sunni Muslim is followed all over the country. Though
there is a ban on consumption of alcohol, drugs and pork, owing to the religious sentiments, the
resort islands have been allowed to serve the same to their international tourists.
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The tourism industry of Maldives reached a record by receiving tourists of around
110,705 in number in the month of February, 2015 alone. This boost in the tourism industry has
accounted for an increase of about 0.7%, in comparison to the numbers in 2014. The nation has
developed itself significantly to cater to the needs of increasing number of tourists, and in
pursuance to the same it has a registered capacity to accommodate around 31,918 tourists
(Inbound Tourism Statistics in the Maldives, 2012). These accommodations are inclusive of
resort islands, hotels, guest houses and live-aboard floating beds. All these services are registered
with MOTAC (Ministry of Tourism, Arts and Culture), and are required to submit their data on a
regular basis (Kundur, 2012). However, it has been observed that Resorts remain to be the most
preferred place of stay for the tourists. The idea of resorts existing in Maldives is extremely
unique, as it follows the concept of one island one resort. This attracts the maximum tourists and
enable them to enjoy the true beauty of the island nation. In pursuance to further promote
tourism, the nation has a very easy visa policy, which is given on arrival for a period of 30 days.
However, this provision of free visa is subject to producing valid and authenticated travel
documents.
The tourism industry alone accounts for about 28% of GDP, and more than 90% of
income of government arises from import duties and taxes imposed on tourism related elements.
More than 60% of the foreign exchange receipts can be credited to the tourists. The second
largest sector which supports the economy is that of fishing, and also constitutes to be one of the
attractions for the tourists. In the year 1989, Maldivian government introduced a reform in the
economic sector by eliminating import quotas, and increasing opportunities for the private sector.
Subsequent to the same various regulations were also liberalized for allowing increasing number
of foreign investments. However, agriculture and manufacturing industry still constitutes to be
very small in size, owing to the geographical constraints. One of the primary concerns which has
been haunting the Maldivian government is that in connection to impact of increasing erosion as
well as global warming. The maximum area of the nation is just 1 meter above the sea level, and
is likely to be submerged if these trends are not controlled.
The history of tourism industry of the Maldives can be traced back to the year 1972. One
of the interesting facts to be noted is that in and around 1960s a mission of UN focusing on
development visited the nation and concluded that the islands are not suitable to be visited by
tourists (The History of Tourism in Maldives, 2012). Contrary to this conclusion of the UN
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mission, the commencement of this industry was marked by setting up the first resort, and a visit
from the first set of tourists. Since then the tourism industry has flourished, to reach the present
levels. In the initial times there existed only two resorts with a capacity of around 280 beds. This
capacity has enormously increased to house over 105 resorts, in addition to other accommodation
options. The number of tourists visiting a nation, over the past few decades, has been
continuously rising. A new trend of island guest houses also began in the year of 2009
(Scheyvens, 2011). This change was a consequence of an amendment in the relevant regulations
which earlier restricted the stay of tourists on privately owned resorts. In pursuance to this
change the tourists were enabled to enjoy and experience the lives of local people and stay
amongst them.
One of the landmark trends which changed the manner tourism industry functions in the
nation was that of water bungalows. Introduced in the region sometime in 1990's, these
establishments were built over water, and gave the tourists a magnificent experience of the island
nation. This concept was first introduced by the French Polynesian island, in 1960s. Taking
inspiration from these bungalows, the concept also became popular in Maldives. The exterior of
these bungalows is usually framed in the style of traditional houses in villages, and are connected
to the beaches and the prime resort area through a bridge. Currently, these overwater bungalows
are popular in the name of Villas, which offer luxurious stay to the tourists, with a picturesque
view. Hence, these are considered as dream destination for many, and the attributes of seclusion
from the main land amount to be one of the biggest appealing factor. Apart from this, the
unbelievably idyllic location of these villas, accompanied by personalized services in an
unobtrusive manner formulates to be another prime reason for attracting tourists from all over the
world. It is interesting to note that there exists more than 5000 overwater bungalows across the
world, and Maldives accounts for about two-third of the number. This number is inclusive of 80
private island resort, with a range of facilities starting from 3-start.
One if the most important product which the Maldives tourism industry has to offer to the
world is that of its blue ocean and the stunning white beaches. This natural beauty is
accompanied by an ideal weather, supporting all kinds of water sports. Another interesting
product which the nation offers is that of tropical resorts. These resorts are based on one single
privately owned island, with no locals or houses. The population of these islands is completely
comprised of visitors and the workforce. These resorts have their own house reef which
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essentially is a coral garden as well as a natural aquarium. This close access to the natural coral
reefs has attracted a lot of criticism. Zubair, Bowen and Elwin (2011) have noted that the
authorities of Maldives have been promoting and practising the concept of ecotourism. In
pursuance to the same the resorts and the local people have adopted the practice of recycling the
waste as well as the heat produced from electricity. Moreover, the government has enacted
varied laws to ensure promotion of ecotourism, and not harming the beautiful life existing under
water (Zubair, Bowen and Elwin, 2011).
However, it has been noted by Kundur, (2012), that the nation in its drive to promote
tourism has failed to protect the local population of sharks, which has witnessed a sharp
decrease. Moreover, it has also been observed that this shark population has even completely
disappeared in certain areas. The author has credited this to the business of exporting fins to
other nation of Asia (Kundur, 2012). The hunting of sharks is undertaken primarily for their fins,
which are then exported. In pursuance to the same the involved hunters amputate the fins from
live sharks, and then throw them back into the waters. This cruel act of making money, in-spite
of various laws prohibiting the same, has been condemned to a large extent. Hence, the depleting
natural resources and the beauty of the nation has been a critical concern for various
environmentalist. In order to combat the same, one of the local entities initiated an ambitious
program to protect the corals from further damages. In pursuance to the same they have re
implanted the damages areas, have installed coral frames to protect the coral reefs from further
damage. In this manner the tourists can view the beauty of coral, without causing harm to their
existence.
The nation of Maldives follows a very unique concept of developing an entire island into
one resort area. These resorts are developed in a manner that these are inclusive of all facilities
within that area, and the tourists are not required to move out of that area. The population of
these islands is primarily comprised from the tourists and the workforce providing the facilities.
The Kurumba resort is the initiator of this trend, and is the first resort opened way back in the
year 1972. The consequent developments and reconstructions finally ended in the year 2003.
Since then it has emerged into resort which is completely distinctive in its style and can be
characterized as absolutely grand. It is located at a distance of about 15 minutes from the touch
down. The name of the resort has been derived from the coconut trees, which can be seen
growing in abundance in Maldives (Kurumba Maldives – The Island, 2017). Apart from the
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beautiful and magnificent location, the resorts in Maldives also offers tropical gardens including
an orchid nursery, which have been nurtured in the most loving manner. The resorts are spread
over the entire area of circular islands, and have developed a shaded path all along the periphery.
This beauty is further enhanced by the intimate white beaches along with the eco-breakwaters
made out of weathered coral. In order to accommodate the increasing number of tourists in the
nation, the resorts are comprised of around 180 bungalows as well as villas across the entire
island. It is interesting to note that these islands have a wide variety of accommodations,
including the most luxurious of the stays.
The ancient resort of Kurumba has come a long way from the times in 1972 when it
comprised of 30 rooms, which were also made out of local materials, coral stones and the roofs
from the palm thatch. Contrary to the current status of being the cosmopolitan island, with a
broad range of choices in terms of accommodation, restaurants, entertainment, social events and
many such activities. The humble origins of the resort when it was capable of accommodating
around 60 guests in a month, has evolved to the present situation of housing 14,000 visitors. The
shift has been a drastic in terms of a management comprising of some founding friends to a staff
comprising of 450. The location of the resort has been chosen keeping in mind the proximity
from airport, and with time has constantly expanded to accommodate an increased number of
tourists (Becken, Hay and Espiner, 2011). It is interesting to note that some of these resorts have
been developed in the style of an authentic tropical village, along with the comforts of a hotel.
The development has been undertaken from the perspective to cater to the needs of international
clients, and is an all inclusive resort. In the recent past, the island resorts have completely
transformed to satisfy the demands of the modern times. In pursuance to the same, the resorts
evolved with world class facilities, with additional offerings in the form of Royal Residence,
Presidential Suites, Villas and many such rooms. The evolution of this resort can be
characterized as a result of natural growth, and a constant perseverance, along with dedicated
services (Ponting, 2014). Over the years the resorts have grown into grand hotel, which can be
quoted as a benchmark in terms of the hospitality it provides. Some of the specific products
which these resorts make available for the clients are scuba diving and water sports, excursion,
nightly entertainment, wedding venues and other programmes. The resorts provide another
exclusive product of Island dining, wherein the guests are allowed to sit beside the blue waters
and enjoy their meals amidst the magnificent surroundings.
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The operation of resort at such a grand level, as well as the proximity of the guests with
the natural resources, specifically the life under water, has been a major point of concern for
various environmentalists. In pursuance to the same the management of resorts have been
criticized to a large extent for disturbing the ecology and destroying the natural resources. On the
contrary, it has been observed that the resort has undertaken varied CSR activities and invested
efforts to preserve the natural resources. One such activity is that of operation of Kurumba
Recycling Centre (KURECT) which is a recycling centre, primarily engaged in processing the
kitchen waste, paper, plastic and glass (Cagua and et. al., 2014). Through this medium the
management of the resort has ensured that all the wastage generated from the operations and
activities at Kurumba are completely processed and not directly disposed off in the waters.
Moreover, it is also engaged in Majaa Recreation, which is engaged in imparting education to the
guests in respect to conservation of marine environment. Hence, through such activities the
Kurumba Resorts has ensured that they reduce their footprint, and enable others to act in a
cautious manner. It is understood by the resort that the most fragile natural resource of coral is
under imminent danger, and that every effort shall be undertaken to preserve the same.
The capital city of Male is both an island destination and a cosmopolitan city. Around
one-third population of the nation reside in this city, and can be tagged as one of the most
populous city of the nation with around 106,000 people currently located in the city. It is
interesting to note that the city has the potential to attract a huge number of tourists every year,
from across the world. The city encompasses highly impressive infrastructure, vibrantly rich
culture and the grandeur of the marvellous skyline (Evans, Stonehouse and Campbell, 2012). It
offers a unique culture of cosmopolitan style combined with laid back islander roots. The local
language of this city is Maldivian, but there exists many other dialects, Malé being one of the
most common of all. Though, in ancient times Buddhism was also practised in Maldives, Sunni
Muslim is the most widely accepted religion in the modern times. The impressive skyline of the
city is dominated by candy coloured skyscrapers, and the artificial beaches attract increased
number of people towards the blue waters. Moreover, the city is also rich in its history, and
therefore is comprised of different historic sites which have pushed tourists from across the
globe. The island city is spread over a length of 1.7 kilometres and width of about 1 kilometre,
but still carries a population of approx. 100,000 people. These statistics have made the city as
one of the most densest city of the world. One of the benefits which arise from this fact is that
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the entire city can be walked through in about an hour. Thus, tourists find the place extremely
comfortable and accessible. The contribution of the tourism industry to the income levels of the
city can be accounted for about 10 percent, and is witnessed with high level of spending from the
tourists. Another interesting fact which has been witnessed is in relation to the number of people
employed by this industry, which is around 13 percent of the employed population of the city. It
is predicted that these figures ought to rise further in a positive direction as the tourism industry
has been showcasing a constantly upward moving graph (Agrusa, Hussain and Lema, 2012).
One of the most interesting and popular sights which the city offers is that of Hukuru
Miskiyy, also known as the Friday Mosque. It represents the marvellous architectural styles
which represents the richness of historical times of the region. The intricate details which have
been engraved on beams and the highly decorated walls showcasing ornamental patterns,
constitutes to be an inspiring destination for many tourists. This mosque may be visited by
tourists from any region and is the most popular place for political destinations. Another
architectural landmark of Islamic Center, which is capable of accommodating a population of
5000 people. This is one of the greatest evidence of the history of Maldives, as it is the remains
of the palace of former Sultan. The historical background of the nation is comprised of certain
haphazard features, old photographs, moon rocks and some other artefacts, which have been
preserved in the Maldivian National Museum. In addition, the local market of this island is
highly concentrated on the northern side, and truly represents the local culture and traditions. The
market is comprised of many textile shops and women of the region prefer customized clothes, in
place of ready made garments. Some of the other attractions which the city is comprised of are
the Maldive Vicotry, Fish Market, Sea Explorer, Mulee-aage Palace and so on.
Another island which is situated near Male is that of Hulhumale Island, which is an
artificial island and is still in the stage of development. The accessibility of this island has been
arranged from the capital city. This small place is a respite from the main city, and has been
attracting tourists as well as many local surfers to enjoy the area. One of the interesting cultures
which has been witnessed in the area is that the white beaches come alive in the evenings, when
the local population come together to relax and mark the end of their day.
The tourism industry poses a great impact on tourist destinations, and especially in the
case of the this highly populated city. Though tourism brings about many advantages for
different aspects of the city, it is also accompanied by disadvantages which can be realized by
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the local community or the economy. In relation to the tourism industry of Male, it can be stated
that it has been constantly introducing the economic benefits in the form of increased
employment opportunities, both directly and indirectly. It can be noted that the industry has
benefited the economy of the city to a maximum extent, not only be creating job prospects, but
also by generating large amounts of revenues and money through foreign exchange and such
other means (Peterson, 2013). The city has been successfully utilizing these funds in the
developmental activities of nation, to restore the local communities and promote tourism
amongst tourists from all around the world. However, some of the impacts which have been laid
in a negative form are the increased prices of services and the general living costs. One of the
primary rationale behind the same is receipt of mass tourists, which in turn has led the authorities
to keep the destinations in a good condition to ensure growth of the travel and tourism industry.
Moreover, the authorities have also been addressing the specific concerns of environment.
However, certain effects of air, noise, ecosystem pollution cannot be diminished to a
large extent, owing to the huge number of tourists and the existing population of the country.
From the perspective of the society, the industry has positively impacted by an increased
interactions of diversified people and hence, introducing multiculturalism. On the contrary, this
view has also bee criticized by Page (2014), who has opined that increased interaction of
traditions and the resulting multiculturalism in the society, has the effect of dilution or
destruction of the original culture (Page, 2014.). This has been viewed as one of the negative
effects which the city of Male has been experiencing due to increase in the tourism sector.
Moreover, it has also been opined that the increase in tourism also has the effect of increasing the
tensions, hostilities and level of suspicions among the local people and the visitors. In this
manner the basis intention of promoting the local culture and tradition is completely vitiated. In
addition, there are effects which have been realized in the form of increased number of crimes in
and around the city. The city of Male has come a long way from being an island to the modern
capital city, attracting millions of tourists from all over the world every year (Miller and et. al.,
2010).
It is interesting to note that the nation has realized an increase of about 600 thousand
tourists in the year 2015 alone. On account of these statistics it can be concluded that the travel
and tourism industry of the nation is constantly growing. In consequence to the same it ought to
impose an increase pressure on the authorities for arranging the requisite amount of local
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resources to satisfy the ever increasing needs. Moreover, there also arises the responsibility to
manage waste and the waste water, in a manner which does not hamper the environmental
factors in any manner (Richards, 2011). Thus, it can be stated that Maldives has been efficiently
working and operating to address the specific requirements of the domestic as well as
international tourists, and at the same time has been functioning to cater to their own survival
needs.
It can be inferred from the discussion that the travel and tourism industry has has
experienced a major shift from the earlier times, and has been modernized to a large extent. The
transformation can be evidenced from the fact that it has become the way of living for many
people, and in order to attract an increased number of tourists, various destinations have
incorporated high levels of developments, which in consequence have also deteriorated the
surrounding environmental and societal conditions. For instance the Maldives as been
experiencing a sharp decrease in the population of Sharks as well as the damages being made to
the coral reefs. Moreover, the increased level of tourists has also effected the city of Male, in
terms of increased pollution. Lastly, developments which have been made to provide an access to
the natural and cultural heritage of the nation, are now becoming the cause of depletion and
destruction of the surrounding resources.
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REFERENCES
Books and Journals
Agrusa, J., HUSSAIN, Z. and Lema, J., 2012. Enhancing the cultural tourism experience through
gastronomy in the Maldives. Journal of Tourism Challenges and Trends. (5.2). pp.71-84.
Becken, S.U.S.A.N.N.E., Hay, J.O.H.N. and Espiner, S., 2011. The risk of climate change for
tourism in the Maldives. Island tourism: Sustainable perspectives. pp. 72-84.
Buckley, R., 2012. Sustainable tourism: Research and reality. Annals of Tourism Research. 39
(2). pp. 528-546.
Cagua, E. F. and et. al., 2014. Whale shark economics: a valuation of wildlife tourism in South
Ari Atoll, Maldives. PeerJ. 2. p. e515.
Carlsen, J. and Butler, R. eds., 2011. Island Tourism: Towards a Sustainable Perspective (Vol.
8). CABI.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Kundur, S. K., 2012. Development of Tourism in Maldives. International Journal of Scientific
and Research Publications. 2 (4). pp. 1-5.
Miller, G. and et. al., 2010. Public understanding of sustainable tourism. Annals of Tourism
Research. 37 (3). pp. 627-645.
Page, S. J., 2014. Tourism management. Routledge.
Papatheodorou, A., Rosselló, J. and Xiao, H., 2010. Global economic crisis and tourism:
Consequences and perspectives. Journal of Travel Research. 49 (1). pp. 39-45.
Peterson, C., 2013. Assessment of solid waste management practices and its vulnerability to
climate risks in Maldives Tourism Sector. Report submitted to Ministry of Tourism, Arts
and Culture.
Ponting, J., 2014. Comparing modes of surf tourism delivery in the Maldives. Annals of Tourism
Research. 46. pp. 163-165.
Richards, G., 2011. Creativity and tourism: The state of the art. Annals of tourism research. 38
(4). pp. 1225-1253.
Salazar, N. B., 2012. Tourism imaginaries: A conceptual approach. Annals of Tourism
research. 39 (2). pp. 863-882.
Saraniemi, S. and Kylänen, M., 2011. Problematizing the concept of tourism destination: An
analysis of different theoretical approaches. Journal of Travel Research. 50 (2). pp. 133-
143.
Scheyvens, R., 2011. The challenge of sustainable tourism development in the Maldives:
Understanding the social and political dimensions of sustainability. Asia Pacific
Viewpoint. 52 (2). pp. 148-164.
Williams, A. M. and Shaw, G., 2011. Internationalization and innovation in tourism. Annals of
Tourism Research. 38 (1). pp. 27-51.
Zubair, S., Bowen, D. and Elwin, J., 2011. Not quite paradise: Inadequacies of environmental
impact assessment in the Maldives. Tourism Management. 32 (2). pp. 225-234.
Online
Inbound Tourism Statistics in the Maldives, 2012. [PDF]. Available through:
<http://cf.cdn.unwto.org/sites/all/files/pdf/rs_maldives_inbound.pdf>. [Accessed on 31st
January 2017].
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Kurumba Maldives – The Island, 2017. [Online], Available through:
<http://www.kurumbamaldives.info/>. [Accessed on 31st January 2017].
The History of Tourism in Maldives, 2012. [Online]. Available through:
<http://www.telegraph.co.uk/luxury/travel/3049/the-history-of-tourism-in-the-
maldives.html>. [Accessed on 7th February 2017].
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