A

Group presentation on
Global Country Study Report
MALDIVES
(ANALYSIS OF ENVIORNMENTAL & LEGAL FACTOR)
&
TOURISM118170592009
SECTOR
VADHAVI SHITAL PREMJIBHAI

POPAT NIDHEE KISHORKUMAR

MAHETA POONAM PRAVINKUMAR
ADHIYA CHINTAN NIRANJAN
LODHIYA NARESH HARESHKUMAR
GUPTA SHAILESH RAMESHBHAI
THANKI HETALDINESHCHANDRA

118170592004
118170592015
118170592002
118170592003
118174592701
118170592001

Guided by: Mr. Nagji Chavda

Ms. Urvi Suchak
Narandas Jethalal Sonecha Management &
Technical Institute
Instituite Code: 817

Introduction to Environmental Factor

Maldives government has taken major step to sustain
and to protect the health of Environment. Maldives
formulated the various act, rules and provision for The
purpose of caring the environment in
the tourism
industry and to support and facilitate sustainable
development of tourism.

Introduction to legal Factor

the Maldives, with the ever-changing political situation & the
potential pressure from the government on the judicial
system, it becomes important for the criminal justice service
providers to remain impartial & provides justice for the
citizens.
Government Type: Republic
Here current unicameral Majlis, elected in May 2009 & is
composed of 77 members serving term of 5 years. In
February 2009, Majlis passed legislation where they
increased the number of seats to 77 from 50. The next Majlis
elections will be held in year 2014.
Independence Date: 26th July 1965 from the UK

Introduction to tourism industry

The Maldives country having 1190 islands is the dream
holiday destination due to its wonderful white beaches
and enthralling scenery.
An island nation with a humid climate . The economy of
Maldives is largely based on two industries i.e. tourism
and fishing.
Now a days there are many opportunities in
infrastructure and construction, hospitality and resorts,
finance and banking, marine resource development &
fisheries, logistics/ports and transportation, services and
manufacturing activities. The GDP growth rate for year
2013 is 4.3%

Maldives has been honored with the award of worlds

Leading Island Destination, at the World Travel Awards
Grand Final 2012 Which was held in New Delhi, India.

Maldives Demographics Profile

2013

INDICATOR

DATA

Population

394,451

Age structure

0-14 years: 21.2% (male 42,742/female 41,069)

15-24 years: 24.9% (male 58,016/female 40,233)
25-54 years: 45.4% (male 108,390/female 70,817)
55-64 years: 4.3% (male 9,052/female 7,764)
65 years and over: 4.1% (male 7,935/female 8,433)

Median age

total: 26.5 years

male: 26.9 years
female: 25.8 years

Birth rate

15.12 births/1,000 population

Death rate

3.76 deaths/1,000 population

INDICATOR

DATA

Life expectancy at birth

total population: 74.69 years

male: 72.44 years
female: 77.05 years

Ethnic groups

South Indians, Sinhalese, Arabs

Religions

Sunni Muslim (official)

Languages

Dhivehi (official, dialect of Sinhala,

script derived from Arabic),
English (spoken by most government
officials)

Literacy

definition: age 15 and over can read

and write
total population: 93.8%
male: 93%
female: 94.7%

Introduction to economic sectors

Fishing.
Fishing sector employs about 11% of the labor force of
Maldives. The fisheries industry, including fish processing
and gives 7% contribution towards GDP.

Agriculture.
Poor soil and scarcity of fertile land have historically
limited agriculture to a few subsistence crops, such as
coconut, banana, breadfruit, papayas, mangoes, taro,
betel, chilies, sweet potatoes, and onions. Almost all food,
including staples, has to be imported from other countries.

Cont..
Manufacturing.
The manufacturing sector provides less than 4%
contribution towards GDP. Traditional industry includes
boat building and handicrafts, while modern industry is
restricted to a few tuna canneries, a bottling plant, and a
few enterprises and firms in the capital producing PVC
pipe, soap, furniture, and food products.

TOURIST ARRIVAL TRENDS

As Figure depict that, tourists

arrive to the Maldives and visit
it for purpose like honeymoon,
diving
&
leisure,
Approximately (53%) seek
relaxation and leisure but it
strongly appeal as a romantic
place, the honeymooners
category (30%) is also larger.
The undersea beauty of the
islands also attracts divers&
that includes 15% of all
visitors.

STRUCTURE, FUNCTIONS AND

BUSINESS ACTIVITIES OF TOURISM
INDUSTRY
A. FUNCTION OF THE TOURISM INDUSTRY:
B. STRUCTURE OF THE TOURISM INDUSTRY

BUSINESS & PROMOTION ACTIVITY

FOR DEVELOPED BY TOURISM
INDUSTRY:
1. Maldives marketing & PR Corporation launched the
sunny side of life E-newsletter
Maldives appointed PR Agent for Indian Market
Travel agents looking for business partners in
Maldives
Incentives for Investors
2. Maldives Participates at the Eastern Mediterranean
International Tourism and Travel Fair EMITT 2013.
3. Tourism Human Resource Development Fund

Cont

4.

Maldives moves to outlaw bottled water.

5.Maldives

government

watching

for

private

funding for advertising campaign to boost tourism

industry .

NEW FINANCIAL RESTRICTIONS ON

TOURISM DEVELOPMENT

Joint venture regulation

Development safeguards
Picnic Island

Policies and norms of Maldives for

tourism industry
Maldives tourism presents a number of priority issues

intuitions' and regulation private partnership, finance,

incentives and taxation
Small

and

sustainable

medium

sized

development

enterprises

statistics

and

technology and monitoring and evaluation.

Objectives of policies of Maldives

culture

and

information

A. Tourism regulation
Maldives government has been quite efficient in leaving
the private sector to proceed with business.
The government has developed standards for carrying
capacity and construction on the islands
Tourism bas been developed on uninhabited islands for
the most part as one resort per island.

B. Culture and sustainable development

Maldives has a rich historical and cultural past some of
which is inevitably being lost in the modern world.
Cultural activities can also include aesthetic the living
arts, art, theatre, dance and music, all capable of brining
social and economic benefits.

C. Volunteer Maldives
Volunteer Maldives is dedicated to inspirational and
promising the persons of the minor island crowds of the
Maldives and in term highlighting the real beauty of the
Maldives and its people.
Maldives is made up of 1200 minor islands and is often
portrayed as an affluent kingdom of indulgence tourist
resorts catering to the reach and well-known

D. Finance and incentives

Financial markets are quite shallow in the Maldives
tourism features importantly in the loan portfolios of
several banks- as high as 75 % in one case.
Some banks postponed payment of principal on loans
following the Tsunami to mitigate the impact on the
resorts' finances.
From a tourist's point of view, the banks offer good
transfer and payments systems service (SWIFT and
ISBS), and easy access to cash via ATMs.

E. Taxation
Maldives has a simple tax system that no income tax,
property tax, sales tax or VAT
No taxes on exports with has no income tax, property
tax, sales tax, or vat, and no taxes on exports with the
exception of tourism an invisible export, which is quite
highly taxed

F. Maldives disaster managing idea

tourism sector
Disaster managing strategy and plan for the tourism sector

of the republic of the Maldives

It attempts to suggest a result-based background for

disaster managing that take full account of the geography of

the Maldives the intuitional managerial legal& policy
framework with in which the tourism industry functions and
the impotence of the industry to the low- priced of the
republic

G. Maldives eyes$100 mine tourist tax

forco2 plan
An unpaid tax on tourists who visit the luxury recourses
and white sands of the Maldives could raise up to $100
million a year near the country's intention to develop
carbon unbiased by 2020.
The Maldives is made up of 1,192 sunken islands in the
Indian Ocean. With regular ground level of 1.5 meters
above sea equal, it is also the world's deepest country
and one of the most susceptible as climate change
increases sea levels.

POLICIES AND NORMS OF INDIA FOR

TOURISM INDUSTRY INCLUDING
LICENSING /PERMISSION, TAXATION ETC
Export
A function of international trade where goods produced in
one country are shipped to another country for future
sale or for trade purpose.
Export Policy
Exports are the major focus of India's trade policy & a
thrust area is exports which involves higher value
additions. Many items can be freely exported from India
& few items are subject to export control in order to
avoid shortages in the domestic market as well as to
conserve national resources & to protect the
environment.

Export to Maldives
Indian major exports items to Maldives include rice ,
sugar, fresh vegetables,drugs, pharmaceuticals & fine
chemicals plastic and linoleum products, manufactures
of metals & machinery equipment. India & Maldives also
shares the status of Most Favored Nation with each
other.

Permission for Export

DGFT is mainly responsible for implementing the
Foreign Trade Policy or Exim Policy with the main
objective of promoting Indian exports

License
An export license is a document issued by the
appropriate licensing agency after which an exporter is
allowed to transport his product in the foreign market.
Application for an Export License
Taxation
Customs Duties (Import Duty and Export Tax)
Corporate tax
Personal Income Tax

Types of Customs Duties

Export duties
Basic Duty
Additional duty
True Countervailing duty or additional duty of
customs
Anti-dumping Duty/ Safeguard Duty
Education cess

Present trade barriers :

Definition:
trade barriers means the restriction of business
between two country.

Barriers of foreign exchange:

A lack of foreign exchange affecting businesses
was reported in 2009-2011. This has lead to
restrictions on foreign exchange and some
current international transactions are being in
the similar market.

Openness to foreign investment:

The Maldives Tourism Development Corporation is
in charge of promotion and development of tourism
sector. Foreign investments are required to pay
annual royalty fees to the Maldives government.
Risk for investment:

According to the Law on Foreign Investment (25/79)

the government should, with or without notice,
cancelled an investment.

Right to private ownership &

establishment:
There is short private ownership of land. Foreign investors
are not allowed to own land, but are granted lease rights
rang up to 50 years.
Labor:

There is scare of skills and unskills labor to meet in

Maldives. Expert employee is of equal cost or more
expensive than local employee.

Weakness of tourism sector:

Professional employee In tourism sector is 21% of all.
Unskilled workers are 34% in tourism sector.
55% people are depending on tourism sector.

Weakness of Maldives tourism industry.

One weakness of Maldives tourism industry is regulation. A
public company being a regulatory agency with a small earn
tax to fund its operation.

Effect of tsunami on Maldives

tourism sector:
Tourism sector enterprise have lot of loss compared with
their counterparts in the manufacturing and transport logistic
sector.
Natural barriers:
In natural barriers the main areas of include are marine and
coastal zone management. The shoreline and beach
planning is also affected by it.

Tourism sector issue

Limited domestic access.
Increase rent on land lease.
Employment and training.
Lack of culture base tourism.
Lack of Maldivian worker in tourism sector.

Potential for tourism investment of India

The Indian Tourism sector is one of the largest service
industries in the country in terms of its contribution to the
Gross Domestic Product (GDP) and Foreign Exchange
Earnings (FEE), as well as for providing employment to
millions

The segment in fact is expected to generate around US$

42.8 billion (INR 1,897.7 billion) by 2017, according to a
business research note by auditing and consulting firm
Deloitte Touche.

Cont..
Intentionally, the Tourism and the Hospitality sector
generated a total of US$ 2,468.39 billion (INR 1,094,
48.4 billion) in Foreign Direct Investment (FDI) during
April 2000-April 2011, according to the division of
Industrial Policy and Promotion (DIPP).

Business opportunities and challenges for

tourism investment in Maldives
The
government
aim
to
increase
private
entrepreneurship in the Maldives, and spoke on the lot
of investment opportunities for skilled global companies
in the Maldives.
He added that the country has the lawful arrangement to
defend global investors in the Maldives and the
government was functioning to further make stronger
the laws and regulations.
Maldives has given good return for inward investments,
mostly in the tourism sector.

Investment in boutique hotels

PPP in public transport for the Maldives Project opens a window
of opportunity for investors to partner with the transport
companies on a number of business ventures. As part of the plan
to make the public transport system more feasible and attractive
to the public, the transport companies are provided with land to
build harbors, transit motels, as well as luxury boutique hotels to
cater for high end tourist markets. Transport service providers are
at present looking for probable investors to invest in these
opportunities and Invest Maldives can put involved investors in
touch with the providers.

Specific areas of tourism infrastructure

requiring investment

Investment opportunities: Real estate

commercial complex
With over 100,000 residents, the capital city of Male has
now become one of the most compactly populated
islands in the world.
The Government of Maldives have so put-up a 16,500 sq
feet property in the heart of Male's commercial district to
build and operate a multi-storied commercial building.
This complex will contain more than 400 shopping stalls,
a 10,000 sq feet supermarket, rooftop restaurants,
residential apartments and many more

Cont..
The following is a list of investments already allowable
by the Maldives Government. Companies, agencies and
individuals wishing to invest in these areas can presume
positive support and assistance.
Financial consultancy
Auditing services insurance services
Water sports activities Commercial diving (salvage)
Domestic air transport services.
Technical support services (i.e., photocopies, elevators,
ATM machines, etc.)
Manufacturing of garments
Water production, bottling and distribution
Consultancy in the fields of public relations, editorial,
advertising and translation services

Cont..
Packing and distribution of cement
General Sales Agency, Passenger Sales Agency and
Cargo Sales Agency for airlines and shipping lines
Spa operations and management
Water treatment plants
Boat building
Software development and related maintain services
Domestic maritime ferry services
Financial leasing services Fish processing activities
Traditional medical services

Economic benefit for tourist

Suggested measures for creating a favorable
atmosphere for investment in tourism infrastructure and
expanding economic benefits of tourism
1. Establishment of an investment or development
bank
Finance for infrastructure investments is scarce and costly
in the local economy. Though, the availability and
affordability of financing remains a basic element for
encouraging investments in tourism infrastructure. The
establishment of an investment bank willing and capable
to finance investments in tourism infrastructure, or any
other infrastructure development projects at reasonable
cost, would definitely encourage investments.

Cont..

2.

Encourage private sector involvement in Infrastructure

development
At current, the involvement of the private sector in tourism
infrastructure, other than the development of resorts, is
inadequate. One reason for lower investment in infrastructural
development is because the private sector role is minimal and
the burden on the government is too high to cope with the
issue.
It is probable that investment in infrastructural growth will
increase at a more acceptable rate if the private sector is more
proactive than at present. In order to support the private sector
to become involved in infrastructure development, the
government should provide additional incentives on a
commercial basis. This could include easy access to finance at
rational rates, or import duty exemptions on materials imported
for the initial investment as well as any further imports of
materials for maintenance.

Cont ..
3. Increase lease period on land and review of land
rents
In order to facilitate investment finance and generate a
more conducive environment for investment in
infrastructure, the government should critically consider
a review of the existing lease rent on land and the lease
period of land.
The current lease period of 25 years could be increased
so that investors could offer a longer lease period as
security in negotiating loans with foreign banks and
other financial institutions

Business of Indian companies in

Maldives
Chief Indian companies like the Tata Group, infrastructure
firm GMR, wind turbine maker Suzlon and others have
invested in the Maldives
The Tatas are present with their Taj brand of hotels in the
archipelago, where tourists visit to, seeking sun and sand.
In 2010 July to September, the High Commission of India
in cooperation with the Ministry of Tourism and Culture
[GOM] and India Club organized the India- Maldives
friendship festival [INMAFF] and the inaugural ceremony in
Male was attended by President Nasheed and senior
members of his cabinet
.

Tourism contribution to GDP in

Maldives
Year
GDP
GDP Growth
Tourism
% Share of
%

Contribution

Tourism
Contribution

2007

16,512.00

10.6

4,704.00

28.5

2008

18,526.00

12.2

4,870.00

26.3

2009

17,648.00

-4.7

4,608.00

26.1

2010

18,659.00

5.7

5,335.00

28.6

2011

20,051.00

7.5

6,061.00

30.2

Comparison of Indian tourism

industry and Maldives tourism
industry
Maldives registers a 6.1% tourist arrival growth during June 2012
having 59,379 arrivals.
Tourism & related services contributed 30% of GDP in 2011, but
its indirect contribution is much elevated. As a result, tourism is
the catalyst for growth
The travel & tourism sector in India contributed 6.4% to Indias
GDP, amounting to Rs 6.7 billion, which includes direct & indirect
earnings
In tourist arrivals Indias rank is 38th while Maldives rank is 107th

Tourism products
Maldives tourism products

Indian tourism products

Gujarat tourism
products

Maldives Coral Islands

Golf tourism

Polo Tourism

Religious Tourism

Famous Islands in Maldives

Education Tourism

Film Tourism

Archeological &
Heritage Tourism

Maldives Water Sports Activities

1)Snorkeling
2)Surfing

Meetings Incentives Conferences

and
Exhibitions (MICE)

Adventure Tourism
1)Water Skiing

Cultural Tourism &

Wildlife Tourism

2) Parasailing

3)Para-sailing

3) Trekking

4)Winds surfing

4) Snow Skiing

Adventures Scuba Diving

Luxury Trains

Wellness Tourism

Event Based Tourism

Maldives Cuisines

Eco-Tourism

Domestic Tourism

Business Tourism

Sun set points

Tea Tourism

Cruise Tourism

Entertainment and
Recreational Tourism

crystal
clear panoramic lagoons

Sports Tourism

Medical Tourism

Well Being Tourism

Industry Performance

Tourism products of Gujarat

For eco-tourists, the state offers
opportunities to see a wide range of
wildlife including the Asiatic lion and
Indian wild ass, endangered
antelopes, a variety of deer, etc
There are more than 400
archaeological sites in the state
including some of the most
substantial excavations of Indus Valley
civilization period at Lothal (near
Ahmedabad),Surkotada and
Dholavira (in Kutch).
The state has important pilgrimage
places like Dwarka, Somnath, Dakor,
Ambaji, etc for Hindus, Udwada,
Navsari and Surat for Parsees,
Palitana, Girnar, etc for Jains

SWOT analysis of Maldives

tourism industry
STRENGHTS

Unique model of island development

Natural resource base
Excellent resort facilities
ocean based activities
OPPORTUNITIES
Product differentiation and segmentation
New markets
Human resource development
Expand government resource

WEAKNESSES

Reliance on foreign personnel

Dependency on imports of capital
Underprivileged information base
Terrorism & religious extremism
THREATS
weak coastal zone management
Narrow financial sector
Monochromatic product line
Losing traditional market base

SWOT analysis of Indian tourism

industry

STRENGHTS

WEAKNESSES

Different Variants of tourism

Rich culture, heritage
Renowned Indian hospitality
adventure activities

Insufficient infrastructure
Restraining airline policy
Insufficient marketing
Lack of expert management

OPPORTUNITIES

THREATS

Attention provided by government

high quality human resource
Brisk growing middle-class
Potential for private sector venture

Terrorism
Tough competition
Disorganized tourism development
Recession