Maldives - Invites Bids for 10 Islands
The Maldives Ministry of Tourism and Civil Aviation has notified the names of 10 islands for which it is inviting a second round of bids for development as tourist resorts. The Maldivian Government is planning to release 35 new islands for development as tourist resorts. The invitations for these will be open in early June 2006.
The Maldivian Minister of Tourism and Civil Aviation, Dr. Mahmood Shaugee, announced the names at a press conference at Maldives. He said the names were being notified as the information would be useful for those interested in bidding for the 10 islands in the first round of bids opened on April 3, 2006. Dr Shaugee said that as in the previous round, five islands would be available for Lease-Rent Controlled Bids and five for Lease-Rent Open Bids.The islands of Kabaalifaru, Shaviyani Atoll (200 beds), Gaakoshibi, Shaviyani Atoll (200 beds), Medhafushi, Noonu Atoll (200 beds), Kanifushi, Lhaviyani Atoll (300 beds), Elaa, Thaa Atoll (280 beds) belong to the Lease-Rent Controlled Islands category. The islands of Naridhoo, Haa Dhaalu Atoll (150 beds), Maanenfushi, Raa Atoll (170 beds), Gasveli, Dhekunuboduveli, Kudafushi, Meemu Atoll (100 beds), Mahadhoo, Gaafu Alifu Atoll (120 beds), Kaishidhoo and Gaafu Dhaalu Atoll (90 beds) belong to the Lease-Rent Open Islands category.
In the Lease-Rent Controlled Islands the highest rent that can be proposed per bed an year is fixed. This is meant to facilitate the growth of medium-priced resorts in the next one to two years. The total lease period is 25 years and the rent after the tenth year will be determined based on the prevailing average lease rent rate in the Maldives tourism sector at that time.In the Lease-Rent Open Islands category, the islands will be awarded to the bidder who offers the highest rent for a 10-year period. These bids are meant for islands with smaller bed capacity and are meant to provide an opportunity to bidders who may want to win a price competitive bid and develop innovative, luxury products. The total lease period is 25 years and the rent after the tenth year will be determined on the basis of the prevailing average lease rent rate in the Maldives tourism sector.
The additional 35 islands proposed for development of tourism resorts is expected to add the much needed 5,000 to 7,000 beds in the next two to five years, to facilitate the sustainable expansion of the Maldivian tourism industry. Although the bed-capacity in tourist resorts has increased from 16,318 in 2001 to 16,858 in 2004 the growth rate is only 3.3 per cent. Meanwhile, the tourist arrival rate continues to grow by 33.6 per cent.The Second Tourism Master Plan had proposed the development of 20,500 beds by 2005. However, the number of beds available is 16,858 and Maldives is facing a shortage of 3,642 beds. The 11 new resorts which were recently bid for has only 1,600 beds and does not adequately address the bed-capacity shortage. Even with the addition of these 11 resorts, there is a bed-capacity shortage of 2,042 beds.
The Pacific Asia Travel Association (PATA) has forecasted that Asia Pacific tourism would grow in the next three years and that arrivals to Maldives is likely to increase by 6.8 per cent in 2006 and 2007.
The Maldives Association of Tourism Industry (MATI) and many international tour operators have impressed upon the Government the need for increasing the number of medium-priced beds for the charter market. MATI and others have expressed concern that an increasing number of resorts are becoming up-market facilities, upsetting the balance required in the product profile of the destination for sustainable development.