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Closure of the Borders in 2020 – a lost opportunity for the Maldivian tourism sector.

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Maldives, famous for its sunny weather and white  sandy beaches with crystal clear water,  is a true paradise on earth. And unarguably, this natural beauty is the main source of income for the island nation, in the form of its ever blooming tourism industry.

However, the COVID-19 pandemic caused the whole world to shut themselves in, with the closure of the international borders. Maldives also closed off their border, shutting down the tourism industry for the first time since its inception in 1972.

But, was it really necessary to shut down the tourism industry? Or was there an alternative to this?

Maldives is a tiny island nation with thousands of islands scattered across the sea geographically isolated from each island by a deep ocean or a shallow lagoon . Is there be a better place on earth than the Maldives to go during a pandemic ?

The government of Maldives truly lost a valuable opportunity to introduce a new form of tourism when it decided to shut down the tourism industry in 2020.

Private island concept

As I mentioned above Maldivian resort  islands are geographically isolated from each other while the “one island one resort” concept still stands, meaning no locals will live on those resort islands.. Naturally this means that it’s already a private island where tourists can enjoy their holidays or in this case could have acted as a safe haven for those who can afford, to hide out from the COVID-19.

Maldives , well known for its ultra-luxury tourism industry is well prepared to cater for such a scenario in terms of world class facilities.

Question is, why didn’t the government allow billionaires & celebrities to come and spend some quality time with their family and friends by booking a whole island for themselves? While this concept was successfully implemented in other tourist destinations. Such as the famous case when the Thai King isolated himself with his concubines after booking a whole facility for himself.

Local tourism

Local tourism saw a boom in many countries, especially in china where hundreds of millions of people travelled to different areas of the country for different occasions instead of going abroad since the country was in locked down. This aided China during the hardest period of the pandemic making it the first country to manage and to recover its economy and get on its feet.

The Maldives could have also used a similar the same approach. Had they have focused on this the internal economy of the nation would have flourished and people would have received some income. This would have also affected many resorts in that they could have managed without firing the local employees, which forced the government a close to half a billion Maldivian Ruffiiya on income support allowance.

End result

Maldivian tourism is considered as a benchmark by countries. Its considered as an innovator where others come and see what’s new in tourism or how they can change their tourism industry. It’s no surprise as the Maldivian tourism industry has been well managed and has been growing steadily and it always took innovation as driving factor in its tourism.

The closure of the tourism industry in 2020 is without a doubt a lost opportunity to launch a new type of tourism in the Maldives. One which could have created a considerable source of income amidst the COVID-19 pandemic.

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MIB signs an agreement to expedite business registration process

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Ministry of Economic Development and Trade and the Maldives Islamic Bank (MIB) has entered an agreement, aiming to expedite and streamline the registering services for businesses. The agreement was signed to enhance the quality of services, ensure information security, and facilitate an efficient registration process.

Following the signing of the agreement, Minister of Economic Development and Trade Mohamed Saeed disclosed that customer data can be readily verified with the assistance of the ministry’s Application Programming Interface (API). The minister stated that this would enable businesses to set up bank accounts in a convenient manner. Regarding this, Registrar of Companies Mariyam Waheed underscored the pivotal role API will play in authenticating businesses to customers and expediting in the verification process.

This initiative will significantly benefit individuals accessing online services from the ministry, fostering economic development within the nation. This marks the first agreement of its kind signed by the ministry.

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MTCC reports staggering 82.9% net profit drop

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Maldives Transport and Contracting Company (MTCC) has reported a staggering 82.9% net profit decline for Q1-2024.

According to MTCC, it earned just MVR 5.2 million in net profit for the review quarter, which came down from MVR 30.8 million in the last quarter of 2023.

The company’s revenue for Q1-2024 stood at MVR 664.4 million, which is a 15.8% drop from MVR 789.2 million generated in the Q4-2023.

Moreover, MTCC reported a whopping 94.5% decline in its Gross Profit for the review quarter, registering MVR 2.5 million in Q1-2024 compared to MVR 44.3 million.

The operating profit for the review quarter stood at MVR 41.8 million, which is a 26% drop from MVR 56.5 million in Q3-2023.

The net asset value per share dropped from MVR 227.95 in Q4-2023 to MVR 226.98 to Q1-2024, while earnings per share saw a notable decline from MVR 3.83 in the preceding quarter to just MVR 0.65 in the review quarter.

Source(s): sun.mv

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STO opens showroom in Hulhumale’

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State Trading Organization (STO) has opened a showroom specialized for construction in Hulhumale’.

The showroom was inaugurated by Construction Minister Dr. Abdulla Muthalib during a special ceremony held on Tuesday night.

Speaking at the ceremony, STO’s Managing Director Shimad Ibrahim stressed the role of the company’s former managements and board members in carrying forward the company and therefore extended them gratitude.

Situated at the same location as STO’s Hulhumale’ shop – next to STO’s Smart Store near Hulhuamle’ Hospital – the construction solutions showroom was opened following renovations up to modern standards.

STO reports that all construction-related products sold by the company will be available at the showroom including some of the most renowned brands sold by the company; Makita tools, Nippon paint and concrete from prominent mix designing brands among others.

The state-owned company is prominent in the local construction industry as STO’s constructions solutions is the largest importer and seller of construction-related products in the Maldives.

STO noted that customers can now place orders for construction-related products including Makita tools and Nippon paint via the Hulhumale’ showroom which would eliminate the need to travel to Male’ to make the purchases. Arrangements have been made in the showroom to prepare the colors of Nippon paint ordered by the customers on demand.

Henceforth, they attributed the opening of the new showroom as something which would bring easements to the lives of Hulhumale’ residents and construction industry partners operating in the suburb.

Source(s): sun.mv

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