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 Maldives
Islands
Economy
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| MALDIVES
ISLANDS - ECONOMY |
| The
Maldives is not blessed with many natural resources except for her
beauty and the riches of the sea. In fact, 99% of its territory consists
of water. Hence it is not surprising that tourism and fishing are
the major industries of the country. Agriculture is practised only
on a limited scale, as the land is not very fertile. The diversity
of the flora is limited to a few tropical fruit and vegetables, root
crops and others. The essentials and consumer goods are not manufactured
because of the lack of resources. Almost everything required for living
has to be imported. |
During seventies and early eighties the Maldivian economy was based
on three major industries, fishing, tourism and shipping. Though Maldives
has traditionally relied on fishing it also had developed a modest
merchant fleet in the region called Maldives Shipping Limited (MSL).
However, today shipping is a minor actor in the Maldives where only
two industries dominate the economy. Fishing provides most employment
to the inhabitants while the tourism controls the major foreign exchange.
Notwithstanding the scarcity of resources in the Maldives, the past
two decades have experienced a phenomenal growth of the economy. In
fact, Maldives is one of the few countries which enjoys an annual
GDP growth rate of 6.0%. The main activities in the modern industrialisation
arena includes fish canning, manufacture of garments, bottled of aerated
water and fizzy drinks, brick making, refrigeration, transportation,
banking, andinsurance. These activities are significant in today's
economy.
Other
minor industries in the Maldives consist of building and construction,
boat-building, rope-making, blacksmith, handicraft, lacquer work and
other cottage industries. |
A small vadhu dhoni |
| Traditionally
fishery is the main occupation and major livelihood of the Maldivians.
It is also the second largest industry in the Maldives. The main methods
of fishing are pole and line for skipjack tuna. Surface trolling is
done for little tuna, frigate mackerel, wahoo and jacks. The main
composition of fish catch is skipjack tuna (Katsuwonus pelamis), representing
50-75% of the total catch. The second most important fish caught is
the yellowfin tuna (Thunus albacaraes). The main fish products exported
are; frozen fish, canned fish, dried fish and salted dry fish. The
traditional fishing vessel is a sailing dhoni not about less than
15 feet long. Thatch sail were also used in the early days of fishing.
Clothe sails and rowing is common in traditional fishing practice.
The Maldivan fishery is famous in the world for its dolphin friendliness. |
A fisherman at
Gulhi island - bringing fish home. |
The mechanisation of fishing vessels revolutionised the Maldivian
fishing industry. It enabled the fisherman to travel much farther
distances, than were possible when sailed boats were in use. It meant
that the direction and speed of the wind were no longer determinants
of the distances travelled by fishermen in search of fish. Establishment
of cold storage facilities was another important landmark in the development
of the fisheries industry. In 1997 average number of mechanised fishing
(dhonis) vessels engaged in fishing were 1,328. Catches of tuna and
other tuna like species tripled from 30,000 metric tons to 100,000
metric tons in 1994. The total catch of fish increased to 107,358.17
metric tons. Haa Alif, Raa and Baa, Lhaviyani, Kaafu, Thaa, Laamu
and Gaafu are the principle fishing atolls representing about 75%
of total fish landings.
In
the past Maldives exported tuna primarily in the dried and smoked
form called hiki kandumas or 'Maldive Fish' to Sri Lanka. In 1971
due to reduction in purchase of 'Maldive Fish' there was a strong
need for diversification of the product and market. Maldives also
exported other form of fish products to Japan and Thailand. In 1982
the export of fish was severely affected because of the drop in negotiated
export prices caused by world recession and decline of demand for
the Japanese companies which had been regularly buying fish from Malé.
However,
the government of the Maldives stepped in to take over the collection
and canning facilities of Japanese company, which had withdrawn from
the country. Authorities ensured that the procurement prices paid
to the fishermen were maintained. Later better |
prices
were negotiated with some buyers in Thailand and other countries.
The government of Maldives implements various projects to diversify
the fish projects and get new markets. Ministry of Fisheries, Agriculture
and Marine Resources is the government authority concerning the implementation
of projects and studying the various impacts of new developments in
this sector. During 1980s Fisheries Ministry started a project to
anchor mooring buoys in various parts of the country to attract tuna.
Fishermen's Day is also marked to emphasise the importance of fishing
to the Maldivian economy and the livelihood of Maldivians.
The
Maldives Industrial Fisheries Company Ltd. is a government owned company
which carries out business in the field of fishery. MIFCO buys fresh
tuna from local fishermen. They have collector vessels deployed in
fishing atolls. It also owns a fish-canning factory at Felivaru in
Lhaviyani Atoll. MIFCO operates a boatyard in Alifushi, where larger
fishing vessels are now built and sold to the people on hire purchase
basis. Fishery in the Maldives shows a promising future. The industry
needs modernisation and new technology to keep pace with the global
economic development. |
The
spectacular beauty of these coral islands made the Maldives one of
the most popular holiday destinations in the world. People had visited
these islands to trade with the inhabitants and by chance when their
ships ran off course or were shipwrecked in the shallow reefs of the
Maldives. The sheer natural beauty of the country and the warm hospitality
of her dwellers captivated almost all of them.
From a very humble beginning in the 1970s the tourism in the Maldives
has evolved and matured into an industry, which is a key player of
the domestic economy. Tourism in the Maldives began in 1972 with 2
tourist resorts namely Kurumba Village and Bandos Island Resort with
a bed capacity of 280. By 1987 the total number of resorts increased
to 57, while their bed capacity rose to 6203 beds. |
| After
29 years of sustainable growth in the industry the number of resorts
in 2000 stands at 87, having a total bed capacity of more than 15,000
in resort islands. There were more than 2500 beds in other tourist
accommodating facilities such as hotels, guesthouses and safari vessels.
Today tourism contributes over 19% to the country's GDP, generating
more than 70% of foreign exchange earnings and more than 40% of government
revenues. The number of in-bound tourists to the country increased
tremendously from 1097 tourist in 1972 to 395,725 in 1998.
Each
resort is located on an island with self contained facilities such
as power plants, cold rooms, desalination plants, sewage and waste
disposal systems, staff quarters, transport services and diving
facilities etc. Each resort is designed differently and every island
is unique despite the typical tropical environment of the Maldives.
Guestrooms are generally built in single story though very few resorts
have two story rooms. Most of them have thatched roofs and are built
of corals and bricks.
|
Tourists in capital Male' - one of their excursion trips. |
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