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Maldives 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.
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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.
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.
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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. |
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