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    China Discovers the Maldives

    When Chinese travelers are choosing a beach resort overseas, they're now picking the Maldives more often than Bali, Phuket or any other destination. The country got 61,000 visitors from China in 2009 and then 119,000 last year, with newlyweds on their honeymoons making up much of the business. In the first nine months of this year the number of Chinese visitors reached 146,668, a 62% jump from the same period in 2010. A new airline focused on the China market, MegaMaldives, started flights this year from Hong Kong, Beijing, Shanghai and Chongqing. China Southern, Sichuan and Hainan airlines also are adding service. Last month China opened an embassy in the Indian Ocean outpost. FORBES ASIA sat down with President Mohamed Nasheed in his Male office.

    FORBES ASIA: Tourism keeps this nation of 1,200 islands afloat, and China is sending 22% of your visitors this year--almost twice as much as your second-biggest market, the U.K. What are you doing to keep this business coming?

    MOHAMED NASHEED: We have to learn about Chinese culture. There is so much to learn. China is on the rise, and the Chinese people are seeking where they want to go in the world. If we're not the place, we will lose out, and they will move on. But so far we are successful, and the future is bright.

    The Maldives are part of a trend of Chinese sampling higher-end, more remote spots--Fiji added flights to Hong Kong two years ago, switching its focus from Japan, where the market had leveled off. Do you expect the number of Chinese visitors to hit a ceiling or keep rising? We see nothing to indicate it will not continue to rise in coming years. Now we want to expand the market. We need to add more attractions, ways for visitors to enjoy the beauty of the Maldives without disrupting the environment.

    You are negotiating with a Chinese company, Chengdu Century City, to develop a series of islands with resort hotels, shops and other attractions in what would be the country's biggest project. Isn't this a huge leap? We are moving ahead but also considering all the impacts. I'm told, if we know what we want, it's best to work with one big partner. Then it's easier to do something of this scale, to get everything right. What we want is very clear. We don't want to disrupt our balance. Protecting what we have is the most important thing to us. We aren't desperate for investment. We don't have to be hasty.

    You're planning to allow resorts on inhabited islands, reversing a policy that segregates resorts from the Muslim population. Why? We've segregated ourselves in these little islands for too long. The tourists don't get to see the real Maldives and Maldivian culture. In the past there was a desire to segregate the Maldives from certain influences, but it also kept us from ideas and knowledge. Maldivians are Muslims but modern. The time has come to end the segregation from the outside world.

     
    • World Citizen  •  Miami, United States  •  6 mths ago
      Malidives is the Most Beautiful Place On Earth.... I haven't quite seen the most beautiful beaches anywhere in the World..... I don't blame the Chinese for selecting the Maldives...$$$
      • . 6 mths ago
        Morning walk north south six miles just good for the lungs and then the sea food yummy yummy my tummy:)
    • Groucho Marxist  •  6 mths ago
      "Maldivians are Muslims but modern"

      What's that Orientaliist comment supposed to mean?
    • kaboom  •  6 mths ago
      chinese discovered the condom too back to the Qing Dynasty.
    • Byakuya  •  6 mths ago
      when you ask an American tourist where they come from, the usually say Canada.

      It's true....I've seen it many times first hand.
      • Bob 6 mths ago
        Yeah we know, the loud mouth turds promised before that they were going to move there once Bush was elected but just like everything else with them they wouldn't keep their promise.
      • kaboom 6 mths ago
        duhh muslims love white women
    • bibo1900  •  San Diego, United States  •  6 mths ago
      ching chong ping pong chi chai
    • yahooreader  •  6 mths ago
      It's amazing that there are more Chinese tourists going to the Maldives than there are Americans or British who are much richer than the Chinese. Maybe it's a difference in spending habbits. Next booming target for the Chinese would be Cuba as it is quite good and also not expensive. Most Americans could ask the Eurpeans and Canadians about Cuba where Varadero beach city near Havana used to be the paradise for the US millionaires before Castro's revolution. Varadero receives more than a million tourists per year mainly from Europe and Canada per wikipedia.

      We read a lot about many Hollywood stars going to the Maldives for their vacation and there are the Carribeans/Mexico just next door that are quite good but cheap to go to (Cuba, 50+ miles from Key West, even though not illegal to visit, is still difficult to visit but may open up soon too). In China, Maldives is more like for the upscale masses . That's why 120 thousand of the 50 million people who vacation overseas went to Maldives last year. Tell Chanos and he won't believe it since the Chinese are supposed to make only $4000 per year which will buy less than five days in the Maldives (it costs about $5,500 per person double occupancy or Rmb35,000 for a six-day/four-night trip to Maldives during low season from Beijing or Shanghai per their Travel company websites). This is comparative to coming to North America for a two-week tour package/double occupancy from China. A similar package to the Maldives from Toronto/New York is about $15,000 per person double occupancy during same low rainy season. That may also explain a bit of the statistics.

      Visiting Maldives will continue to become more expensive as the islands have limited resources and demand is going up faster than supply. 1% of Chinese tourists going overseas = 500,000 which may stretch the ability of the industry in the Maldives especially the international airport of Male. That may happen soon even if Chanos does not believe it. He would say: The bubble is already bursting, the collapse has started, how could they afford to vacation in the Maldives? Chengdu Century City may be smarter than Chanos after all when it comes to Asian real estate, China, its economy and the purchasing power of the Chinese/Asians.
      • Byakuya 6 mths ago
        It's not amazing. You're just naive.

        Brits are far from being who they were before. Your head generates images of rich British travelling around the World touring their possessions.

        Rich Americans tipping 20s everywhere.

        Yeah right.

        Those days are long over.
      • RayH 6 mths ago
        Chanos is a FOOL and will lose his pants bidding on an economic bust of China.

        With 100 million people fairly well off, China is currently No. 3 in the world in number of people living in developed world living standards, behind U.S. and Japan; should surpass Japan in 2013. Britain is further down the totem pole.
    • sniper assassin  •  Irvine, United States  •  6 mths ago
      Islam is the official religion of The Maldives. Maldives is a 99.41% Muslim country although open practice of all other religions is forbidden and such actions are liable to prosecution. Article 2 of the revised constitution says that the republic "is based on the principles of Islam." Article nine says that "a non-Muslim may not become a citizen"; Article ten says that "no law contrary to any principle of Islam can be applied" Article nineteen states that "citizens are free to participate in or carry out any activity that is not expressly prohibited by sharia or by the law." It's a good thing for the Chinese that they are atheists, otherwise were they Christians, they'd all be thrown in jail during their vacations. Advice to Americans who are Christians - and particularly to Jews... don't go to the Maldives, ever.
      • Jon 6 mths ago
        I think most people are going to the Maldives to enjoy the beaches and relax at a resort and give little thought to what religion they are.

        So as long as you aren't going there to try to proselytize the locals I don't think anyone should fear traveling there. Certainly no one is going to be 'thrown in jail' for being jewish or christian.

        Its funny you think its 'a good thing the chinese are atheist' as most muslim people recognize moses, abraham and jesus as prophets and view atheists somewhat negatively.
      • frank 6 mths ago
        Not all chinese are not atheists...they are generally buddhists-, taoists or confucianists....they just don't accept the alien concept of the western god
    • Fair  •  6 mths ago
      Amazing , I recall most Chinese had the same blue color clothes and only the head of Communists drove the 1950's vehicles. I have my kids to study Chinese now!
      • RiceBall4U 6 mths ago
        All that because of Hard work, dedications, don't buy things that you don't need, and save some left over money.
      • oogity boogity 6 mths ago
        Where the phuket are you from.
    • uggtard  •  6 mths ago
      maldives is for the 1%
    • Pikachu B  •  Austin, United States  •  6 mths ago
      Chinese tourists are horrific. They roam tourist attractions in mega-packs. It's tourism blight. If you find your favorite destination has been overrun by Chinese, avoid it at all costs because it will not get better.
    • Danny the Bull  •  6 mths ago
      Who cares......they are all just a bunch of savages praying to heathen gods. The same people who do nothing for some little girl die'n in the street after getting hit by some rice truck. Driving all of natures animals to extinction to feed their un-natural desire to stuff all of the different animal pen is in their mouths. Sick..sick people.
    • Fair  •  6 mths ago
      Well, same like the Japanese in 1980's
    • Fair  •  6 mths ago
      I will beg Chinese to come and visit my place. they have Mao 's money . who care Mao's communist!
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