The decision to reprieve resorts who are dodging payment of rent and accrued fines is a dangerous precedent created by the tourism ministry. This is actually a very serious issue as all of the owners of these defaulting resorts are senior members of the ruling MDP party. Tourism industry is the one sector of our economy that works well relatively compared to other sectors so its an alarming situation. The ministry and administration has to make a point of being seen as not playing favourites to the party members.
Tourism ministry may have considered the effect of revoking operation license of these resorts and the ensuing economic factors which might negatively effect the upcoming national elections in their decision. However these figures owed by the resorts in question are not of the magnitude that would have been impossible for resorts to come up with if the resorts are in business. Our resorts are well known for their over pricedness where even a bottle of water is sold for guests to the equivalent of a bottled water case! Also a quarter of million dollars is average monthly value of payroll in a mid sized resort. So its bewildering how the ministry has to bend its uprightness just to appease party benefactors.
Below is a list of resorts and the amounts owed by these resorts as rent and fines.
When employers are remarkably stubborn, everything has to be done by the force of law! Atleast that seems to be how it works in the country. Although we have a booming tourism and an accompanying, construction industry, workers of both industries generally live in medieval conditions. The plight is especially worse for construction industry as the workers are mostly expatriate workers. Worse means ‘small’ things like having to work 7 days a week, no pay for 6 months, a makeshift toilet for one in 50 people and things like that. However its to their credit that Minivan observes that the most frequent complaint of expatriate workers is about unpaid wages, while that for locals is about living conditions. However the ever persistent demand by resort workers about service charge is also about money which is also legally theirs.
Minivan has an excellent article on these lines here… Pls follow to read.
Although our construction workers build world class resorts, their work accommodation is definitely other-worldly..
The problem of illegal workers has soared to new heights as the country is listed on US State Department’s human trafficking watch list for a second year. To tackle the problem the military has been manning the immigration counters and human resources ministry to investigate the root causes of the problem. Prior to this takeover the two offices (immigration and human resources ministry) were not able to solve the problem of which office keeps which monies associated with the immigration and visa fees process. The problem was resolved that neither office gets to keep any monies related to expatriates visas, deposit fees, work permit, return ticket etc. Instead Maldives Inland Revenue Authority takes over the money matters from the two offices.
Briefly the various numbers associated with the illegal immigrants are as follows
130milion Rf as lost visa fees per year for the country.
Greater than 40000 estimated illegal immigrants in the country. The two separate databases kept by the Immigration Department and Human Resources Ministry has a variance of greater than 20000 which is making it difficult to estimate the size of the problem.
All legal expatriate worker pays 250rf per month as work visa fees.
1 office serves visas. 1 entry point for immigration.
Expatriates are estimated to remit 10m$ per month. The dollar shortage problem is frequently associated with this problem. However the single most drainer of dollars is high government spending.
Its also estimated that workers remit 100-800$ per month per worker which is contrary to popular belief that illegal workers work almost for pennies!
Recruitments agencies are charged 1500rf per worker as deposit.
To counter the unwieldy problem, the government resorted to a new boarder control system which also fell foul to corruption: The monies involved in the new boarder control system are $220m for 20 years for a company called Nexbis: A comparable system that is employed in in Sri Lanka costs 2.2$m to install and to develop!
The recent round of middle east turmoil and popular action to remove corrupt regimes from power started with an economic problem. Joblessness. The same kinds of problems are being experienced in more developed countries such as Spain, Italy and Greece. Here in Maldives, we had a culture of government appointing political and civil service jobs as favors for katheeb’s and atholhuverins and their friends and families for a long long time. At that time those who didn’t have the right connections had to make their own way to resorts or somehow manage to scrape a living. Time however has changed with the new popular administration and the changes that are currently being brought simply needs an urgency in creation of jobs for the local people. The current thinking for solving the housing problem is through real-estate business like as done anywhere else, which is almost a new concept for the country. There still is more needed to be done to facilitate this type of business such as changing existing laws on land ownership and laws on mortgage etc. All these measures will soon be taken up and fast-tracked as our version of ‘welfare-state’ is being built, after which the problem of jobs will come again around with a vengeance. This time it will be in the form of home-owners who needs jobs to pay for mortgage!
Fortunately we currently seem to have the capacity to provide jobs for prospective homeowners and taxpayers in the private sector as well, but its by no means in an orderly fashion. Our current job market is in serious chaos and it needs drastic restructuring to be efficient and useful for the local economy.
Broadly here are the industries and the situations thereof which needs to be taken in to consideration. Tourism industry:
Tourism industry provides most jobs for local economy and this industry can still provide more opportunities by quota adjustment by profession. Currently the situation is that almost any number of foreign workers for any position can be employed for any length of time. Apart from a requirement that 50%ratio of expats to locals workers need to be maintained (even which is not a hard or fast rule!) there is no more encouragement for employing local workers. Construction industry:
construction industry has vast potential for local economy but is actually the worst in terms of work opportunity for local workers. Its not a problem of lack of talent but rather lack of willingness to tackle corruption in the industry. Construction industry as its currently running is only useful for a handful of big contractors and a few smaller ones who are have the right connections to the big ones. Its almost a no-go area for local artisans and craftsmen because of lack of job security, poor work conditions, and extremely meagre wages designed to discourage local workers. Being businesses everyone tries to get the most profit which equates to finding the cheapest labor which is where the local worker looses out. Fishing industry:
This is one industry which can be better managed by innovative means. Only depending on one type of product, one type of boats, and one methodology to fish have exhausted the industry and drastic measures needs to be made to revive the industry. Agriculture industry:
Although we would love to call it an industry, we do not yet have much of agriculture in any comparable industrial scale. Because our islands are small and soil is not very fertile, traditional methods of agriculture as practised in other countries will not work. Things like hydroponics and aquaculture are perfectly suitable for some varieties and needs to be propped up. A most pressing problem for this industry is financing and small business assistance, which also needs to come up somehow somewhere and the sooner the better! Manufacturing:
Apart from The Static-Company (they export R/O plants) we do not yet seem to have any exportable manufacturing products but there are many encouraging signs. We have successful businesses in bottling plants for water and soft-drinks and a few canning factories for fish cans. What we can successfully introduce to local economy with little effort and financing include, cookies, biscuits, soap, detergent, lotion , perfume etc. These small scale productions can be introduced to aspiring enterprising souls through chambers-of commerce activities and small businesses initiatives. Financing:
There is great urgency in propping up institutions and mechanisms to help create and sustain other industries by providing capital and finance services. With the upcoming income tax regulations and associated restructuring, its hoped that the government will not be forced to take loans from local banks which is the cause of all financing woes the the country faces.
Minimum wage is an emotive issue which has broad consensus of acceptance. Its evident from the ongoing dialogue on the issue in various media outlets. There was an attempt to set up a minimum wage for the country to prevent labour exploitation in the past which was duly shot down by the pro-business lobby in the People’s Majls. The current attempt to set the minimum wage comes at a time the balance of power is shifting in favour of the ruling MDP party which hopes to re-energize the local economy by creating more jobs for the locals, releasing and unsustainable peg on dollar to rufiyaa and introducing long overdue tax reforms. Although there are voices of dissent only from the bussiness lobby which includes resorts owners such as Villa group chairman Gasim Ibrahim, Sun Travel Shiyam the minimum wage issues is expected to proceed through People’s Majlis.
Contrary to popular belief, minimum wage when it becomes reality will not be as high as is expected of it. The figure could be based on criteria such as type of work or age of worker etc or one all encompassing one figure such as 2000.00rf etc. It remains to be seen how the the figure is arrived but one criteria the govt. will have on mind is to device it in such away that the current labour exploitation will be halted by this one stroke of legislation. The Minimum wage figure need only to be above the edge the employers are employing expatriates over locals such as 70$ or 100$ per month levels. With these levels of pay, the workers (often expatriates) are enduring back-breaking work in exploitative conditions and suffering for years on end without any regard to rights and benefits of work. If the minimum wage figure is higher than these levels, there is a good chance that construction industry will be more favourable for local employment.
The business lobby will work hard to undermine this measure and yet they do not have convincing arguments against the measure. Vague observations like “we will go bankrupt.. if this happens” only exposes the depth of their understanding of basic issues in running a business. If they do not offer credible objections or alternatives , then they are just a voice and no more. Running a business is no more like a running a slave-trade operation. That was some time back and does not reflect current working condition in resorts or construction industry or anywhere else.
Its wonderful news that the Tourism Ministry wakes up to reality and is dropping out of the fake marketing scam thats called new 7 wonders of whatever it is! Maldives is beautiful as it is. The country has a booming tourism industry and can do very well without fake marketing by fine-tuning the tourism industry; bringing progressive changes, innovating good practices, caring for the industry workers etc etc. The primary purpose of these ‘precious’ marketing schemes is to generate cash for themselves and is bewildering how mature brains can fall for frauds like this. The energy that went to get the country ‘voted’ to poll position clearly shows the enthusiasm that went to believe in the hoax in the first place. Departing guests were made to vote on-line at the airport in support raising of our ranking in the scheme. School students, civil service workers, common folks all voted like mad to give the country a poll position in the new7wonders all the while not knowing the fraudulent nature of the marketing scheme! Now that the hoax is out with the realization that its not the beauty of the country that counts but rather the amount of money we can produce to get the rankings, its time to quit and focus our energies on where it matters. At the industry, the visitors, the islands and the people that makes the it tick! (the workers– like us).
The government has added May 1 to the list of official public holidays after a cabinet meeting yesterday. Its an improvement from over the years where a day for workers rights was unheard of. Workers rights in the Maldives has largely been championed by the tourism sector workers who have put a lot of effort to raise the issues of workers and has suffered the most. The last workers rally conducted by the TEAM was attended by a few dedicated resort workers and was a novelty kind of approach to voice workers issues. The few attendees held placards displaying various issues faced by the workers. The issues included calls to implement the provisions of labour law as well as demands to review the labour laws! The situation is worse this year as recent patches to labour law crafted by MATI (resort owner’s cartel) has been added in to labour laws, which almost effectually bans workers protests in resorts.
The employers appears still firmly locked in medieval mindset when it comes to playing fair with the workers. What has to dawn on employers is the fact that a happy, loyal, motivated workforce will be more productive and more beneficial for the business they are employed in. It doesn’t make anybody a genius to know that and to apply these. It would also be universally acknowledged that employers in this day and time couldn’t be that daft not to know such a basic truth. However it should be beneficial to be reminded that we are dealing with the same employers who raised fears that resorts would have to hire double the amount of staff they were currently employing just to comply with the 8 hour work rule when the labour law was enacted. Its a sign of how low the employer class been and how much catching up there is.