I am quite optimistic about the prospects for this year and beyond, since the Maldives is seeing good growth rates from key markets visiting the country. As of August 22nd, arrivals into the destination totaled 713,741, accounting for 65 percent of all arrivals to the Maldives in 2019. The good news is that the Maldives is gaining traction as international restrictions loosen and borders reopen.
According to the most recent HVS data (https://www.hvs.com/article/9089-market-snapshot-asia-pacific-2021) we see a better picture in terms of ADR compared to 2019 although revpar is lower by $6 compared to 2019. This clearly demonstrates that the destination’s topline story depicts the “sunny side of life”, and the steady revpar indicates that the destination has delivered profitable occupancy and pricing.
In terms of average duration of stay, we’re seeing a similar scenario to what we saw during the 2008 economic crisis, so it’s worth reviewing the patterns that followed in the years following the crisis. Although there was a downward trend during this time (2009), the total duration of stay rose to 9.1 days. (source MOTAC 2012)
As resorts continue to profit from the destination’s upward trajectory, it’s essential to recall the difficulties that existed prior to COVID (the old normal days). Are we prepared to embark on a complete recovery and still reap the benefits of the current rise in demand? The over supply of resorts with inadequate capacities to handle the demand to the destination was one of the major problems and harsh realities that were addressed in numerous coffee sessions among industry colleagues.
According to the current hotel openings scheduled between 2022 and 2025, an extra 1593 rooms will be added to the Maldives’ resort supply, thus increasing the pool of rooms that need to be filled.
Unfortunately, the current airport capacity is insufficient to cope with an excess of resort beds, much alone an increase in the number of guest houses, hotels, and safaris; nevertheless, there seems to be light at the end of the tunnel. The current Velana International Airport Expansion, which is expected to be completed in 2022, will have a capacity of up to 7.5 million people per year, alleviating some of the problems associated with limited space, increasing airlift, and increased arrivals in the Maldives. This also presents an opportunity for the Maldives as a destination to expand airlift capacity while also improving accessibility to the destination and tapping into a broader range of potential markets other than the traditional ones.
Another challenge would be to figure out ways to retain the flow of tourists in to the destination. As other destinations open up and regulations loosen, specific measures must be devised to combat strong competition from destinations such as Seychelles and Mauritius, which have the same customer base, and may cause the Maldives to lose market share to them. In order for the destination to work on a plan and strategy its important to identify the current trends that has paved its way in this new normal era. According to several industry analysts, the following are some of the major tourist trends and future developments that will influence travel and which can be used as part of future marketing plan:
– Group Travel – Despite the Maldives’ reputation as a sanctuary for couples and small families, there will be a desire to reconnect with friends, organize incentive vacations that businesses have postponed, and hold wedding festivities. It seems that there is a marketing gap for this sector of the market as a destination, and it may be the perfect moment to begin adding an alternative narrative to the marketing pitch.
– Focus on older generation – In particular, elderly people have been most affected by the lockdown, since they have been the ones who have been deprived of seeing their loved ones the most. We will undoubtedly witness an increase in the number of multigenerational vacations. It is critical for a location to communicate a welcome message and develop a marketing strategy in order to attract larger families (Granparents, parents, children, cousins all holiday together)
– The need for and desire for additional “private holidays” – As the ultra wealthy choose for this, a big avenue will open for those enormous villas, private butler services, personalised chefs, and island buyouts. Be on the lookout for an uptick of private jets, as we witnessed last year during the festive season.
– Spa and Wellness – Perfect timing and a clever move by few resorts to emphasize the well-being aspect at this time. Following a difficult year, many travelers will seek out vacations that provide a feeling of peace, with an emphasis on health as a determining factor. One thing the epidemic has taught us is to prioritize self-care above everything else.
Moving forward requires a combination of skills: recognizing the difficulties ahead, devising a strategy to solve or mitigate them, analyzing the present position, and paving the way for future initiatives. Our goals have never been more intertwined than they are today; although we all want to keep the upward trend continuing, we need to know when and how to face the music rather than taking the “all choices are on the table” approach.
Learn from the Past, Adapt Forward-Looking Attitude and Go the Extra Mile
Rifaath Saeed
@rifaath.saeedRifaath Saeed is a sales and marketing specialist with a proven track record in senior leadership roles in the Maldivian hospitality industry. Currently serving as the Director of Sales and Marketing at Mövenpick Resort Kuredhivaru Maldives, Rifaa has over 18 years of industry experience; managing, re-branding and spearheading the pre-opening of a number of resort brands in the country.
Rifaath Saeed
@rifaath.saeedRifaath Saeed is a sales and marketing specialist with a proven track record in senior leadership roles in the Maldivian hospitality industry. Currently serving as the Director of Sales and Marketing at Mövenpick Resort Kuredhivaru Maldives, Rifaa has over 18 years of industry experience; managing, re-branding and spearheading the pre-opening of a number of resort brands in the country.
