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CONFERENCES: MALDIVES GLOBAL DEMAND
Maldives’ global demand
AHICE MALDIVES ATTRACTS OVER 140 GLOBAL HOTEL OWNERS AND INVESTORS FOR INAUGURAL EVENT. JAMES WILKINSON REPORTS.
It was standing room only as over 140 leading hotel and tourism owners, investors and executives turned out in force for the inaugural 2024 Asia Pacific Hotel Industry Conference and Exhibition (AHICE) Maldives Hotel Investment Summit at Crossroads Maldives on August 7, when tourism and hospitality development, operations, ownership and growth in the nation took centre stage.
Held at Crossroads, the nation’s newest tourism development, and attracting delegates from across the country and the globe –including the United States, Australia, Turkiye, Singapore, India, Sri Lanka, Thailand, the United Arab Emirates, Philippines and more –the AHICE Maldives Hotel Investment Summit was created as an event to grow tourism and hospitality opportunities for the nation.
Headlining the attendee list was an unrivalled number of key investors and owners for an event in the nation, alongside a large Maldives Government contingent and leading operators from across the islands.
“This inaugural event attracted top tier local and international stakeholders including Universal, SC Capital, Atmosphere, Ares Asia, HPL, Blackstone and more,” said Watson Farley and Williams’ Head of Hotels and Hospitality Asia Pacific, Robert Williams, who was also the emcee of the event.
“That alone for me underlines the commitment to Maldives resort assets from heavyweight capital investors and the further opportunity this special destination offers,” he said.
AHICE Maldives, hosted by Wayfarer, HM, and Founding Partner JLL, was also attended by global and local operators including executives from Anantara, Accor, Cinnamon, Hard Rock, Hilton, IHG Hotels and Resorts, La Vie, Outrigger, Marriott, Minor Group, Momentum, S Hotels and Resorts, Soneva and Taj, alongside Trans Maldivian Airways, the Maldives Association of Tourism Industry, several banks, advisors and other key tourism businesses in the nation.
The arrival of AHICE in the nation was firmly welcomed by the Maldives Minister for Tourism, Ibrahim Faisal, in his opening speech.
“AHICE Maldives is a unique opportunity to for the industry to unite and share insights,” he said. “It allows us to explore the potential for growth in our tourism sector.
“Maldives is renowned for its breathtaking beauty and rich cultural heritage, standing as a promising opportunity in the global tourism landscape.
“Our government is dedicated to creating an environment that attracts and supports investors, paving the way for a successful tourism industry that benefits all.
“Our tourism sector has consistently demonstrated remarkable resilience. Amendments to the Tourism Act are opening new avenues for development, empowering investors with the flexibility and confidence to achieve our shared visions.
“One of the key advantages of investing in Maldives is our strong performance in the hospitality sector.
“We consistently rank as the top market in the Indian Ocean, showcasing significant growth in ADR and RevPAR. This impressive track record highlights the strength of our tourism industry.
“Esteemed guests and valued partners, sustainability is central to our vision for the future.
“Our government actively supports sustainable development practices and encourages all stakeholders to adopt them.
“This commitment ensures responsible growth that preserves our natural beauty and resources.
“In addition to our focus on sustainability, we value the stability of your investment in fostering successful partnerships. Our strong legislative framework absence of capital controls and flexibility on remitting earnings, provide a secure foundation for your ventures in Maldives.
“On top of this, we also allow leases up to 99 years, so you get the best value out of your investment.
“As we work towards achieving our ambitious goal of US$7 billion in tourism revenue by 2027, we are excited to share that this milestone will be supported by significant developments.
“Today [at AHICE], I encourage you to seize this moment to connect and collaborate. Engage in meaningful discussions, share your insights, and explore innovative approaches that will shape the future of our tourism sector.
“Together, we have the power to transform challenges into opportunities and forge lasting partnerships that will elevate Maldives on the global tourism stage.
“Let us unite to unlock the full potential of Maldives as a world-class destination.”
He said the upgrade of Malé’s Velana International Airport would be completed in July 2025, something that’s also going to provide a significant boost for tourism to the nation, alongside new flights from carriers like Malaysia Airlines.
“The full opening of our newly expanded airport in July 2025, with phased openings, starting at the end of this year, will enhance our connectivity,” he said.
“In addition to the airport expansion, our national carrier Maldivian will introduce a new wide-body aircraft this year.
“This new addition to the fleet targets major tourist markets and gradually expands their network, enhancing our global connectivity.
“By improving connectivity, we aim to create more opportunities for travellers, significantly boosting our tourist arrivals.”
The AHICE Maldives Hotel Investment Summit was created in partnership with JLL’s Hotels and Hospitality Group and the company’s CEO of Asia-Pacific, Nihat Ercan, said he was thrilled to see the launch of a conference dedicated to growing hospitality investment in the nation.
Ercan had a fireside chat with Soneva Founder and CEO, Sonu Shivdasani OBE, who shared his journey to creating one of the world’s most sustainable hospitality brands.
Shivdasani also praised the nation’s free labour market, “which means we can achieve absolutely higher levels of service”.
“It’s about the right balance, where 50% gives local employment, but at the same time, you can find people from outside,” he said.
“I tell our team we we’re not just an excellent resort in the Maldives, we are an excellent resort globally, so that’s helped a lot.”
Shivdasani said the Maldives needs to again focus on attracting more tourism from India, which has dropped from the top to the sixth market for the nation.
“We have to embrace India because invariably, 90% of our business will be short haul at some point and you have the largest growing economy in the world right next to us,” he said.
“India is not just going to become the most important market for the Maldives, it’s going to account for five or 10 times the next market and that’s invariably going to happen so we need to do what we can to embrace it here.”
Shivdasani also encouraged the Maldives Government to slow development of new projects in the Malé Atol and focus on driving new developments to other parts of the nation.
“I personally feel the Malé Atol is very crowded and if [the Government] is thinking about long term sustainability for the destination and thinking about long term social harmony for the country, you need to spread the tourism wealth.”
On the investment outlook panel, Ares Asia Managing Director Kieran Bestall, Prospect Hotel Advisors Partner and Asset Manager Rohan Gopaldas, Atmosphere Deputy Managing Director Corporate Shrikant Dash and JLL’s Hotels and Hospitality Group’s Senior Vice President, Ling Wei Tan, looked at the strong investor interest in the Maldives, which is expected to continue through 2024.
“There’s a lot of statistics and enablers for why you should be investing in the Maldives,” Bestall said. “It’s a very lucrative and attractive market to be in.”
To put Bestall’s comments in perspective, luxury segment in the Maldives commands a median price per key of approximately US$1.2 million, which is four times higher than the average of competitor markets Koh Samui, Bali and Phuket (at US$387,800), according to the panel’s moderator, JLL Hotels and Hospitality Group’s Senior Vice President – Investment Sales, Julien Naouri.
Gopaldas was confident on investment into the Maldives, but also highlighted one of the biggest challenges for the nation at present, being the drop in tourists for India, alongside other geopolitical risks.
“When there’s a war in Russia, it impacts the Maldives. What’s happening in India and
Palestine impacts the Maldives. So, some of those risks are things we need to think about today,” he said.
Tan said global investment interest was phenomenal at present from institutional investors, owner operators and ultra-net worth individuals alike, something that’s not expected to change.
“It has a lot to do with the fundamentals of the market and the Maldives has proven to be very resilient,” she said. “It has been very strong in terms of trading performance and an attractive destination for institutional investors.
“We are also seeing very, very strong interest from owner operators who want to set up their flag here. They will typically be looking for vacant possession, so they are very specific to anything that will fit into their brand standard is important.
“Then we also have the ultra-net-worth and they are looking for trophy assets but these rarely come on to the market and when they do, we see very strong interest from the Middle East market.
“We are also seeing Asian high net worth from Thailand and Singapore who are looking out for trophy assets here in the Maldives,” she said.
STR Senior Sales Manager – Central and South Asia, Karan Mahesh, then provided a key statistical update that noted most of the rate growth is coming from the higher-end hotels and there was an opportunity for midmarket to increase revenue further.
He also said food and beverage revenue was growing across the nation, another sign hotels are maximising that opportunity, as also seen on a global level.
On the tourism outlook session, Maldives Airports Company Limited Managing Director, Ibrahim Shareef Mohamed, said the upgraded Velana International Airport facilities, including the all-new international terminal was expected to see more carriers fly to the nation and the return of others, like Malaysia Airlines during August.
The return of Malaysia Airlines after a 10-year hiatus – which has seen prices fall in half compared to previous levels – are already having a significant impact on inbound tourism for key markets like China and Australia via Kuala Lumpur.
On the operations outlook panel, moderated by THSA Managing Director, Rodger Powell, leading hoteliers from the across the nation – including Anantara Veli, Anantara Dhigu, Naladhu Private Island General Manager Michael Parker, Holiday Inn Kandooma Maldives General Manager Mark Eletr, The Ritz-Carlton Maldives Fari Islands General Manager Renato De Oliveira, La Vie Hotels and Resorts Head of South and South East Asia Shankar Sreekumar and JLL Hotels and Hospitality Group Vice President of Asset Management Jeanette Liam – looked at opportunities and challenges, including profitability, recovery of top line, demand and supply.
The final panel and one of the most anticipated, on the growth outlook for hotels, was moderated by JLL Hotels and Hospitality Group’s Executive Vice President and Head of Transaction Advisory Services, Calvin Li, and it again proved the nation continues to be a hotspot for new developments alongside owners looking to rebrand.
The speakers – Accor Vice President Development, Singapore, Philippines, Japan, Korea and Maldives, Chris Cho; IHG Hotels and Resorts Senior Director, Development, South East Asia and Korea, Shi’ai Liang; La Vie Hotels Senior Director, Growth and Development Asia, David Wray; Marriott International Regional Vice President, Hotel Development, South Asia, Kiran Andicot; and MDC Investments LLC Chief Executive, Zayan Salih – were in synch on the growth opportunities and how much demand there is for the country.
“We see a great opportunity with our collection brands,” Andicot said. “That’s where the future lies for us in the Maldives.”
He said while there was a lot of talk around the midscale market, future growth was still a wait and see approach.
“It’s incredible how much the market has diversified,” Liang said.
Wrapping up the event, the 140 attendees enjoyed mocktails, beers and wines on the beach, with appropriately, overwater villas and the city of Malé as a backdrop.
The AHICE Maldives Hotel Investment Summit will return as a two-day event in August 2025, with venues to be revealed soon.
