Distant resorts , guesthouses and liveaboards operating far from International Airports are challenged with steep fares for tourists flying on domestic flights. How much of an impact could this be on tourism and how crucial is it that it needs a quick solution?

PUBLISHED May 09, 2019

Ahmed Abrar
Director of Sales and Marketing
Splendid Asia Pvt Ltd
This is a huge challenge for guesthouses that are not within the speedboat distance range from domestic airports. Domestic airfares will not drop without adequate laws and regulations in Maldives. We travel in many parts across the world where one to two hour flights cost 30-80 Euros maximum. This includes travelling from EU to non-EU countries (with taxes much higher than the base fares for such sectors).
In order to improve tourism across the far-flung islands from Male’, the current domestic airfares should be reduced. I do not understand why there are two sets of fares, one for the locals and one for the tourists. We should encourage more tourist to travel around the country.
Transport is vital for tourism and commerce to flourish. A well-connected transport network is necessary with a reasonable pricing structure. The reason why Male’ atoll and Ari Atoll tourism is progressing through Safari boats and Guesthouses are because the transport costs from the airport is free or affordable. On the other hand, distant islands have higher local transportation costs; hence it is difficult to sell them Government can subsidize and keep domestic airfares lower (like they are already doing for some guesthouses now), for the cause of bringing tourism growth to far-flung atolls and islands.
Air transport is the most important element to the performance of industries as it improves the efficiency of economic activity. Air transport affects the labor market, facilitates trade, tourism, boosts productivity, improves the supply chain, enable investment, provides consumer benefits and acts as a spur to innovation and increased sales. It will be very difficult for guesthouses and island tourism in “Jazeera Raajje” to survive without a subsidized or cost effective affordable air transport solution for tourists. Without flourishing guesthouses tourism, it is not going to be easy to reduce poverty throughout the Maldives. To achieve all that, the best thing any government can do is to reduce the cost of airfares for tourists to travel to the Atolls.
Making it affortable is the only way we can give the taste of local tourism to north and south. National contributions on green tax by Guesthouses in 2018 shows nearly 90% of its paid from the central 4 atolls. And the rapid growth of bed capacity of central parts shows importance of affordable transfers. The prices of Domestic Transport is obviously a big challenge for all far away tourist businesses. It has to be resolved soon with varities of options to choose from. Guesthouses businesses has been established in every atoll and in every corner of Maldives. We play a huge role while counting the number of visitors to Maldives.
We must lobby as a team to reduce domestic airfares for tourists. Especially to develop the local island tourism across the islands away from Male’ Atoll.