China nears top spot among Maldives' tourist markets

China is currently ranked second in the list of countries with the highest number of tourist arrivals to the Maldives. It took 10 months for the country to take the position to resume operations in China after being suspended due to the Covid-19 pandemic. The growth of the Chinese market has been impressive for some local travel agencies. However, the pace is much slower for some senior officials in the new government.

Chinese tourists started arriving in Maldives on 18 January 2023. The government had a lot of confidence in the Chinese market as it used to be the largest tourist destination. Chinese tourists will come to Maldives in large numbers, government officials said.

"One of the biggest mistakes made this year was to think that when China opened up, everyone would come. But that was not the case," former Tourism Minister Moosa Zameer said at the Hotelier Maldives GM Forum last week.

Zameer believes that the Chinese market should grow even more during this period. One of the biggest reasons for this, he sees, is the lack of flights between Maldives and China.

"The China market has been developed with a lot of work done over the years. [Before] Island Aviation, Mega Maldives traveled. There were seats then. Not anymore," he said.

Former President Abdulla Yameen's government maintained very close relations with China, which Zameer said played a major role in bringing the Chinese market to where it was at the time.

He said:

"This year, these things have not been done. So the Chinese have not come [as much as expected]," Zameer said.

Brief history of China market:

Although the growth in the Chinese market is conscientiously slow, Maldivian travel agencies say the number of tourists from China is higher than expected.

“It’s pretty good for the amount of work done,” said Sofwan Mahmood, general manager of Villa Travels.

Villa Travels has so far brought in China Eastern and Sichuan Airlines. Another company brought in China's Beijing Capital Airlines, while Villa Travels has also worked to launch another airline from China.

"We tried to bring China South by October. However, we postponed it to next year because of the Chinese New Year. It is expected to start flights to China South in February," Sofwan said.

In January 2020, 31,744 tourists arrived from China before the border was closed. That’s a 23% increase compared to January 2019.

The number of tourists from China has not crossed 30,000 in any month since the border was opened. However, the number of Chinese tourists has been increasing monthly during the period, according to statistics from the Ministry of Tourism.

Inner Maldives Managing Director Mohamed Firag also sees the growth of the Chinese market very positively. He says it is not long before China becomes the leading market.

“I expect China to rise to number one in the next 3-4 months,” he said.

Although the increase in the number of Chinese tourists is good, Firag said, Maldivian  agents have not played a major role in this growth.

“Actually, the big Chinese operators, based in the city and making contact with resorts and guesthouses, are doing it,” he said.

The Chinese New Year is the most important factor in Firag's prediction that China will be the number one market in the next four months. Despite previous trends, it is a time of increased tourist arrivals from China.

While there are two opinions on the expansion of the China market, Firag and Sofwan say the biggest challenge for the market is the high cost of coming to Maldives. The prices are especially high now compared to before the outbreak.

"The price problem is actually it. It's 40% higher than before the pandemic. Airline prices are 15% - 20% higher now," he said.

"If you look at the departure tax, we are one of the largest in the region."

While tourists from Europe spend longer periods of time (usually a week or two) on holiday, Chinese tourists usually spend 3-4 nights. For those coming for such a short period of time, the current cost of travel, accommodation and taxes will be very high.

Sofwan expects the current price problem to 'resolve within the next year or so'

Although Zameer's views on the China market differ from those of some travel agencies, they also believe that the way to improve the market is to increase connectivity.

Currently, three Chinese airlines are flying to Maldives and one more is expected to be launched next year.

Speaking at the forum, President-elect Dr Mohamed Muizzu said that a wide-body aircraft will be brought to Maldivian next month.

"The government will buy wide-body aircraft for the national airline next month. The aim is to increase the number of tourists coming from the recently opened China market and some other source markets," Muizzu said.

Besides improving connectivity, what the Chinese market and the tourism industry as a whole needs the most right now, according to experts, is the completion of the new terminal at the delayed Velana International Airport. That is the most important thing that Zameer also mentioned.

“The first, second and third thing to do to promote tourism is to complete the airport,” Zameer said.

The new terminal project has been delayed and there is no way to get the latest information about the project as long as the current government and MACL are in power. The new government aims to complete the project by next year's peak season. President-elect Muizzu has said he will consult with the contractors and financiers of the project to make it a success.