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Hotel Intelligence Maldives

Maldives Hotel and Tourism Report | November 2014 (February 2015 Update)Hotels & Hospitality Group

Contents

08 Hotel Market Overview

04 Market Summary

Tourism Market Overview 06

Investment Market Overview 10

03Market Snapshot

Constance Halaveli Maldives

Hotel Intelligence Maldives 3

Note: Maldives Hotels refers to Marketwide Hotels.Source: STR Global (YTD Sep 2014), Ministry of Tourism, Arts & Culture, JLLADR – Average daily rate, RevPAR – Revenue per available room

NEW HOTELS

Velaa Island Resort

Cheval Blanc Ranheli

Maalifushi by COMO

Centara Ras Fushi Resort and Spa

Atmosphere Kanifushi Maldives

QUICK FACTS

(2013) (2013)

1.1 millionInternational

Visitor Arrivals

385 rooms

Number of New Rooms

USD

511Revenue per Available

Room (RevPAR)

USD

737Average Daily

Rate (ADR)

69.3%Occupancy

Beach House Iruveli – USD 72 millionSix Senses Laamu – USD 70 millionJumeirah Dhevanafushi – USD 59.6 millionKonotta Island Resort – Undisclosed

NOTABLE HOTEL DEALS

Dholhiyadhoo Island ResortNikki Beach Resort & SpaMandarin Oriental MaldivesHideaway Beach Resort & SpaOutrigger Konotta Maldives ResortRadisson Maldives Hulhumale

UPCOMING HOTELS

Market Snapshot

Tourism Demand Supply OutlookAs at YTD September 2014, visitor arrivals increased by 10.1% y-o-y, underpinned by significant double

digit growth in visitors from Mainland China, South Korea and India. In

2013, visitor arrivals to the Maldives surged by 17.4% y-o-y, largely driven

by the Mainland Chinese market. Being a holiday destination, the

Maldives tend to be largely driven seasonal holiday periods in the

respective source countries.

As the leading source market to the Maldives, Mainland China comprises about 29.5% of total visitor arrivals to the country in 2013, which is almost

three times that of the second leading source market, Germany. As at YTD September 2014, Mainland Chinese arrivals registered strong growth of 14.8% from the previous year and comprised 31.8% of total visitor

arrivals to the Maldives.

The latest resort to open in the Maldives is Maalifushi by COMO

(the former Regent) on Thaa Atoll in January 2014. The property is the second property under the COMO

Hotels and Resorts brand, and comprises 33 over-water villas and

33 land suites/villas. There were four resort openings in 2013,

adding 385 rooms to the Maldives’ room inventory.

Underpinned by its liberal trade environment, increasingly dynamic private sector, and robust growth in visitor arrivals, we expect investor interest in the Maldives to remain

strong. Recent legislative changes that include acquiring islands

on longer leases as well as the opportunity to extend existing

leases will also help encourage investment demand.

rooms150

rooms rooms rooms rooms45 4565140

Constance Halaveli

4 Maldives Hotel and Tourism Report

Known for its crystal-clear waters and idyllic sandy beaches, the Maldives has established itself as the leading destination for luxury vacations, boasting one of the highest concentrations of high-end resorts in the world. The Maldives’ unique location in the middle of the Indian Ocean adds to its exclusivity. Beyond its unrivalled scenic landscapes popular among the diving community, the archipelago also offers visitors deeper insights into its well-preserved indigenous culture and traditions.

The total number of international visitors to the Maldives has increased solidly since 2002. Year on year (y-o-y) growth has risen annually except in 2004 due to the Indian Ocean earthquake and tsunami and the impact of the global financial crisis in 2008-09. Between 2002 and 2013, visitor arrivals to the Maldives grew at a cumulative average growth rate (CAGR) of 7.2%. A government initiative to implement the ‘one resort, one island’ policy has made the Maldives unique compared to other resort destinations. According to the Maldives Tourism Promotion Board traditional honeymoon and high-end tourists for luxury resorts continue to grow. But there has also been a steady rise in niche markets, such as family holidays, diving tours, conservation trips and visits to the many Maldivian atolls to experience its local culture.

The majority of international visitors fly into the Maldives by air via its main port of entry, the Ibrahim Nasir International Airport (or more commonly known as Malé International Airport). It is located on Hulhulé Island, which is about 15 to 20 minutes away by ferry from Malé.

The Maldives is a nation of low-lying coral islands scattered across the Indian Ocean, just north of the equator and southwest of the Indian peninsula. Stretching for more than 800 kilometres from north to south and covering a total area of 90,000 square kilometres, the Maldivian

Archipelago comprises a total of 1,192 coral islands (of which only about 290 are inhabited) formed around a double chain of 26 atolls.

The 26 geographical atolls are formally grouped into 20 administrative atoll groups, of which only (parts of) 10 are open to tourism.

GROWTHYear on year growth has risen annually except in 2004 due to the Indian Ocean earthquake and tsunami and the impact of the global financial crisis in 2008-09

VISITOR ARRIVALSBetween 2002 and 2013, visitor arrivals to the Maldives grew at a cumulative average growth rate of 7.2%

Market Summary

Sri Lanka

Maldives

INDIANOCEAN

India


MaléAs the capital of the Maldives, Malé is the epicentre for much of the country’s political, economic and social activities. Although it is geographically located in Kaafu Atoll, it is managed as a separate administrative district from the rest of Kaafu Atoll. The heavily-urbanised island is home to slightly less than one-third of the nation’s population, despite spanning just 5.8 square kilometres. Out of the 19 hotels registered with the Ministry of Tourism, Arts and Culture, 15 are located within Malé, of which almost all are locally-run hotels. The only internationally-branded hotel is Hotel Jen Malé.

Malé Atoll (Kaafu Atoll)Also known as Kaafu Atoll, Malé Atoll comprises of the North Malé Atoll, South Malé Atoll, Kaadshidhoo Island and Gaafaru Atoll as an administrative region. Malé Atoll is most popular among visitors, due to its geographical proximity to the capital island and its strategic location of being home to the Malé International Airport. As at the end of 2014, the atoll has about 8,800 beds, or almost 40% of the total bed capacity for resorts on this administrative atoll. Major luxury resorts in this atoll include the 130-villa One&Only Reethi Rah, the 96-villa Four Seasons Resort Maldives at Kuda Huraa, the 45-villa Gili Lankanfushi, the 48-villa Banyan Tree Vabbinfaru, the 45-villa Angsana Ihuru, the 64-villa Taj Exotica Resort And Spa, the 33-villa Cocoa Island by COMO and the 43-villa Huvafen Fushi.

Ari Atoll (Alifu Atoll)One of the largest atolls in Maldives, there are about 18 inhabited islands with a population of around 14,000 in the administrative regions of North and South Ari Atolls, also known as Alifu Atoll. In total, there are close to 30 resorts with about 6,000 beds (or about 25% of total bed capacity for resorts) as at the end of 2014, being the second most popular location after the Malé Atoll. The North and South Ari Atolls are popular amongst dive enthusiasts, and are generally known for cheaper accommodation in many locally-managed resorts. The preferred mode of transport for accessing the resorts is by speedboat and seaplane. Major branded resorts on these atolls include the 150-villa Conrad Maldives Rangali, the 78-villa W Retreat & Spa – Maldives and the 86-villa Constance Halaveli Resort.

Baa AtollLocated to the north-west of Malé Atoll, Baa Atoll consists of three separate natural atolls with 75 islands of which 13 are inhabited by a population of over 8,000 people, and nine others are dedicated to resorts. Baa Atoll has been designated as a UNESCO World Biosphere Reserve since 2011, and has successfully attracted some 350,000 tourists annually. Luxury resorts on this atoll include the 102-villa Four Seasons Resort Maldives at Landaa Giraavaru, the 100-villa Dusit Thani Maldives, the 55-villa Soneva Fushi by Six Senses and the 79-villa Anantara Kihavah Villas which provides the original desert-island hideaway experience on one of the largest islands in the Maldives. As at the end of 2014, Baa Atoll contributes to about 8% the total resort bed capacity with approximately 1,900 beds.

POPULARITYMalé Atoll is most popular among visitors, due to its geographical proximity to the capital island and its strategic location of being home to the Malé International Airport

UNESCO RESERVEBaa Atoll has been designated as a UNESCO World Biosphere Reserve since 2011, and has successfully attracted some 350,000 tourists annually

Maldives Ihavandhippolhu Atoll

Thiladhunmathi Atoll

Faadhippolhu Atoll

Fasdhūetherē Atoll

Goidhu Atoll

Kaashidhu Atoll

Gahaafaru Atoll

Malé Atoll

Malé International Airport

MALÉ

Felidhe Atoll

Vattaru AtollNorthern Vattaru Atoll

Southern Vattaru Atoll

Kolhumadulu Atoll

Maamakunudhoo Atoll

Maalhosmadulu Atoll

Baa Atoll

Ari Atoll

Thoddu AtollRasdhu Atoll

Huvadhoo Atoll

Fuvahmulah Atoll

Addu Atoll

Haddhunmathi Atoll

Gan International Airport

Source: Ministry of Tourism, Art and Culture, Republic of Maldives

International Visitor Arrivals to the Maldives (2002-2021F)Number of Visitors Number of Visitors

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11 20

12

2013

20

14F

2015

F 20

16F

2017

F 20

18F

2019

F 20

20F

2021

F

Visitor Arrivals Annual Growth (%)

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000

-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%


Viceroy (Vagaru)

TOURIST ARRIVALSIn 2013, visitor arrivals registered significant growth of 17.4% over the previous year to reach 1.1 million (this is the first time that visitor arrivals have crossed the one-million mark)

SEASONAL FLUCTUATIONSThe Maldives tourism market is experiencing fewer seasonal fluctuations as Chinese arrivals are now filling traditional lull periods (June to August)

Since the establishment of the Ministry of Tourism, Arts & Culture in 1972 with only 1,097 tourist arrivals that same year, it has grown rapidly over the decades to 1.1 million in 2013. Throughout the 1970s, 1980s and 1990s, Europe had consistently been its major source market comprising between 70% and 80% of tourist arrivals. In the late 2000s, Europe’s market share of tourist arrivals was gradually eroded by visitors from Asia, in particular Mainland China, following rapid economic growth.

Overall Visitor Trends

In 2013, visitor arrivals registered significant growth of 17.4% over the previous year to reach 1.1 million. It was also the first time that visitor arrivals have crossed the one-million mark, which was largely attributable to tourist promotion campaigns as well as new air routes to the Maldives arising from its Open Skies Policy. The Maldives is currently served by 32 air carriers, as compared to other destinations in the Indian Ocean such as Mauritius (19 air carriers) and Seychelles (7 air carriers). As at YTD September 2014, visitor arrivals increased by 10.1% y-o-y, underpinned by significant double-digit growth in visitors from Mainland China, South Korea and India.

The Maldives experiences higher visitor arrivals during the months of October to April and lower volume during the monsoon season from June to August. This is mostly due to a higher number of European travelling during the winter. Yet with the growing significance of tourist arrivals from Asia and especially from Mainland China, the Maldives tourism market is experiencing fewer seasonal fluctuations as Chinese arrivals are now filling traditional lull periods. Being a holiday destination, arrivals to the Maldives tend to be largely driven by the holiday season in the respective source countries. As a result, peak visitation months can be observed in October during the UK half-term school breaks and Chinese Golden Week, December and January during European and Russia Christmas Holidays as well as in early February with Chinese New Year.

In its Fourth Tourism Master Plan 2012, the government has projected a double-digit increase in international visitor arrivals for the ten-year period to an estimated 2.5 million by 2021, more than double of the current arrival figures achieved in 2013. The government is optimistic in achieving this growth through a deeper partnership between the public and private sectors of Maldives tourism.

The average length of stay recorded a decrease from 2002 to 2013, mostly due to the increase in Asian travellers who tend to stay for shorter periods due to shorter holiday seasons. Nevertheless, the Maldivian government has projected a gradual increase during the projection period

Tourism Market Overview


Source: CAPA – Centre for Aviation & OAG

Top 10 Source Markets to the Maldives (YTD Sep 2014 vs YTD Sep 2013) – By Nationality

Number of Visitors Annual Growth (%)

-20% -10% 0% 10% 20% 30% 40%

0

50,000 100,000 150,000 200,000 250,000 300,000 350,000

Mainlan

d

China

German

y U

nited

Kingdo

m Russ

ia Ita

ly Fra

nce

India

Japan

Sou

thKore

a

YTD Sep 2013 YTD Sep 2014 % growth (YTD Sep 2014 vs YTD Sep 2013)


Average Length of Stay – International Visitor Arrivals to the Maldives (2002-2021F)Number of Days

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11 20

12

2013

20

14F

2015

F 201

6F

2017

F 20

18F

2019

F 20

20F

2021

F

9.08.58.07.57.06.56.05.55.04.54.0

Rank International Air Carrier Estimated Market Share (based on seat capacity)

1 Emirates 17.7%2 Sir Lankan Airlines 15.4%3 Singapore Airlines 9.2%4 MEGA Maldives Airlines 7.5%5 Qatar Airways 5.0%

Table 1: Estimated market share of top 5 air carriers


LEADING SOURCE MARKETMainland China is the leading source market to the Maldives (29.5% of total visitor arrivals to the country in 2013, which is almost three times that of the second leading source market, Germany)

NEW AIR ROUTESThe rapid growth of the key markets is mainly facilitated by the introduction of new air routes and an increase in air capacity for existing routes

in the Fourth Tourism Master Plan 2012 back to about 7.5 days in 2021. The authorities will be introducing more attractions such as community-based tourism, alternative accommodation options such as guesthouses on inhabited islands and sea-based accommodation, to further entice visitors to stay on longer to explore more of the island nation.

Chartered flights have also boosted the increase in arrivals, especially in previously unexplored routes such as Seoul-Incheon to meet the demands of new markets.

The three largest markets in terms of seat capacity, the United Emirates, Sri Lanka and Singapore, are mainly key transit markets, as they are not high on visitor arrivals. Emirates, along with Etihad Airways and Qatar Airways, are major players in providing accessibility for European visitors. Sri Lankan Airlines and Singapore Airlines, along with the Chinese air carriers, likewise serve the fast-growing Chinese market.

Other emerging geographical source markets to the Maldives in 2013 include South Korea, India and Russia, which posted year-on-year gains of 26.6%, 18.8% and 15.2%, respectively. The Middle East and Southeast Asia have also shown significant growth rates of 46.7% and 46.1% respectively although they comprise less than a tenth of overall arrivals A key source market to note in recent years is Eastern Europe, which has doubled within the past three years, supported by high double-digit growth.

Major Source Markets

The composition of major source markets of international visitors has changed in recent years. The shift in market composition with Asian demand gradually catching up with that of European demand can prove to be healthy for the Maldives tourism market as the balance partially negates the impact of seasonality and diversifies demand thus softening the heavy impacts of a crisis in any one part of the world. The fastest growing source markets in 2013 include Mainland China (+44.5% y-o-y), South Korea (+26.6% y-o-y) and India (+19.8% y-o-y).

As the leading source market to the Maldives, Mainland China comprises about 29.5% of total visitor arrivals to the country in 2013, which is almost three times that of the second leading source market, Germany. Growth in the Mainland Chinese market has been remarkably fast over the past few years growing from 60,666 in 2009 to 331,719 in 2013. As at YTD September 2014, Mainland Chinese arrivals registered strong growth of 14.8% from the previous year and comprised 31.8% of total visitor arrivals to the Maldives.

The rapid growth of the key markets is mainly facilitated by the introduction of new air routes and an increase in air capacity for existing routes. While direct flights from Mainland China to the Maldives have been scarce or non-existent in the past, there are now direct flight connections from seven cities via five airlines, with Maldivian Airlines recently introducing a once-weekly flight connection from Wuhan which began in June 2014.

Marketwide Trading Performance in Maldives

Source: STR GlobalNote: Rates inclusive of Service Charge

0 100

200

300

400

500600700800

10% 0%

20% 30% 40% 50% 60% 70% 80% 90% 100%

2003

20

04

2005

20

06

2007

20

08

2009

20

10

2011

2012

20

13

YTD Sep

t 201

3

YTD Sep

t 201

4

ADR/RevPAR (USD) Occupancy (%)

ADR (USD) RevPAR (USD) Occupancy (%)


Hotel Market Overview

Konotta Island Resort

OCCUPANCYOccupancy has grown and remained fairly robust for a resort destination

EXISTING SUPPLYAs at September 2014, there were a total of 26,975 beds that were considered operational in the Maldives

Hotel Trading Performance

Overall marketwide trading performance for the Maldives has staged a strong recovery since the global financial crisis. Unlike other markets which rebounded after 2009, the Maldives continued to suffer from declines in ADR during 2010 as the Eurozone sovereign debt crisis affected European demand significantly. Nevertheless, market trading performance subsequently rebounded quickly with consistent y-o-y growth that exceeded the peak achieved in 2008. Occupancy has likewise grown and remained fairly robust for a resort destination. As at YTD September 2014, a strong 13.9% y-o-y increase in the average daily rates has spurred a significant 11.1% rise in RevPAR from the previous year, despite occupancy declining slightly by 1.8 percentage points.This signified strength in the marketwide trading performance even as new supply has entered the market. As growth from emerging Asian markets continues, the outlook for the Maldives is fairly positive especially as infrastructure and airlift continues to improve.

Existing Supply

According to the Ministry of Tourism, Arts and Culture, a total of 112 resorts with 23,917 beds, 18 hotels with 1,542 beds, 195 guest houses with 2,723 beds and 163 vessels with 2,711 beds were registered in the Maldives as at September 2014. Of the registered capacity in September 2014, there were a total of 26,975 beds that were considered operational, comprising of 22,905 beds in 104 resorts, 1,380 beds in 15 hotels, 1,401 beds in 98 guest houses and 1,289 beds in 81 vessels.The latest resort to open in the Maldives is Maalifushi by COMO (the former Regent) on Thaa Atoll in January 2014. The property is the second property under the COMO Hotels and Resorts brand, and comprises 33 over-water villas and 33 land suites/villas.

There were four resort openings in 2013, adding 385 rooms to the Maldives’ room inventory. The 150-villa Atmosphere Kanifushi Maldives on Lhaviyani Atoll, is the first resort to be opened under the Atmosphere brand. Opening in the same month was the 50-villa Velaa Island Resort at Fushivelavaru Island on Noonu Atoll. The 45-villa Cheval Blanc Randheli, which opened in November 2013, is 40 minutes’ away from Malé International Airport by the resort’s floatplane (a nine-seat Twin Otter). Also opening in 2013 is the four-star Centara Ras Fushi Resort and Spa,

Additions to Hotel Supply in the Maldives

Source: JLL

0

500

1,000

1,500

2,000

2,500No. of Rooms

Future Supply

2010

125

577

166385

21061

1,000

2,206

2011 2012 2013 2014 2015F 2016FOnwards

New Supply


Jumeirah Dhevanafushi

FUTURE SUPPLY 2014Two other resorts will open in the second half of 2014, adding another 210 rooms to the hotel supply by the end of the year

SUPPLY BEYOND 2014There will potentially be 1,000 and 2,206 rooms added to the hotel market in 2015 and 2016 respectively

which is 15 minutes away from Malé International Airport by speedboat. This resort, comprising 140 suites and villas, is Centara’s second property in the Maldives.

Future Supply

Two other resorts will open in the second half of 2014, adding another 210 rooms to the hotel supply by the end of the year. The Hideaway Beach Resort & Spa will comprise 100 villas of international luxury standard upon completion of refurbishment and extension works. It was previously operated as an upscale resort with 49 villas since December 2005. The Centara Hudhufushi Resort & Spa, newly constructed at an investment cost of USD36 million, will have approximately 110 rooms of international four-star standards to the Lhaviyani Atoll.

Looking ahead, there will potentially be 1,000 and 2,206 rooms added to the hotel market in 2015 and 2016 onwards respectively, should all projects materialise as planned. Previously stalled projects, such as the 50-villa Konotta Island Resort, 100-villa Dholhiyadhoo Island Resort, and the 119-villa Nikki Beach Resort & Spa, are expected to resume construction ahead. Carlson Rezidor is set to establish its presence with the anticipated openings of the Radisson Maldives Hulhumale and Radisson Plaza Resort Maldives Naagoshi. Luxury hotel groups, Mandarin Oriental Group and the GHM, have also announced plans to expand into the Maldives with the introduction of Mandarin Oriental Maldives and the Chedi Dhapparu respectively.

Although many islands have been successfully tendered for development, in reality, only a fraction of the projects will materialise in its succeeding years immediate year as planned. High development risks are underscored by high costs and various challenges involved in resort development from scratch.

Source: JLL

Table 2: Recent Key Transactions

Property Name Location Year No. of Rooms/Villas Price (USD) Price per Room / Villa (USD)Konotta Island Resort Gaafu Dhaalu Atoll 2014 48 Confidential ConfidentialBeach House Iruveli Haa Alif Atoll 2014 83 72,000,000 976,000Herathera Island Resort Addu Atoll 2014 271 33,300,000 123,000Six Senses Laamu Laamu Atoll 2013 97 70,000,000 722,000Jumeirah Dhevanafushi Gaafu Alifu Atoll 2013 35 59,600,000 1,703,000Niyama by Per Aquum (50% stake) Dhaalu Atoll 2013 86 Confidential ConfidentialConstance Halaveli Resort Alifu Alifu Atoll 2013 86 92,000,000 1,070,000Angsana Velavaru Maldives Dhaalu Atoll 2012 113 71,000,000 628,000Soneva Gili / Gili Lankanfushi North Malé Atoll 2012 45 Confidential Confidential


Investment Market Overview

Gili Lankanfushi

Investment Market Highlights

Historically, arms-length transactions of operating resorts in the Maldives have been scarce. Investment activity has instead largely gravitated towards projects on islands that have been tendered out for resort development by the Ministry of Tourism, Arts and Culture. Given the constraints associated with such form of investment, interest in these situations has been typically spearheaded by domestic investors or foreign groups that have partnered with domestic investors. In turn, these groups have either progressed with resort island developments under a direct master lease or they have leased the island to a sub-lessee for development and/or operation.

Undeterred by short lease periods of 50 years or less, demand for operating resorts in the Maldives remains high as it avoids the risks and challenges relating to development projects and provides immediate representation and cash flow to an incoming investor. As a gateway luxury resort market, interest in the Maldives is far ranging and includes owner-operators keen to establish or expand their presence across the archipelago as well as private investors affiliated with operators or investors that are attracted by the opportunity to own a luxury resort in the Maldives.

Underpinned by its liberal trade environment, increasingly dynamic private sector, and robust growth in visitor arrivals we expect investor interest in the Maldives to remain strong. Legislative changes that include acquiring islands on longer leases as well as the opportunity to extend existing leases will also help encourage investment demand. The government's proactive policy-making can be seen in the successive extension of island leases from 21 to 25, 35, 50, and most recently, a bill to extend it further to 99 years has been raised for parliamentary approval. This will further spur investor appetite for the region.

Although the Maldives has always been highly dependent on tourism in the past, the government hopes to explore other aspects of that its economy can offer. In June 2014, the Maldives' government has recently put forth a bill to develop new industries to bring in other sources of income. Countries such as Singapore, the United States, Germany, China and India have all expressed interest in investing in the Maldives. When passed, this will further brighten the outlook for the investment market in the Maldives.

AVAILABILITYThe limiting factor for investments will continue to be the lack of availability of resorts for acquisition

INTERESTThanks to its liberal trade environment, increasingly dynamic private sector, and robust growth in visitor arrivals investor interest in the Maldives is expected remain strong


10 things you need to know about the Maldives1. One of the few remaining pristine natural islands, crystal-clear

waters and idyllic sandy beaches with limited human intervention, as well as a warm and tropical climate all year round – suitable for island resort tourism;

2. Leading destination for luxury vacations, with one of the highest concentrations of high-end resorts in the world. Around a third of visitors spend more than USD 5,0001 in a single trip;

3. Perceived to be an exclusive, exotic destination and unique location in the middle of Indian Ocean;

4. One of the safest travel destinations in the world, as island resorts are highly isolated and less accessible by non-resort guests;

5. Unique model of island development – ‘one island, one resort’ concept that is not replicated anywhere else in the world. It maintains significant income opportunities across all operating departments with virtually 100% capture rate and an average length of stay of 6.7 days;

6. Only island resort destination in the Indian Ocean that adopts an Open Skies policy, thus encouraging more air connections and the potential to increase tourism;

7. Relatively balanced market composition of visitor source markets from both Europe and Asia – encourages demand diversification as well as the reduction of any of seasonal impacts;

8. New emerging source markets, e.g. Mainland China, India, Russia, with increasing flight connectivity;

9. Liberal investment climate supported by pro-market policies and generous incentives for foreign investment including full ownership rights, legally-backed investment guarantees, long-term land leases and the ability to fully repatriate profits; and

10. Pegged currency exchange to United States dollars, which leads to increased investment certainty.

1 Source: Ministry of Tourism, Arts and Culture (April 2013) Maldives Visitor Survey 2013 February http://www.tourism.gov.mv/downloads/Visitor_Survey2013.pdf

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Jones Lang LaSalle Property Consultants Pte Ltd | CEA Licence No. L3007326E© 2015 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

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