On a small island, the dominance of any one market is being felt tenfold more.
China is now by far the number one market for the Maldives, and it is no longer seasonal. Last year, there were around 350,000 Chinese visitors. The next biggest market, Germany, is four times smaller, with about 80,000 pax.
Mainland Chinese travellers are everywhere now of course, but on a small island, their dominance is as conspicuous as the heat. European tour operators such as Devan Kevan, a director at Chic Locations UK, make no bones about the danger of having any one market dominating the mix.
“It’s not being racist, it’s a fact that when any nationality goes beyond 25 per cent of the mix, it becomes an issue. It’s up to each hotel which way they want to direct their business. We can only say how this might impact you; we would be wrong to just sit back and say this is not going to impact you.”
Asked what the impact was, Kevan noted that even the top 10 per cent of the China market would move out. “So you’re not going to lose just your Europeans and other Asians, but the real luxury Chinese travellers.
“We have notes on our website that the profile of the clientele has changed, but the hotels we’re working with in the Maldives have given us the assurance that they will limit the number of any nationality – Brits, Russians, Italians – so that none will dominate.”
Hotels are equally aware and a full force was at ITB wooing the European market in earnest. However, the eurozone debt crisis is not helping. Thomas Barguil, general manager of The Residence Maldives, which opened in April last year, said his target mix was 60 per cent Asian and 40 per cent European, but admitted: “Even that is a huge challenge. The older resorts themselves are trying to hang on to their loyal clientele, but they too find it difficult.
“It does have an effect on European clientele, but it’s happening all over the world. Their (the Chinese) buying power is high and we hoteliers have to survive.”
Badr-Eddine Rakmi, Banyan Tree Hotels & Resorts sales manager Maldives, said: “Markets like Spain and Italy won’t come back. The UK, France Germany still give us good numbers. We’re lucky to have a lot of repeaters and are striving for a good mix – no one likes to have one big of anything, but it is hard, especially for the new resorts.”
That does not stop the newcomers, including Dusit Thani Maldives, which opened September last year, from luring loyal guests of older resorts their way while building their own markets.
Said Dusit Thani Maldives general manager Desmond Hatton: “The response to the Maldives and to our resort at ITB has been extremely positive.
“New resorts always attract interest and, by offering real value and excellent service, we’ve been able to get a lot of clients from the German-speaking markets to switch to Dusit Thani Maldives.”
Hatton eyes an occupancy of 62 per cent and an ARR of US$700 for this year.
Banyan’s Rakmi observed that competition was intensifying. “As more projects come online, five stars are selling at four stars. Many Europeans and Japanese now stay at three- to four-star hotels but stay longer. The Chinese market is the one that can afford real luxury though the stay is shorter,” he said.
This article was first published in TTG Asia, March 22 – April 4, 2013 issue, on page 4. To read more, please view our digital edition or click here to subscribe.
