Speech | Maldives Islamic Bank

Speech by the MD and CEO of Maldives Islamic Bank

Mr. Mufaddal Idris Khumri

Guesthouse Symposium 2024

Ah Salam Aleikum Wa Rahmatullah wa Barakatuhu,

Distinguished Guests,

Ladies and Gentlemen,

It gives me great pleasure to speak to you this morning and to welcome you most cordially to the MIB guest house symposium. Maldives Islamic Bank is honored to be facilitating this symposium to foster the ecosystem supporting guest house tourism. We are committed to holding this event annually and to remain at the forefront in supporting the industry ﬁnancially.

This symposium is an especially important platform to exchange knowledge and explore new partnerships. It is crucial for us to come together. All of us agree that today, collaboration is no longer an option or nice-to-have,rather a prerequisite for businesses and for a better world and future.

The word “Competition” is from a bygone age. As our civilization evolves, we do not compete, rather joinforces, pool our resources, and coexist. Competition is archaic and ﬂawed. Evolution did not happen out of sheer competition but through group effort and partnerships. There is a general saying that “Size alone meritsattention,” not always true. Maldives has broken that myth through its sheer resilience of being at the forefront of the hospitality industry. Our objective is survival of all and extinction of none.

I am very heartened that many delegates from more than seventy-ﬁve guest houses and associated industries can join us today at this symposium and marketplace. Your presence today really bodes well for the hospitalitysector which is adapting and adopting innovative solutions to grow the Maldivian economy. Together we have ashared vision of growth, prosperity, and happiness.

As one of the biggest contributors to the global GDP, the Travel and Tourism industry directly contributes about 3.6% of the world’s Gross Domestic Product (GDP) and, indirectly contributes nearly 10%. In 2023, its contribution was approximately 9.9 trillion US Dollars. One in every twelve jobs in the world is in the tourism industry. The industry also represents about 12% of the total world exports. 2023 alone witnessed a total of 1.3billion international tourists spending 5.2 trillion US Dollars on leisure. At less than two million tourist and revenues totaling USD 7 billion we in the Maldives have not even scratched the surface.

In simple terms there is so much more money to be made!

Global market trends indicate that long-haul travel, neighbouring country tourism, wellness and health holidays, cultural tourism, ecotourism, elderly and accessible tourism, sports and adventure holidays, coastaltourism and cruises are emerging areas of tourist interest. From a geographic viewpoint, there has been aremarkable rise in Asian tourists, particularly from China, India, and East Asian countries. This is the Asiancentury as Asian economies will witness enormous economic growth and increased

income levels. Further, the average age of the international tourist has also been reducing representing agrowing segment of young tourists who would typically travel to take a break from increasingly stressful professional lives. Given the above factors, robust growth in tourism is likely to continue in the coming decades.

The Maldives has been known as an exclusive resort destination since tourism was introduced in 1972. Over the decades the Maldives brand has progressed, the broad proﬁle of holidaymakers has changed and evolved. In the 1980s and the early 1990s visitors to Maldives were mostly avid divers and water sports enthusiasts. Luxuryand the spa experience became signiﬁcant in the early 2000s.

The biggest change to the product proﬁle and consequently to the visitor proﬁle occurred in 2008, when laws related to tourist accommodation were changed to facilitate guesthouse tourism in inhabited islands. Like how the resorts faced initial scepticism when they started out, the experience was not dissimilar for the guesthouses. When the ﬁrst guest house was set up in Maafushi, and others began to take root in places likeDhiffushi, and Thulusdhoo in the Kaafu Atoll, they too faced a hostile entry. Detractors of the guest-housesegment spoke of the potential for injury to the culture and the Maldivian way of life. But the forerunners of the guest house industry persisted and today we have nearly nine hundred guest houses with almost 15,000beds, accommodating almost 15% of all visitors to the Maldives. The industry today prospers on account of theindomitable belief of these initial pioneers some of whom have honoured us today with their presence. Their efforts give us a glimpse of the world they have created. It gives us hope that the next generation will followthe legacy you created for the guest house industry.

To their persistence and passion, I dedicate these immortal words of the poet Willam Ernest Henley as cited in his acclaimed poem “Invictus” meaning unconquerable or undefeated in Latin.

I am the master of my fate:
I am the captain of my soul.

Thanks to more affordable lodging options, budget-conscious travellers are increasingly opting for guest houses. Theappeal is clear: while staying in a local guest house, tourists can enjoy services, at a manageable cost.

The economic beneﬁts are clear. Local guest houses provide employment opportunities and stimulate the island economy. While these developments boost local economies and provide affordable holiday options, they also posechallenges and opportunities. The inﬂux of tourists to local islands means more interaction between visitors andresidents, fostering cultural exchange. The integration into the traditional Maldivian way of life requires carefulbalancing to ensure the preservation of local culture and values. It is no longer just sun sand and sea; culturaltourism is now an equal partner in what attracts foreigners to these shores. Cultural tourism is currently growingby 20% every year. We have a particularly good opportunity to get a decent size of this pie.

The task lies in managing this growth sustainably. Environmental concerns, such as waste management and thepreservation of marine life, needs to be addressed to ensure that the natural beauty of the Maldives remains unharmed. It is essential that the ecological footprint remains a part of the core design and development strategy. Consumption from the guesthouses must be aligned with sustainable models and sourced accordingly.

As the guest house industry continues its relentless growth there are a few mantras we abide by in the serviceindustry and yes that also applies to the banking industry as we remain a core service industry.

1. None of us is as smart as all of us.

A reminder about why running a hotel or providing hospitality cannot be done in silos or by people acting independently of one another. Often, to ﬁnd the best solution to a problem, it takes different perspectives and personalities to voice ideas before the group can decide the best course of action for the business.

Island Councils should take a more active role in managing roads, beaches, public toilets, transportation, and other public spaces in the islands, because the sector beneﬁts island economies in providing opportunities for newand existing businesses and jobs for many.

2. The best way to ﬁnd yourself is to lose yourself in the service of others.”

This profound quote by Mahatma Gandhi beautifully captures the soul of hospitality. It suggests that in the act of serving others, one discovers their true self in selﬂessness. True satisfaction comes not just from fulﬁlling duties, but from going beyond them to genuinely care for and serve guests by sharing and giving, whether you have engaged them on the level they were hoping for. “Customers may forget what you said but they will never forgethow you made them feel”.

Remember what Khalil Gibran says “You give but little when you give of your possessions. It is when you give ofyourself that you truly give.

3. “Your most unhappy customers are your greatest source of learning.”

Do not dismiss negative feedback without ﬁrst considering where it came from and why it occurred. Often, you will discover ways to improve your service – and even minute details can make a signiﬁcant difference to guests.

As the guest house industry evolves, we must ﬁnd a way to embrace this new wave of tourists while preserving the very essence that makes Maldives a world-renowned destination. I quote Robert Frost.

The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep.

We have much on the agenda today including panel discussions but most importantly we wish for you all to meet andinteract with industry veterans, colleagues and participants.

Let’s give thanks for our great fortune in being able to come together for this incredible day with purpose and determination to make a difference through our actions. Let us raise everyone’s spirits. It’s time to make a starton the world we Wish to See.

Thank you very much for giving me a patient hearing. Have a lovely day and enjoy the symposium.

Sd/-

Mufaddal Idris Khumri

CEO & MD

Maldives Islamic Bank