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Country Commercial Guides for FY 2000: Maldives Report prepared by U.S. Embassy Colombo, Sri Lanka, released July 1999   Note*

CHAPTER IV

LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

Areas of opportunity for U.S. exports are primarily in the tourism sector, and relate to the development of new resorts, which are required to be self-sufficient (in terms of power, water supply, and waste management), as well as refurbishment, maintenance and supplies for the 81 existing resorts and hotels. Occasionally, existing resorts are bought by investors and renovated and refitted; such projects have recently been undertaken and completed by two major hotel groups, Hilton and Four Seasons. The Ministry of Tourism has also announced plans in 1999 to open bidding for a five-star hotel to be built in the capital, Male', and is exploring the possibility of introducing cruise tourism in the Maldives.

Building materials: Maldivian builders traditionally used coral for building construction. In an effort to encourage construction with materials other than coral for environmental protection purposes, the government slashed duties from 35 percent to 5 percent on building materials. In March 1999, the government announced a ban on all coral mining for construction of tourist resorts, including breakwaters.

Power generators, water desalinization equipment/systems and waste treatment facilities: Each resort is required to develop its own power and potable water supply and waste treatment systems, with a focus on environmentally-friendly, waste-minimizing technologies.

Boats, marine equipment, dive/fishing equipment and accessories: Many resorts retain a small number of motor-powered boats to ferry visitors to/from the airport, Male', and dive sites. Likewise, many resorts offer dive centers with equipment available for rental. Some also offer deep-sea fishing expeditions and require fishing gear and specialized sport fishing craft as well as dive boats.

Plumbing hardware, ceramic fixtures, interior fittings, furniture, lamps, mirrors, and other accessories, mattresses, carpeting/floor coverings, industrial kitchen equipment, and cookware supplies: U.S. products are generally very well regarded. U.S. suppliers should be prepared to emphasize the high quality and durability of their products, as they may be less cost competitive due to higher shipping costs. Many resort managers buy U.S.-made hotel supply products from Singapore-based agents, wholesalers, or traders, or directly by catalog/mail order from the United States.

Computer systems and software: Hotel/resort-specific software packages and applications would be most appropriate/sought after.

Other hotel supplies: Smaller, more frequently replaced items such as bed linens, sheets, towels, glassware, silverware, dishware, and consumable items such as pre-packaged toiletries, processed and frozen food products and ingredients, and cigarettes.

In addition to prospects in the tourism sector, there is potential for educational service exports. Given the lack of higher level education in the Maldives, U.S. training institutes and colleges/universities may find opportunities to market their courses and degrees, as well as to establish local training programs or institutions.

Sectors with investment potential include tourism--namely, the development of new resorts, along with developing related recreational and transportation facilities--as well as construction, and simple export-oriented manufacturing such as garments, processed food/beverages and electrical appliance assembly. (See the section on Investment Climate below).