World Bank To Foster Local Resort Supply Chains

By Susannah Peter in Male'
November 4, 2007

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The World Bank will launch a project to involve local communities in the Maldives’ lucrative tourism industry next month.

A study funded by the International Finance Corporation, the World Bank’s private sector arm, will consider how small island businesses can supply agricultural and other services to resorts.

The tourism industry, which accounts for two thirds of the Maldives GDP by some estimates, currently boasts 86 resorts with 66 more planned over the next five years.

But resorts often function in economic isolation from neighbouring islands and their local communities. Most use imported goods and services from non-Maldivian suppliers, because local options lack quality and consistency.

The IRC funded South Asian Development Enterprise Facility (SADEF) believes heavy reliance on tourism and fishing has meant the Maldives’ agriculture industry has been neglected.

SADEF’s six-week study will identify suitable crops in relation to nearby resorts, consider the willingness of communities to work in agriculture and other services, and earmark the technology and training needed.

It will also seek to establish policies to ensure agriculture can be sustained in the Islands.

A World Bank spokesman told Minivan News the project would give islands a "stronger stake in the [tourism] industry."

"It's very easy for resorts to order high quality goods quickly from Sri Lankan or Dubai companies," he said. "Local islands have to develop that same mentality; market goods properly and organise efficient supply chains."

The Government has pledged to increase Maldivian involvement in the tourism industry. Tourism Minister Dr Shaugee has promoted the idea of resorts on inhabited islands (a practice currently barred in the Maldives) to increase local employment and closer integration of resorts into local economies.

SADEF is seeking consulting firms with experience in commercial agricultrue and exposure to the Maldives to deliver the study, and has invited applications by November 17.