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Riza and King (2010) developed a model of the tourism demand for small island economies such as the Maldives to identify the determining factors that contribute to that demand.This study used the number of tourist arrivals as a dependent variable in their investigation.Because the resorts which are the linchpins of the tourist industry are heavily controlled by foreign nationals, these authors estimate that only approximately one dollar in eight (less than 13%) actually goes into local coffers.
The authors noted that there is only one primary accommodation for the Maldives which is the resort, and that as a matter of policy, only one resort is permitted on any island (there are approximately 1200 islands in the Maldives).
Thus, there are currently 87 resorts in the Maldives, each with activities such as sunbathing, diving, sailing, and fishing.
In large part, the Maldives are limited by their low-lying status; no island exceeds two meters above sea level, placing all of them in grave danger due to rising sea levels as a result of global climate change.
Riza and King also noted that the typical length of stay is 8 to 9 nights and has been quite stable at that level for more than 20 years, with the vast majority staying between one and two weeks.
The proposed project will be to define a detailed business plan for expansion of an existing tourist business in the Maldives.
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The current business consists of a small travel business and a small tourist hotel in the Maldives.Additional factors included the impact of the ongoing War on Terror given that the Maldives is primarily a Muslim country.The resulting mathematical model demonstrates that tourism to the Maldives is a luxury and responds to global economic conditions as other luxury travel; the level of tourism is also sensitive to the competing destination prices and cost of travel.We are a team of Ph D writers, editors and researchers who work together to create a great free writing resource for graduate students of all academic majors.Our goal is to help you write the best dissertation or thesis project in limited time.The list of educational resources above has been handpicked, checked and analyzed by our professional in-house editors.You can rest assured that these portals and services are legit and trustworthy.This will lead to a cost-benefit analysis of these options, which in turn will lead to a set of recommendations on the options that are most likely to maximize profits and improve overall business success.The existing businesses in the Maldives consists of a small travel business, a “low class” guest house, and a small scale money transfer operation. First to determine the best routes for expansion and greater profitability of the existing businesses. Tourism is the largest sector in the Maldives economy and funds more than 90% of government tax revenue (i.e., from import duties and taxes derived from tourism) (CIA, 2011).A preliminary literature search provided an overview of both the Maldives tourism industry specifically, and also an understanding of the economics of tourism-based economies in developing regions such as the Maldives.In the following review of literature, major issues of Maldivean economy and environment are introduced to indicate key elements for consideration.