Optimism over Viceroy resort in Maldives despite unrest

A resort owned by Abu Dhabi is to open in the Maldives despite violent political unrest.

Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, owns 50 per cent of the hotel management company Viceroy Hotel Group and is planning to open the Viceroy hotel in the Maldives in April.

The hotel, like most resorts in the archipelago, is on a remote island away from the capital island of Malé, where violent protests have erupted and the president has resigned.

Despite the distance, some authorities are concerned about the impact on the tourism industry.

But the operator believes that its resort, which charges up to US$17,500 (Dh64,281) a night for a three-bedroom villa, will not be affected.

"We're hopeful that it's a blip and it is something [that] will be very quickly resolved, and [that] by the time of our opening the situation will be stable," said Anton Bawab, the regional president at Viceroy.

The resort is on the private island of Vagaru, about 190 kilometres from Malé.

The property comprises 61 villas on a 17-acre crescent surrounded by coral reefs.

Mr Bawab said work on the hotel was going ahead.

"In terms of delaying the opening, the political situation has little impact," he said.

According to the Maldives Association of Tourism Industry, there have been more than 500 booking cancellations, and losses are expected to reach about $100 million over the next six months.

"Potential visitors are questioning the safety and security in the island nation, as the political turmoil in the Maldives makes headlines in the international media," the association told AFP.

Tourism is a mainstay of the economy, with many of the resorts charging well over $1,000 a night.

The Maldives' GDP last year totalled $1.48 billion and tourism directly contributed 29 per cent. Its indirect contribution is far higher. China has become the biggest source of visitors to the Maldives.

rbundhun@thenational.ae

twitter: Follow our breaking business news and retweet to your followers. Follow us

La Mer lowdown

La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.