Report: Uken
Tourism Minister Dr. Mahmoud Shaugy has said that the soaring price of oil in the world market will take its toll on the Maldives Tourism Industry and country’s economy.
“The ever increasing price of oil will affect the tourism sector as well as the economy, with the increase in oil prices, the air fare for the tourists to come to Maldives goes up, oil is an important factor in the operation of resorts, increased oil prices mean an increase in the operational cost of the resorts, it is an important factor that needs serious considerations” said Dr. Shaugy.
Speaking on the alternatives Dr.Shaugy noted that many resort operators are now investing in alternative means of energy. He noted the solar energy that is being used in some resorts.
“In some resorts many of the services are powered by solar energy, but not enough to cover the entire resort, what we have to aim is reducing the amount of energy used, what ever form of energy we use and that would a bonus for the environment” said the Tourist Minister.
According to report published by UNDP titled “Overcoming Vulnerability to Rising Oil Prices”, Maldives economy is rated as the most vulnerable to rising oil prices in the region. The ranking is based on weighted dimension scores and composite oil vulnerability index, OPVI.
Although the report ranked Maldives at the bottom of the OPVI, the country is in the first place in terms of economic performance. The country’s rank is reduced mainly because of its low score on economic strength resulting from the county’s negative balance of payments and budget balance positions as well as the county’s high dependency on imports says the report.
OPVI is a composite of selected indicators that reflect not only a countries economic performance and the resilience of its economy but also the extent to which it depends on imported oil.
Many countries across Asia have been badly hit by the oil hikes. Many governments have been trying to protect their economy either by means of subsidies or asking the oil companies to takr the brunt of increase in oil pricesMany across Asia have taken to streets in reaction to the increasing oil prices.
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