DTIS, Volume I - Enhanced Integrated Framework (EIF)

G. CUSTOMS SERVICES AND TRANSPORT INFRASTRUCTURE
The discussion in the DTIS of the services that facilitate trade in the Maldives is based on
recognition that tourism and fishery are the most important export sectors. Currently,
over 600,000 tourists a year visit the country, with projections for continuing growth.
This requires adequate airport, port and transport transfer facilities to service this volume
of visitors in addition to efficient importation processes for the inputs – ranging from
construction materials for building and maintenance work on the resorts to food,
beverages, and other consumer goods - required by the tourism sector. The fishery sector
also depends on the importation of critical inputs such as fuel, boat engines and other
fishing gear. Fishery exports are mostly perishable goods and therefore depend on
efficient export processes. Significant constraints in hub capacity for both air and
maritime transport need to be addressed.
Transaction costs are lower when customs procedures are carried out efficiently. The
DTIS research confirmed that there is a perception among private sector users that
customs procedures are not applied in a uniform and customary way across the country.
Malpractice is alleged arising from face-to-face contact between clients and customs
officers. But the overall assessment of the DTIS team is that customs procedures are
satisfactory although there is room for improvement.
In particular, although the customs service is computerized and officers have received
training in operating such tools and facilities, there are still gaps at the technical level
hindering an optimal use of the technology and IT software systems available. For
example, the ASYCUDA++ is not fully utilized and all potential application towards
more efficient use has not been explored. In addition, current operational systems and
procedures in the cargo control area impede the movement of goods and do not meet the
set objective of obtaining maximum revenue at minimum cost. There is also a lack of
effective communication and coordination among customs services, the trading
community and other agencies (port authority, aviation services, clearing agents, coast
guard or police), which adversely affects the efficiency of processes relating to the
movement of goods.
H. TOURISM SECTOR
Very few countries in the world can offer tourists an exotic atoll environment, and even
fewer countries in the world are made up of coral platforms, with the accompanying
image of Robinson Cruise islands and islets with white sandy beaches, unpolluted crystal
clear water and abundant marine life.
Overall, the assessment of the DTIS is that institutional capacity for the development,
management and implementation of tourism policy in the Maldives is adequate, although
there are significant gaps and policy shortcomings. There is also an almost total absence
of civil society involvement or engagement with tourism policy.
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