At the Hotelier Maldives GM Forum 2024, Mohamed Mihad, Chief Commercial Officer of Maldives Airports Company Limited (MACL), delivered a compelling presentation titled “Velana International Airport (VIA) and Tourism Development.” Mihad emphasized the vital role of Velana International Airport in shaping and supporting the Maldives’ thriving tourism industry.
He began by tracing the history of Velana International Airport, highlighting key milestones. From the construction of the first runway in 1964 to the arrival of the first tourist in 1972, Mihad recounted the airport’s growth alongside the burgeoning tourism sector. The construction of a major runway in 1976 allowed the Maldives to keep pace with rising international travel demand, a trend that continues to drive expansion. Significant developments, especially since the introduction of a comprehensive master plan in 2008, have seen the airport undergo numerous expansions, including a new terminal to accommodate the increasing number of visitors and cater to the evolving needs of the tourism market.
Mihad underscored the fact that the growth of Velana International Airport has been driven by the demands of the tourism industry. He noted that each major infrastructure project at the airport has been a direct response to the ever-increasing influx of international visitors. From higher passenger volumes to the changing needs of global travelers, Velana International Airport has continuously adapted, ensuring that the Maldives remains competitive on the world stage.
Mihad also addressed the challenge of balancing Velana International Airport’s revenue streams while maintaining competitive pricing for travelers. The airport generates revenue through both aeronautical activities (such as flight operations) and non-aeronautical services (like retail, duty-free shops, and food outlets). However, increasing airline fees could lead to higher ticket prices, potentially impacting tourism. He emphasized the need for innovative strategies to boost non-aeronautical revenues while keeping flight costs reasonable.
He discussed the unique operational differences at Velana International Airport compared to other global airports, given the Maldives’ unique geography. Upon arrival, many visitors—around 40%—take speedboats to resorts, while others transfer to seaplanes or domestic flights. The Maldives boasts the largest seaplane operation in the world, an essential element of its tourism infrastructure. One of the operational challenges Velana International Airport faces is that 65% of its traffic occurs during a six-hour window of daylight, as seaplanes do not operate at night. This compressed schedule drives up infrastructure costs and complicates operations, ultimately increasing expenses for airlines and tourists.
Mihad highlighted the importance of sustainable growth at Velana International Airport, ensuring that it aligns with broader tourism objectives. Expanding and diversifying routes is a key area of focus. While the Maldives has an open skies policy, allowing carriers from any destination to operate, Mihad expressed concerns about the dominance of Middle Eastern carriers, which now account for 35% of Velana International Airport’s traffic. He encouraged the industry to consider how this concentration of flights could affect ticket prices and accessibility.
He stressed the need for collaboration between the airport and the tourism sector. He pointed to the example of Malaysian Airlines, which successfully marketed the Maldives to Australian travelers after launching a route to the islands. Mihad advocated for more joint initiatives like this to help grow new routes and markets, benefiting both the airport and the broader tourism industry.
In closing, Mihad remarked that Velana International Airport’s role goes beyond being just an airport. “We are not running an airport,” he said. “We are running a hotel where passengers happen to come by plane.” This reflects Velana International Airport’s commitment to delivering exceptional service to visitors, aligning with the Maldives’ reputation as a world-class travel destination.
The GM Forum 2024, themed “The Evolving Luxury Landscape,” featured discussions on the future of luxury travel in the Maldives, exploring topics such as the mindset of modern luxury travelers, digital marketing, and sustainable practices. The forum included diverse panels and interactive sessions aimed at enhancing guest experiences and promoting the integration of local culture into luxury offerings.
