THE REPUBLIC OF MALDIVES

GENERAL ECONOMIC DATA

FISHERIES DATA

Commodity balance (1996):

Exchange rate (1995): US$ 1 = 11.772 Maldivian Rufiyaa

STRUCTURE AND CHARACTERISTICS OF THE INDUSTRY

Marine fisheries

Maldives is an archipelago of nearly 1 200 coral islands grouped into 19 widely dispersed atolls covering an area of nearly 90 000 km² in the centre of the Indian Ocean. The country’s Exclusive Economic Zone covers an area of nearly one million km². Marine resources is the country’s main natural endowment with economic activities concentrated on fishing and tourism. Currently fisheries account for 11% of GDP, 20% of employment and 74% of the country’s export commodities.

The total fishing fleet in 1995 consisted of 1 674 vessels, of which 1 407 motorised pole and line crafts (masdhoni) for tuna fishing in coastal waters, 5 sailing masdhoni, 48 mechanised vadhudhoni, 209 sailing vadhudhoni and 5 row boats used for trolling in reef waters.

The ‘dhoni’ which, in various versions makes up by far the bulk of the fleet, is a plank-built craft traditionally built with coconut wood; however, increasingly imported wood from Southeast Asia is being used. In 1995, motorised craft accounted for 97% of the fish catch.

Fisheries are seasonal; they are "dictated" mainly by the monsoons. In 1996, 63% of the catch consisted of skipjack and 12% of yellowfin. There is a considerable increase in the reef fish catch in response to the demand of overseas markets and tourists visiting the Maldives. In recent years, substantial fisheries have developed for tropical aquarium fish, grouper, bêche-de-mer and giant clam. Management measures, including a complete ban on export of giant clam, have been introduced to avoid overexploitation. Indications are that demand for high value fish will continue to increase in the future requiring additional management efforts to avoid excessive harvesting.

Inland fisheries and aquaculture

There are no inland fisheries in Maldives. Fishing operations take place in off-shore, coastal and reef waters. There are no aquaculture activities at present. However, as the geography of the country provides opportunities for aquaculture development, efforts are underway to experiment with the culture of seaweed, pearl, giant clam, spiny lobster, bêche-de-mer and groupers. The potential for using mangrove areas for crab culture is also being investigated.

State of the industry

Fish catches have increased dramatically in recent years exceeding 103 000 t in 1996. Several factors have contributed to this rise; the increasing number of mechanised and motorised boats, installation of fish aggregating devices which improved the efficiency of fishing activities, and improvements in infrastructure for collection and handling of fish catches which have facilitated fishermen’s work. A considerable growth of demand for fish both nationally and in export, mainly of canned tuna and exotic reef fish varieties in particular, have additionally provided an economic incentive for fishermen to increase fishing effort.

Production has increased in spite of a considerable drop in both the number of full-time fishermen and crafts.

Government involvement in the fisheries sector is considerable. Processing and export of frozen and canned tuna are controlled by the Maldives Industrial Fisheries Company (MIFCO) which also provides a collector vessel. Since 1990, Government has opened many venues for the private sector to process and export diversified fishery products. All fishing is undertaken by the private sector and its involvement in processing and export is increasing.

Economic role of the industry

Although tourism, during the past decade, has grown considerably, fisheries continue to provide an important source of income for about 20% of the population; it is estimated that about 22 000 individuals are involved in full-time fishing activities.

Fish trade

Historically, the fisheries sector was the major source of employment and foreign exchange earnings. The opening of export markets in South East Asia for higher value reef fish and non-fish marine species has further accelerated fisheries exports. In 1995, fisheries products accounted for almost 74% of the value of the Maldivian export. More than half of the total fish catch was exported; in fresh, frozen and canned form (47%), dried (34%) and in other forms (19%). The main importing countries include EU, Sri Lanka and Southeast Asian countries.

Utilization of the catch

Fish provides the principal source of animal protein for the population. Almost half of the catch is consumed locally. Traditionally, demand existed mainly for skipjack, an essential ingredient in the Maldivian diet. However, with the development of tourism and more access to Southeast Asian markets, species - other than tuna - are increasingly in demand.

DEVELOPMENT PROSPECTS

To date, of the pelagic species, Maldivian fishermen have exploited almost exclusively skipjack tuna. Considerable potential may exist for the expansion of pelagic fisheries to other tuna species, such as yellowfin, especially in deeper waters. Reef fish and demersal species also can sustain considerable increases in exploitation. However, at present exploitation is constrained by the local demand for such species and by lack of local infrastructure for storing and transporting fish.

Furthermore, the rapid development of tourism has created strong competition in the labour market; fishing have lost some of their attraction when compared to the salaries paid in the tourist industry.

RESEARCH

The Ministry of Fisheries and Agriculture is responsible for exploratory tuna fishing, investigation of reef fish resources, cataloguing of fishing gear, establishment of a tuna data base and analysis of statistics and socio-economic surveys.

With the assistance from several bilateral and multilateral donors, research activities are being focused on the assessment of tuna stocks, reef fish and other marine resources and on managing these resources in a sustainable manner.

AID

In the past, considerable bilateral and multilateral assistance was granted for fisheries development. At present several projects are operating in the country.

The bulk of foreign support is being directed towards the development of post-harvest sector. The Kuwait Fund has contributed to setting up tuna processing facilities, and the Asian Development Bank to improve cold storage facilities. Assistance has also been provided by Organization of Petroleum Exporting Countries (OPEC), World Bank and International Fund for Agricultural Development (IFAD).

The FAO Bay of Bengal Programme is assisting the Government in the exploratory fishing for tuna and reef fish, and is supporting the setting up a fisheries management system. The United Kingdom is providing support for the investigation of tuna stocks, research into deep-water coral mining and the rehabilitation of coral reefs and new possibilities in fish marketing.

Canada is assisting in the development of marine surveillance facilities and in coral reef research.