Resource limitations

This major category relates largely to the concerns and hindrances in obtaining the appropriate resources as perceived by participants. More specifically, the category describes the technological infrastructure and human capital needed to maximise the potential of ICT. These low level categories emerged from the open codes during the comparative analysis process. The open codes were created from the data relating to scarce resources. The codes are listed in Table 15. (The open codes are italicised in the text for easy reference in subsequent discussions.)

Table 15: Components of category Resource limitations

Major

human capital Lack of trained personnel, educational level, basic computer expansion and enhancement of technological infrastructure. Technological development in the industry is inevitable. It has become imperative that a variety of good quality, high speed telecommunication services are provided across the Maldives.

The increasing demand for a stable, perpetually improving technological infrastructure in the Maldives is augmented by the expansion and change in the direction of tourism.

Describing such a demand, one of the telecommunication service providers noted that:

Nearly all the new resorts that are coming up are five star plus …, because they are five star plus they want, what to say, all technological activities to be present.

124 Another interviewee who emphasised the need backs this perception;

To improve the existing technology, to improve the one we are using to better technology, to provide an easier, faster service. For that, we have got about 3 or 4 projects for the next 6 months.

It seems service providers in the Maldives recognize that to gain competitiveness in the tourism industry, sustainable technological infrastructure developments are essential.

Such intentions directly relate to the wishes of tourism sector organizations, who noted that telecommunication liberalisation in 2002 has resulted in healthy competition between service providers (opinion of service providers). Despite rapid technological development, a number of interviewees noted that the issue of poor communication coverage (mobile/Internet) within the atolls of the Maldives is still unresolved (network accessibility). For example, one of the safari vessel operators confirmed:

Even now the problem we face is all of a sudden we cannot hear what we are talking….

I would say still our network is not good.

It was unanimously agreed by the interviewees that the geography of the Maldives poses major challenges to providing technological infrastructure. In comparison to other countries, the Maldives needs to take bandwidth across the sea while simultaneously assuring quality conformance (network quality/speed). It is difficult for the Maldives to obtain the required bandwidth. According to a telecommunications service provider in the country, the options are either to install submarine cables (submarine fibre optic communications cables laid by special cable-laying ships) or to use microwave radio links (a beam of radio waves in a microwave frequency ideally suited to transmit audio, video, or data between two locations). The submarine cable is not feasible, as it is too expensive to cover the entire country. The following quotes from two interviewees among technical service providers illustrate this issue:

For example microwave - they may say we also use the microwave and it is not that expensive, if we look at that, the only difference is that, they [foreign technical experts] are talking about mountain to mountain communications, which is 100s of kilometres. We have our islands on flat beds; if you look at the earth curvature, the maximum distance that could be carried is 50 kilometres. If that is the case multiple radios has to come in.

For example IP TV, if we are to give the service in Male’, we can have one head end equipment, billing and streaming in one head end, and distribute the set-top-box. …in

125 a city hotel this is the case. .. Most of the time the city hotel owners have to invest on to set-top-box and for the TV heads, but in this environment, because we are not able to get the bandwidth, they have to invest in the stream servers, encoders, plus on all the additional stuff that comes along with that.

Furthermore, the sector experienced major influences from international competitors.

Their existence has changed the institutional conditions by affecting the quality of services available. Such influences are evident by the statements made by an Internet service provider who noted:

Now that there are international chains coming in we need to give the service levels.

Define our service level…that is the biggest reason for the high price.

Although costly, high quality, Internet services are necessary to manage time-intensive applications, such demand requires spatial expansion of the technological infrastructure in the country. This underlies the service providers’ rationale for the high cost of telecommunication services (technological infrastructure costs). Furthermore, high cost is exacerbated by the Maldives’ vulnerability (a low level category to be described under Local conditions).

4.2.1.2 Human capital

In addition to technological infrastructure, one of the critical resources in the Maldives is human capital. Many of the organizations are challenged by inadequate numbers of skilled personnel (lack of trained personnel).

A large portion of the work force is school leavers, who have completed basic schooling - the largest job-seeking population in the country (MPND, 2008) (educational level). It was a common understanding among the interviewees that the majority of school leavers were only acquainted with basic computer skills. For example, one of the IT managers among service providers noted:

on average all new comers [school leavers] know basic computing.

However, lack of awareness or expertise about the industry was often attributed to a lack of industry related skills required. Referring to the local workforce required for the tourism industry, one of the managers of an international chain resort stated:

There is definitely lack of awareness or expertise in the industry.

126 Additionally, interviewees noted the quality and content of education is questionable with respect to the tourism industry. Many of the interviewees expressed that this is the case even among new employees who had completed basic schooling. One of the managers of an international chain resort noted:

they don’t know what the job is all about.

Moreover, current training opportunities were perceived as insufficient. One of the IT managers of a local chain resort noted:

Whatever it is new student coming out of school requires certain training for a job.

There is no training centre for jobs.

As interviewees pointed out, the situation had worsened for organizations which sought to employ locals; there are not enough trained locals. Various interviewees emphasised the growing demand for trained personnel, making comments such as:

The most difficult task is to get good staff (Resort manager of an international chain).

and

It is hard to get a trained Maldivian (resort Manager of a local chain)

Subsequently, the majority of the organizations were engaged in on-the-job training as an alternative to securing adequately skilled staff. The approaches to this varied between organizations. For instance, one of the IT managers of a locally managed resort reported:

The department heads trained them.

Whereas a manager of an international resort chain explained:

We are also running this apprenticeship programme; I think it’s going into its eighth year.

Various interviewees noted that difficulties in finding trained personnel were exacerbated by locals being reluctant to work in menial jobs. For example:

Maldivians don’t want to start from the bottom and go to the top (Technical service provider).

And:

They don’t want to be categorised as labourers and things like that (interviewee among government authorities).

As a result, locals were only sporadically engaged in menial work such as clerical work.

127 Consequently, financial resources were directed to foreign employment. Fifty percent of the total workforce in the tourism industry were expatriate workers (MPND, 2008). This phenomenon of mounting foreign employment has caused anxiety about lack of opportunities for local employment. One of the industry association members confirmed:

tourism industry come into a very severe criticism on a daily basis for not hiring Maldivians, for not giving them the facilities what we accord ah! foreign workers, expatriate workers.

Employment of expatriate labour seems more convenient (discussed under social cultural influences) for resort owners, even though the total costs associated with expatriate labour seem to be slightly more compared to those of local labour.

Some interviewees argued that if locals were offered the same remuneration and benefits as foreigners, they would take up jobs in the industry. The manager of a Safari vessel explained:

we give his salary, we give him food, we give him accommodation, we settle his visas and also provide medical services when he is sick. After that one year, according to the contract we have to send him [away] by giving him ticket. This is what the services we do for foreigners. If we do these things even to Maldivians, they will stay [be willing to work in the tourism sector].

While the logic of this argument seems irrefutable, the inconvenience of dealing with local employees seems to override the financial burden incurred by foreign labour.

However, some sector organizations expressed a willingness to employ local people:

If we can get local people we don’t need to get foreigners (Manager of an international chain resort).

Despite such sentiments, there seems to be unintended rejection of local employment.

This makes the expenditure/investment on human resources less effective for the economy (Investment in human capital).Describing these predicaments, one of the heads of the industry association advocated:

We can employ more Maldivians; we feel better, they feel better. We feel that we are doing something for the community and for the country’s economy and to the livelihoods in the islands.

128 4.2.2 Summary of Resource limitations

Irrespective of the type of organization, the majority of the interviewees felt that limitations in technological infrastructure and human capital are amongst critical issues inhibiting effective ICT use. Certainly, the literature on ICT and developing countries substantiates this view; although technological infrastructure and human capital are important requirements in developing countries, they remain scarce as resources. According to Mansell & Wehn (1998), there are two keys to any country’s ability to exploit the development potential of ICT. The first is the availability of a network infrastructure, which is essential for the provision of information content. The second is the capacity to create, manage, and utilise infrastructure in ways consistent with the needs of the local environment (See also Nelson & Pack, 1999; Sambamurthy, Bharadwaj, & Grover, 2003).

This research has found the demand for robust technological infrastructure across the country is aggravated by the demand from tourism sector activities, irrespective of the existing high costs/tariffs of such services. However, the demand for nationwide coverage of technological infrastructure is somewhat limited. Within the tourism sector, it is generally the small businesses engaged in mobile tourism activities, such as cruising, that need nationwide coverage. Although these businesses contribute about 10% of the country’s tourism bed capacity, they do not amount to a sufficient number to meet economies of scale in building such high quality infrastructure nationwide.

Moreover, limitations associated with being a SIDS affect the economic feasibility of implementing high quality, nationwide technological infrastructure coverage.

The findings showed there are limitations in meeting the demands for employment opportunities. In its attempt to seek employees with the knowledge, skills and capabilities required for the industry, the tourism sector was challenged by the limited population of the Maldives. The largest job-seeking population group had rudimentary knowledge of ICT, but this was inadequate to meet the tourism sector’s requirements.

Training opportunities available in the country were insufficient. Furthermore, lack of long-term strategies in the approach to employment, coupled with the seemingly

129 unintended rejection of local employees, made the expenditure on human resources uneconomical.