Banyan Tree Vabbinfaru in the North Male Atoll, the Maldives. Photo: Banyan Tree
Banyan Tree Vabbinfaru in the North Male Atoll, the Maldives. Photo: Banyan Tree
Banyan Tree Vabbinfaru in the North Male Atoll, the Maldives. Photo: Banyan Tree
Banyan Tree Vabbinfaru in the North Male Atoll, the Maldives. Photo: Banyan Tree

Three decades of preserving Maldivian paradise at Banyan Tree Vabbinfaru


Hayley Skirka
  • English
  • Arabic

In 1993, Ho Kwon Ping was on a trip to the Maldives. The former journalist was on a mission, having turned his hand to hospitality and transformed a disused bay in Thailand into the first Banyan Tree resort, he wanted the hotel brand’s second property to be in the Indian Ocean archipelago.

At a small island, 30 minutes from Male, KP (as he’s known to his friends) toured a forest-topped islet in the North Male Atoll. Home to a small guest house, there was not much else on the island, not least electricity or running water.

“Still, he knew that this was the one,” Mohamed Naeem, deputy general manager at Banyan Tree Vabbinfaru tells me as we sit on the terrace of Madi Hiyaa, the resort’s manta-shaped overwater restaurant, enjoying uninterrupted ocean views.

Naeem has been part of the resort since its inception. Born and brought up in the Maldives, the former teacher-turned-hotelier relocated to the tiny island before it officially became Banyan Tree. As one of the first international resorts to open in the Maldives, the Singaporean hotel brand brought a lot of changes to the industry across the Indian Ocean island nation.

“I remember once in the early days, I went to a meeting with the leadership team. I was the only Maldivian in the room. Not only that, but I was the only Asian in the room. I couldn’t quite believe the proposals these men were making,” recalls Naeem. “Workers were to get one month off after every three months of working and a flight home every few months, and more. I wrote it all down, but in my head, I was thinking this will never happen.”

But happen it did as Banyan Tree brought international hotelier standards to what was then a tourism industry very much in its infancy.

Hands-on conservation

Snorkelers take part in a Save the Reef campaign at Banyan Tree Vabbinfaru. Photo: Banyan Tree
Snorkelers take part in a Save the Reef campaign at Banyan Tree Vabbinfaru. Photo: Banyan Tree

Three decades on and more than a million visitors now flock annually to the Maldives. While this rapid tourism development has brought economic benefits to the archipelago, it has not come without cost.

Coastal areas and marine ecosystems face degradation, often due to waste from densely populated resort islands. At Banyan Tree Vabbinfaru, a commitment to preserving the natural environment is evident. As the first resort in the Maldives to establish an on-site marine laboratory, conservation and education have been core components of the story for many years.

“We’re doing all sorts of conservation with the guests. It is included in the stay price as it’s not something that Banyan Tree wants guests to have to pay extra for,” head marine biologist Nick tells me while I glue a piece of coral onto a concrete marine cookie. The activity is the newest conservation focused project to launch at the resort, aiming to let guests be part of the efforts to help resort the island’s surrounding corals.

Travellers are welcome to visit the newly launched purpose-built marine lab where a colourful classroom setup is adorned with accurate fish representations of the sea life found in the nearby ocean. Glowing fish tanks filled with planted corals line one side of the lab, which has an overhead gallery where visitors can partake in educational discussions and conservation lessons. A new coral spawning programme is under development, a pioneering method that could repopulate the hotel’s house reef in just a few years, much faster than using conventional conservation methods, explains Nick. Of course, more traditional conservation methods remain, and I get the chance to see some in action the next day while scuba diving.

About 15 metres below the surface of the Indian Ocean, surrounded by colourful parrot fish-tailed trigger fish, my dive buddy and I pass a metal cage-like structure covered in corals. These synthetic electric reefs emit low-level electric currents, which trigger a process that deposits calcium carbonate onto the structure, essentially providing a growth boost for the corals.

"When planted on these reefs, corals are not only safer from predators," explains Henry, the resort’s assistant marine biologist, "but they also grow significantly faster."

The Marine Lab at Banyan Tree Vabbinfaru. Photo: Banyan Tree
The Marine Lab at Banyan Tree Vabbinfaru. Photo: Banyan Tree

A small island and a big impact

Conservation efforts extend beyond the water at Banyan Tree Vabbinfaru. Guest rooms utilise refillable toiletry bottles and glass water bottles, eliminating single-use plastics.

As one of the region's pioneering holiday islands, Banyan Tree also balances its long-standing hospitality with updates. Villa renovations include modern amenities like USB charging ports, new artwork and upgraded balcony furniture. The resort maintains a rustic and natural atmosphere, intentionally avoiding overwater villas and constructing buildings around existing topiary.

"The owners made a choice to prioritise unobstructed ocean views and to preserve the natural environment wherever possible,” explains Naeem. This choice puts the natural beauty of the island first, although it does result in some unique villa layouts including irregular-shaped bathrooms and swimming pools located in the rear of the villas, far away from the million-dollar ocean views.

Walking around the sand-covered island takes all of six minutes – I time it as I go. While that is a drop in the ocean compared to many newer resorts in this popular holiday destination, these 48,000 square metres represent three decades of hospitality and a foundational approach to preserving nature alongside the Maldives modern tourism development.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Updated: April 17, 2025, 10:32 AM