The Ministry of Tourism has announced an invitation for proposals to develop tourist facilities on uninhabited islands through a cross-subsidisation scheme. This initiative aims to bolster tourism while aligning with the government’s broader economic and social policies.
Under the cross-subsidisation model, investors are granted a land plot, island, or lagoon in exchange for financing projects that support governmental objectives. These leased areas require a formal agreement, with provisions allowing the government to repossess the land if the lessee fails to meet project obligations. Project expenses incurred by the investor are deducted from the land rent, encouraging significant investments. The minimum investment threshold for such projects is established annually by Presidential decree.
The Ministry has identified Dhigufaru and Dhekenenfaru in Noonu Atoll, along with six other islands, for tourism development under this scheme. Previously, six islands were allocated for tourism purposes as cross-subsidies under former President Ibrahim Mohamed Solih’s administration, although this list may change in the future. Allocating islands for cross-subsidisation has been a policy of previous governments, reflecting its importance in national development strategies.
The Ministry has stated that proposals can now be submitted under the established regulations, with application forms available on the Ministry’s website. Interested parties are encouraged to take advantage of this opportunity to contribute to the growth of the Maldives’ tourism sector while benefiting from the cross-subsidisation framework.
This initiative is expected to attract substantial investments, enhance the country’s tourism infrastructure, and promote sustainable economic development.
