The Minister of Tourism, Ibrahim Faisal, is taking decisive action to address the long-standing issue of stalled resort development projects. His recent visit to Maarendhoo island in Gaafu Alif Atoll highlights the government’s commitment to resolving these projects that have been hindering revenue generation for the nation.
Minister Faisal emphasized that a dedicated committee has been established specifically to expedite the development of islands allocated for resort construction. He plans to engage with the stakeholders to whom these islands have been allocated in order to identify solutions and fast-track progress.
The Minister’s visit to Maarendhoo, whose development began in 2016 but halted in 2019, highlighted the impact of such delays. However, his assessment indicates potential, stating that the project could reach completion within two years with focused effort.
Financial Impact of Stalled Developments
The Ministry of Finance estimates an annual loss of USD 1.7 billion (MVR 26 billion) due to stalled tourism development projects. The majority of these stalled projects are concentrated in Kaafu Atoll and Gaafu Alif Atoll.
Government Targets Completion of Key Projects
The government has set an ambitious goal to complete and introduce 25 out of 63 stalled projects to the tourism market within the next five years. Minister Faisal notes that a significant barrier is a lack of funding, and the Economic Council is working to identify issues and provide solutions for developers.
Implications for the Tourism Sector
The revitalization of unfinished resort projects offers a substantial opportunity for the Maldivian tourism sector to increase capacity, meet growing demand, and bolster economic growth. The government’s proactive approach signals a positive shift for investors and stakeholders in the tourism industry.
