Tourism Minister Ibrahim Faisal recently highlighted the government’s shift in focus towards completing existing unfinished resorts rather than allocating new islands for resort development. During a media conversation, Minister Faisal acknowledged the challenges faced by 63 incomplete island resorts, emphasizing the government’s commitment to addressing these issues. While prioritizing ongoing projects, he mentioned the government’s openness to proposals from capable companies interested in developing new resorts.
Addressing the hurdles in bringing these 63 islands into the tourism market, Minister Faisal discussed revisiting lease agreements. The government is compiling a list of interested parties for lease modifications and is arranging meetings with them, expressing optimism about making swift progress.
Minister Faisal identified the lack of a dedicated investment bank in the Maldives as a major obstacle to resort construction. He noted that building a four-star resort requires around USD 25 million, a sum current banking institutions in the Maldives struggle to finance, especially for newcomers in the tourism sector. This financial challenge has led to many projects stalling after initial investment and development phases.
Touching on the island acquisition process for resort development, Minister Faisal explained that disclosing the acquisition cost is common to attract investors. However, he observed that despite investor involvement, some projects face challenges and halt midway.
Discussions about unfinished resorts are collaborative, with a focus on finding practical solutions. Minister Faisal affirmed his commitment to amending lease agreements if necessary to facilitate progress.
In an effort to boost the tourism sector, the minister expressed intentions to attract investors from China, part of a broader strategy to revitalize the Maldivian tourism industry and ensure the successful completion of numerous pending resort projects across the nation’s islands.
