Minister of Tourism Announces Major Changes to be Brought to the Bidding Process of New Resorts

In the month of December last year, the Ministry of Tourism opened 3 islands and 1 slot of land from 4 different atolls up for interested parties to develop tourism facilities. However, only 1 investor had submitted a bid for 1 island by the time the announcement was due.  

Speaking to public media about the growing demand for new investment in the country, Minister of Tourism, Dr. Abdulla Mausoom mentioned that even though a high number of new investors explore the possibility of collaborating on new projects in the destination, they are faced with various challenges in the bidding process.  

Currently, investors are to submit a prime rate based on the location of the island along with an additional rate which is based off the loan rate of the basic lease. Minister stated that these components are under review and a final cost based on the market value will be adjusted as the base lease execution cost. When implemented, changes will be brought to the minimum cost of bid in the market. Therefore, the challenges investors face as of now will minimize as well.  

Minister Mausoom also commented on the fact that given the current COVID19 situation and travel restrictions, new investors are unable to visit the site for inspection before they submit their bids. Nevertheless, as vaccination programs roll out worldwide, travel bans are expected to ease in the near future, allowing more and more investors to visit the destination.  

The Ministry of Tourism has planned to unveil quite a number of new islands open for the development of tourist facilities across the archipelago this year. As Minister Mausoom said, 2021 will be the year of Tourism Investment for the Maldives.