Government of Maldives to terminate resort development conracts
The Maldives Ministry of Tourism, Arts & Culture has announced that it will terminate contract of 12 islands leased. Speaking at a press conference on 31 December 2009, Tourism Minister Dr Ahmed Ali Sawad said that the ministry was taking action because of the lack of progress in development of many islands.
Tourist Resort -
Most tourist stay in exclusive resort
Tourism Minister also mentioned that of the 64 islands leased for tourism development 12 islands have not even started development works. According to him discussions would be held next month on cancelling the agreements and seizing those islands.
He also said that although deadline for the opening had not reached there are many islands which have not begun the work while 23 islands had done some work.
Minister said that he is obtaining legal counsel on a course of action which the government can follow. Minister also highlighted that as a huge sum of money was received by the government as down payment, government has to make a position on the question of such funds as well.
The Minister floated the idea that those 12 islands would be leased to parties that are interested in going for joint venture companies with the government. He also said that before awarding the islands, a background check would also be made on the party to see if they actually has enough capital to develop resorts.
Many parties who were awarded islands have fall behind their development target dates that are specified on their contracts. As a result the government is loosing revenue as bed tax currently stands at US$8.00 per guest per night.
January 2010 / Source: Miadhu, Minivan News
» Back to main news page