Construction stalled on 88 islands leased for resort development

Oct 18, 2023, 12:58 PM
Lhaviyani Hudhufushi, unfinished after 22 years. -- Photo: Google Earth

Lhaviyani Hudhufushi, unfinished after 22 years. -- Photo: Google Earth

Construction remains stalled on 88 islands leased for tourism in the Maldives, the Finance Ministry has said.

According to statistics in the 'Fiscal Risk Statement 2023' published by the ministry, a total of 256 islands have been leased for resort development in the country, of which 168 islands are operated as resorts.

Development of the remaining 88 islands is not going ahead in line with the lease agreements, the statement noted.

Most of the islands with stalled construction are in Kaafu atoll with 29 islands leased for tourism that are not operational.

The failure to develop such a large number of islands is one reason for the lack of benefits from the islands to the country's economy as well as for the decline in revenue to the tourism sector.

Some 21,000 beds could be added for tourism from the 88 islands where work has stopped, the Finance Ministry estimated.

If the resorts are brought into operation, the Maldivian economy could directly and indirectly earn an estimated USD 1.7 billion.

The Fiscal Risk Statement also noted that more than 16,000 jobs could be created if the stalled resort islands come into operation.

A situational preliminary assessment of the undeveloped islands has been conducted in collaboration with the International Finance Corporation, the Finance Ministry said.

Work is ongoing with reference to the assessment to determine areas where government assistance could be provided in order to restart the stalled development.

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