AG’s advice sought to seize 22 islands leased for resort development

In a significant move to address stalled resort development projects, Tourism Minister Ibrahim Faisal has sought the advice of Attorney General Ahmed Usham to cancel the agreements of 22 islands leased for resort development due to lack of progress.

During a parliamentary session today, Minister Faisal revealed that a total of 58 islands have been identified with minimal or no development progress. Some of these islands have remained idle for as long as 15, 20, and even 30 years. The Economic Council has prepared a comprehensive paper to engage with the entrepreneurs who have leased these islands, aiming to understand and address the obstacles hindering their development.

However, Faisal emphasized that for 22 of these islands, no development work has been carried out at all, prompting the need for legal advice from the Attorney General to proceed with the cancellation of the agreements. This step is seen as crucial to reclaiming these islands and potentially re-leasing them to more proactive developers.

In the past, the government has faced legal challenges and demands for compensation from lessees when attempting to cancel such agreements. To mitigate these issues, amendments to the Tourism Act have been proposed and are expected to be submitted to the People’s Majlis soon.

Minister Faisal’s initiative underscores the government’s commitment to ensuring that leased islands are developed in a timely manner, contributing to the Maldives’ tourism sector and overall economic growth.