The Government of Maldives has introduced a new regulatory framework enabling authorities to initiate the termination of agreements covering 161 islands and lagoons allocated for resort development, as part of efforts to resolve tourism projects that have remained incomplete for extended periods, in some cases for as long as 25 years.
Minister of Tourism and Civil Aviation Mohamed Ameen disclosed the figures during the Ahaa public forum, jointly organised by the President’s Office and Public Service Media, while addressing public concerns over prolonged delays in developing islands and lagoons leased for tourism purposes.
Minister Ameen said several tourism properties allocated for development had remained without meaningful progress for periods ranging from 10 and 12 years to 20 and even 25 years. He noted that the issue had accumulated over successive administrations without adequate measures being implemented to bring delayed projects to completion or return undeveloped properties for productive use.
Under resort development agreements, investors are required to complete construction and commence operations within stipulated periods. The prolonged inactivity of these projects has affected both the State and the wider public, as operational resorts contribute significantly to government revenue, employment, foreign exchange earnings, local supply chains and broader economic activity.
The Minister estimated that accumulated land rent associated with such properties had reached approximately USD 500 million to USD 600 million. He explained that repeated extensions granted to construction periods over the years had made it difficult to proceed with the termination of agreements despite continued delays.
To establish a clearer and more accountable framework, the Ministry of Tourism and Civil Aviation gazetted new regulations on 10 September covering extensions granted to unfinished tourism developments and the redevelopment of tourism properties that have ceased operations. The regulations also establish provisions relating to the deferment of rent payments and associated fines.
Minister Ameen said cases involving construction periods have been classified into four categories under the new framework, with specific procedures established for initiating the termination of agreements where applicable. The Government is expected to begin practical implementation of the measures shortly, reflecting the administration’s broader objective of ensuring that valuable tourism assets are developed within reasonable timeframes and contribute effectively to national economic growth.
The initiative could also create opportunities for long-delayed resort properties to be completed, restructured or made available for capable investors, potentially bringing additional high-quality tourism capacity into operation. New resort developments can generate employment opportunities for Maldivians, strengthen demand for domestic businesses and service providers, expand tourism-related infrastructure, and increase revenues collected through tourism taxes, land rent and other economic activities.
The measures come as the Maldives continues to strengthen its position as one of the world’s leading island tourism destinations. According to the latest statistics published by the Ministry of Tourism and Civil Aviation, 180 resorts are currently operating across the country, providing a combined capacity of more than 45,000 beds.
By addressing long-standing delays in resort development and strengthening accountability within tourism investment agreements, the Government aims to ensure that allocated islands and lagoons are utilised more efficiently while supporting sustainable investment, greater economic productivity and the continued expansion of the Maldives’ globally recognised tourism industry.
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