Govt establishes company to distribute resort profits to Maldivian citizens

President Dr Mohamed Muizzu has established a state-owned company to oversee the development of tourist resorts under a government initiative aimed at distributing resort profits to all Maldivian citizens.

According to the President's Office, the company, named Dhivehinge Resort Hissa Corporation (DRHC), was established on Monday as a wholly government-owned enterprise.

The corporation forms part of the administration's plan to develop at least 10 tourist resorts through state-owned companies over the next three years and distribute profits generated by those properties directly to Maldivian citizens in foreign currency.

President Muizzu announced the initiative during his address at the opening of Parliament earlier this year, stating that the Cabinet had approved the development of the resorts and the distribution of their profits into the accounts of all Maldivian citizens.

The President's Office said DRHC had been established to develop and operate resorts and other tourism facilities that meet international standards, with a focus on environmental protection and renewable energy.

The corporation will also seek to create employment and technical training opportunities for Maldivians while increasing foreign currency earnings for the economy.

Another objective is to work with domestic and international investors to develop a tourism business environment that supports long-term growth and competitiveness.

The establishment of DRHC follows amendments to tourism legislation passed in December last year, allowing islands, land and lagoons to be leased to state-owned companies for the development of tourist resorts and integrated tourist resorts.

The amendments were introduced to facilitate the participation of government-owned companies in tourism development.

Following the legislative changes, President Muizzu said the objective was to ensure that profits from resorts developed under the initiative would be deposited into the accounts of every Maldivian citizen.

The government has not yet announced the locations of the proposed resorts, the expected investment required or the amount of profit that individual citizens could receive under the scheme.