Govt says policy is to sell stake in tourism joint ventures

The government's policy is to sell its stake in islands leased for resort development, tourism ministry has said.

Tourism regulations were amended late last year to allow the sale of 5-10% government stake in islands leased for resort development.

The change was made to give up the government's stake in Addu Shangri-La Resort.

Since then, the government has decided to sell its stake in three islands that have been leased for resort development.

Tourism minister Dr Abdulla Mausoom told Atoll Times that the government did not benefit from its stake in islands leased for tourism development under joint venture agreements. 

"Now, the government's idea is to sell the shares, so that the government can benefit from the deal," he said.

Mausoom said that in sale and purchase of leasehold rights of an island, if the buyer wants to buy the government's stake, the government will sell its shares after a valuation. He, however, pointed out that the finance ministry will decide on the share price. 

"It will be sold at market prices to the benefit of the state. That's why valuation is also being done," Mausoom said.

Finance minister Ibrahim Ameer did not immediately respond to a request for comment.