88 new resort developments on hold; MVR 26b lost annually
As a result, the government has not received revenue from these islands and jobs have not been created.
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Development works of 88 islands leased for tourism have come to a halt, resulting in a loss of $1.7 billion (MVR 26.2 billion) annually, the Finance Ministry said in its fiscal statement for 2024-2026.
The ministry's report outlines major changes in budget implementation.
The report noted that 88 islands allocated for tourism remain undeveloped and this has cost the economy in opportunity cost.
As a result, the government has not received revenue from these islands and jobs have not been created. The report also noted that the benefits of resorts to other parts of the economy have also been hampered. They include:
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21,000 beds can be made available for tourism from the 88 islands
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If these islands are brought into operation, the economy will receive $1.7 billion annually directly and indirectly
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More than 16,000 jobs will be created
The report said the government is taking steps to promote and expand tourism and increase its benefits to the economy. Accordingly:
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A situational preliminary assessment of these islands has been conducted with the International Finance Corporation
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Based on the assessment, the unfinished islands will be completed and the government will identify the areas where it can provide assistance
