Legal Counsel Sought to Cancel 22 Resort Development Agreements

The Maldives government is taking steps to terminate agreements for 22 islands allocated for resort development where no progress has been made. Tourism Minister Ibrahim Faisal revealed today that Attorney General Ahmed Usham has been consulted to provide legal advice on the termination process.

Lack of Development on 58 Islands

During a parliamentary session, Minister Faisal shared that 58 islands, designated for resort development, have yet to be utilized for tourism purposes. Some of these islands have remained untouched for over 15, 20, or even 30 years. This extended period of inactivity is becoming a significant concern, as these islands were initially allocated to boost the country’s thriving tourism sector.

Economic Council Engaging Island Recipients

To address the issue, the Economic Council has prepared a detailed report aimed at understanding the challenges and efforts of those who were allocated these islands. The government plans to engage with these recipients to determine the obstacles they are facing in moving forward with their development projects.

Legal Advice for Terminating 22 Resort Agreements

However, in cases where no work has been initiated at all, the government is taking firmer steps. Minister Faisal explained that the legal advice sought from the Attorney General’s office will help guide the termination of agreements for 22 islands. Once the legal counsel is received, the process of cancelling the contracts will begin.

Amendments to the Tourism Act

In the past, similar agreements were cancelled with minimal compensation paid to the developers. To address this issue, amendments to the Tourism Act have been proposed. Minister Faisal confirmed that these changes will soon be presented to parliament, ensuring that future cancellations are handled more efficiently, with fairer compensation for both parties involved.

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