In a major crackdown on long-standing economic stagnation, the government has revealed that a staggering 161 islands and lagoons leased for resort development remain undeveloped, with some sites languishing in limbo for up to a quarter of a century.
The alarming figures were brought to light by Minister of Tourism and Civil Aviation Mohamed Ameen during the recent "Ahaa" public forum, jointly organised by the President’s Office and Public Service Media (PSM). Responding to mounting public frustration over stalled tourism projects, Minister Ameen did not mince words, pointing out that successive administrations have failed to take decisive action against developers who let leased properties sit idle.
As tourism serves as the lifeblood of the Maldivian economy, the economic toll has been severe. According to the Ministry, the continuous extension of construction periods and the deferral of land rents have caused accumulated state arrears to balloon to an estimated USD 500 to USD 600 million.
"Islands and lagoons were leased under agreements to be developed and opened within a specified timeframe," Minister Ameen explained, emphasising that the delays inflict direct financial harm on both the state and the public.
He noted that under previous administrations, legal loopholes and endless extensions tied the government's hands, preventing contract terminations and leaving properties stranded in distress.
To finally break this decades-long cycle, the Ministry gazetted a robust new framework on 10 September—"Regulation on Granting Extensions for the Development of Unfinished Tourism Projects and Properties Closed for Redevelopment, and the Deferral of Rent and Fines."
The newly established regulation categorises delayed projects into four distinct pathways, setting strict criteria for compliance and outlining clear mechanisms for contract termination. Minister Ameen confirmed that practical enforcement of the framework will roll out this week, hailing the move as a pivotal decision by the administration to safeguard public interest.
While the government moves to reclaim and revitalise stranded state assets, official statistics show that the nation's active tourism sector remains robust, with 180 operational resorts boasting an aggregate capacity of over 45,000 beds.