President Ibrahim Mohamed Solih has signed two decrees designating Hankede in Addu City and Gaafaru lagoon in Kaafu Atoll for real estate tourism development.
The Maldives Tourism Act vests the president with the power to allocate land for the development of tourist resorts, integrated tourism development, tourism-related real-estate projects, tourist hotels and guesthouses, yacht marinas, and other tourism-related projects.
The act also dictates that the president is required to specify a 100% state-owned enterprise that will receive the lease for the land, in order to develop and operate an integrated tourist resort. As such, Hankede and Gaafaru lagoon have been leased to Maldives Fund Management Corporation (MFMC) for development.
The government will also be leasing four islands for real estate tourism to generate a revenue of USD 15 million in 2022. The four islands are to be reclaimed and leased to MFMC for resort development under the real estate tourism policy. The government has stated it intends to expand real estate tourism in the country to diversify the economy and increase the avenues of income to the state.
The government expects an additional USD 47 million in revenue from the newly proposed avenues of income for 2022.