Minister of Tourism Dr. Abdulla Mausoom has revealed the resort development contracts signed for 75 islands have been amended to allow the ministry to terminate the contracts if the resort can be developed within 3 years.
Speaking at the Parliament of the Maldives, Tourism Minister Mausoom said previous contracts signed to lease islands for resort development forced the government to take the responsibility for delays in resort development. The minister said amendments have been brought to resort development contracts signed for 75 islands, such that the tourism ministry can terminate the contract if the resort is not developed within 3 years.
Speaking further, the tourism minister noted resorts are generally developed within a three-year timeframe, which can be reduced to even one and a half year if the project is fast-tracked. The minister said if the project is not fully mobilised within one and a half year after signing the contract, the ministry would consider that the project can no longer be completed within 3 years. Therefore, he said the ministry will be able to terminate the contract in such circumstances.
The tourism ministry had also recently revised its policy on granting contract extensions to resort developers. As per the amendments brought to the lease regulations of the tourism ministry, a contract can now only be extended to a maximum of three years after which the lease document will automatically become void.