Malé, Maldives – Minister of Tourism Abdulla Mausoom stated on Monday that the contract between the government and Addu Investment Pvt Ltd is made in such a way that it incurs a loss of USD 68 million to the government.
Speaking at the Parliament sitting today, Minister Mausoom reiterated his previous statements repeating that the issues with Shangri-La Resort in Addu City will only be resolved by Maldives Tourism Act (Law No. 2/99).
Our only choice is to release its shares … but the size of the island poses a major issue.
The Government of Maldives currently holds 30 percent share in the resort which adds to over USD 80 million according to the formula in the current Tourism Act.
The Minister elaborated that as per the agreement with Addu Investment Pvt Ltd, the government must share in loans to finance loss, in addition to not earning any profit through the resort.
Shangri-La suspended its operations in Addu City in April 2020 with the onset of the pandemic in the Maldives and closed the resort indefinitely in August 2020.