Tourism Minister Ibrahim Faisal on Friday emphasised the need to reduce taxes and tourism fees to support the development of tourism in areas where the industry is still emerging. He shared these remarks at the launch of Addu City’s tourism brand, an initiative aimed at boosting tourism in the southern region.
Minister Faisal highlighted that the primary challenge in expanding the tourism sector into lesser-developed areas is transportation infrastructure. He noted that implementing reduced tax rates, land rent, and acquisition costs could be essential steps in addressing this issue.
“There is a challenge in imposing the same taxes in areas where tourism is still developing as in well-established tourism zones,” he said, urging for adjustments in fiscal policies to accommodate these regions.
The Minister also pointed out the lack of available funds for investments in these emerging areas. To counter this, banks and financial institutions are working on improving access to financial resources for tourism development.
Discussing ongoing projects, Faisal mentioned Kasa Holdings, a shareholder in the company managing Addu International Airport, and its interest in undertaking tourism projects in the city. The Ministry of Tourism is collaborating with the company to advance these efforts.
“There are around 1,100 beds available in Addu. But the key question is whether we will develop tourism in Addu solely by increasing the number of beds or by enhancing connectivity and promoting the region globally,” the Minister stated.
Faisal announced plans to host a tourism symposium in Addu next year, targeting tour operators, airlines, and booking platforms from India and China. The aim is to establish new business links and promote Addu as a tourism destination. The event is expected to take place in the first or second quarter of 2025.
He expressed that Addu International Airport would be fully utilised if the region could add between 4,000 to 6,000 beds in the south within the next five to seven years. Faisal called on residents of Addu, Gaafu Alif Atoll, and Gaafu Dhaalu Atoll to collaborate in these efforts.
Referring to the reopening of Shangri-La’s Villingili Resort in Addu, Faisal provided updates on the ongoing negotiations. He held meetings with the company’s representatives in the Maldives, alongside Addu’s parliament members. Virtual meetings have also been conducted with Shangri-La’s management, and Faisal is planning further discussions in Hong Kong.
“We are working to bring Shangri-La back into operation, but it will require several months of renovation due to its prolonged closure,” he said. Faisal noted that the launch of projects like Hankede, Asseri Tourism, and those led by Kasa Holdings could encourage the reopening of Shangri-La.
To support these developments, Faisal proposed setting aside MVR 200 million or MVR 100 million annually as a soft-interest loan for tourism projects. He emphasised that improvements in the transportation system and enhanced financial support could drive the tourism sector in the Maldives to new levels in the coming 15 to 20 years.
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