Tourism ministry considering facilitating ways for Maldivians to build resorts to keep foreign currency from flowing out

Male, September 8 (HNS) – Minister of Tourism Hassan Sabir said that his ministry is considering providing ways for Maldivians to build resorts to keep foreign currency from flowing out of the country. Sabir said that while more than US$150 million was spent on building the 14 resorts that were developed recently, a large proportion of that money flowed out of the country. He said that even if 30 percent of that cost were considered as labour cost, about US$50 million would have flowed out. He said that this is a matter of serious concern. Sabir said that while the ministry invites bids for the resorts under the second phase of the Second Tourism Masterplan, some things would be amended to address this issue. He said that one reason such a huge amount is spent on foreign labour and services is because the term given for the development of the resort is too short. He said that currently only one year's duration is given to develop the resort and this means that the resort has to be developed with any means within that period. The tourism minister said that the ministry is considering giving a longer period to develop the resort and to provide more opportunities for Maldivian construction firms. Sabir said that only two resorts – Hudhufushi and Addu atoll Villingili – remain unopened among the islands that were to be developed under the first phase of the Second Tourism Masterplan. He said that 4,000 beds would be added in the areas to where tourism is to be introduced under the second phase. He said that instead of increasing the bed capacity by 4,000 at once, the ministry would try to increase the bed capacity by 1,000 each year till the target is achieved. After Hudhufushi and Villingili is opened the bed capacity of the tourism industry will reach 16,000. The target bed capacity of the Second Tourism Masterplan is 20,000 by the end of 2005.