The Maldives Ministry of Tourism has cited a lack of interest by potential investors for the small number of bid proposals that were submitted for two proposed new resort islands.
Bidding closed on 3 September for resorts on the two islands of Haa Alif atoll Kelaa and Laamu atoll Gadhoo, with only two firms submitting bids for Kelaa, and none submitting bids for Gadhoo.
The ministry says that financing difficulties are the reason for the lack of proposals. With the rise of construction costs, investors of existing projects are going back to their funding sources for additional monies. It was also noted that none of the 64 resort properties currently under construction will be completed on schedule.
On top of the financing issue, there has also been a decline in tourist numbers, which were down by 6.6 per cent for July of this year, as compared with July of 2007. This is the largest drop that the Maldives has experienced since the months following the tsunami of 2004.
“There has been a decrease in the number of bid proposals,” noted the executive director of the Tourism Ministry, Mohamed Waheed. “Developers are saying it is difficult to get investments in this sector…All current projects are delayed.”
In the last two tenders received by the ministry, both submissions were for the development of Kelaa, but not for Gadhoo, even though three bid packets had been purchased.
Mahmoud Shaugee, the tourism minister who resigned his post in July, commented that the “lack of investor interest… [is] associated with the economy and number of projects under way.”
Source: www.asap.co.uk
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