Tourism Sector was destroyed by the previous government - MPs

During the debate on the amendment to the tourism act of Maldives, MPs has said that it is the short-sighted policy of the previous government to raise the resort rent for 1.5 year in advance from the resort owner that jeopardized the Maldives tourism sector within the past 5 years. MPs also said that government’s raised money was not spent on tourism sector, but rather on the budget shortfalls of the government.

Zahir Adam, MP for G. Dh. Gadhdhoo, previously a DRP member but now an independent forcefully questioned the audience on who has actually jeopardized the tourism sector, in response DRP MPs claims that the current bill being debated would destroy the tourism sector. Zahir also said that even the previous sessions of the parliament has requested the previous government to refrain from such short-sighted policies.

Zahir also requested that the rent procedures be regulated by the provincial authorities and not by the Ministry. Many MPs who spoke during yesterday’s session said that they opposed giving the authority to the tourism ministry to extend the lease as per a regulation.

During yesterday’s session, MP for G. A. Gemanafushi, Ilhaam Ahmed said that he vehemently opposed the idea of giving resorts to 50 years and said that resorts are being owned by the very same people.

MPs also said that because the resorts are being offered for the highest bidders, after spending for the high rents, developers does not have adequate money to develop the resorts. They said that it would be better if the rents could be placed at a reasonable level, so that the developers would have more money to develop the resorts. MPs also said that it is a duty of the government and the parliament to monitor the developments in the resorts, as the delay in the developments would delay money and opportunities for the Maldives.

MPs also said that the procedures and consequences if resort owners fail to realize the social responsibilities must be articulated in the bill.

Ahmed Shiyaam, DRP’s former deputy leader but now an independent MP said that he support the bill and said that it will improve investor confidence. Shiyaam, a prominent tourism businessman, also responded to some MPs claim that resort owners has failed in their social responsibilities, by saying that Maldives development is largely the result of tourism and said that tourism businessmen does not publicly provide assistance to social causes.

Yesterday’s meeting also accepted the bill on household rents by 45 MPs voting in favour, 14 against with 5 abstentions. The bill was submitted by independent MP of H. Dh. Kulhudhuffushi South, Mohamed Nasheed.