The government has decided to release its stake in Shangri-La Villingili Resort and Spa, Tourism minister Dr. Abdulla Mausoom said. The resort which opened in Addu atoll in 2009, has been closed due to various issues.
He made the announcement in response to a question by a member of Parliament today.
The minister said the government has decided to release its stake in the resort and has informed Addu Investment Pvt Ltd, which owns the Shangri-La Resort. He said the matter would be settled once a response is received.
The government owns 30 percent of Shangri-La. Addu Investment Pvt owns the remaining stake. Shangri-La Resort was developed and opened in Addu atoll Villingili in collaboration with Shangri-La, one of the largest hotel companies in Hong Kong.
"The government has done the best it can. It has reduced the rent by a great deal. Discussions with Addu City MP's and council members are underway to give up the government's share."
Mausoom has not yet disclosed the details of the states agreement to release stakes in Shangri-La.
However, President Ibrahim Mohamed Solih said in Addu City last month that the government would have to pay USD 70 million if it released its stakes in the resort.
"The company has been running at a loss in the past. When you look at the government's share, it is in the negative. If we release the stakes, we have to pay USD 70 million. The company's financial statements have been submitted to the government," President Solih said.
The President said the only solution now is to cut the company’s losses and leave Shangri-La.
Mausoom said he had been hoping for the opening of Shangri-La for the past two years. He said his biggest hope is that the Shangri-La issue will be resolved and the resort will be opened this year.
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