Minister of Economic Development, Transport and Trade Mohamed Saeed stated the assets brought into the tourism industry over the last 54 years and the Eagle Hills' Rasmale' project will be at the same level, and the project will see Maldives become a developed country by 2040.
While speaking last night on the "Ahaa" forum, Minister Saeed said that Maldives' economy can only be diversified in ways that are friendly to Maldives' characteristics and that the major Eagle Hills project will move forward on that basis.
"The Eagle Hills project alone will see an increase of 1 million tourists. The airport was developed so that 4 to 5 million arrivals can be achieved in the near-term," said Saeed.
Moving forward with the current tourism development basis will not see Maldives become a developed country by 2040 and that major projects that make ends meet, increase revenue and that will develop the country need to come to Maldives, Minister Saeed said.
While there are multiple ongoing real estate projects in Maldives, being dependent on one industry to develop a country is very risky, said Saeed. He continued by stating that while Maldives' tourism industry is in its 54th year Maldives has 170 resorts and that direct economic revenue from the industry is USD 1.7 billion. He also said that the entire economy heavily revolves around the tourism industry.
"Nothing else has been done that can bring a high economic impact to Maldives. The Tourism Asset Value is not that high an investment when looking at other countries. Even so, looking at our size, it is a very big investment," said the minister.
He went on to say that the 99-year lease began in 2013 up until 2018, with around 54 resorts in Maldives being leased for 99 years and that it is not something new.
"Yameen's government at the time leased 30 percent of a USD 1 billion investment project after dredging an area on a freehold basis. The then-President said many things to try and justify it," said Minister Saeed.
According to the minister, the government that came after amended the act where Maldivian islands can be leased for 99 years. He said that the characteristic of Maldives' economy is to generate revenue by developing islands separately or resorts, and looking at the revenue generated by Maldives and expenditure, Maldives cannot compete with neighboring countries without moving swiftly. He also said that a project such as Eagle Hills is required to settle Maldives' expenses.
Maldives signed a commercial terms agreement with Eagle Hills late last month for a major project in Rasmale' named the "Maldives Waterfront and Marina". While the government has decided to hand over a 500 hectare plot to the company, some political leaders in Maldives have expressed concerns about the agreement.
One of the most famous companies in the United Arab Emirates (UAE), the project from Eagle Hills has a cost of USD 20 billion.
Regarding the Eagle Hills project, Saeed said that comments from opposition parties is meant a political means to spread fear and that if the project is successful, it will cast a shadow on the opposition's political lives.
