The Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib stated today that state revenue via TGST will be 8 times higher than the TGST generated usually from lagoons leased for resort development. 

While attending the Maldives Accounting Forum as a Guest Speaker, the minister said the Rasmale' project, with it being the government's most important project, will generate USD 340 million (MVR 5.2 billion) in TGST for the state within a year, which is about USD 680,000 per year per hectare. 

The plots that will be leased and buildings sold from Rasmale' are being done under a leasehold basis for a 99-year period in line with Maldivian laws.

Under the project, 8,800 properties on 500 hectares of land in the Rasmale' region will be established.

According to Minister Muththalib, the state will receive revenue between an estimated USD 75 million and USD 316 million from each resort for 99 years under the Maldives Tourism Act. However, he said under the Rasmale' model, the state would receive around USD 3.1 billion in 10 years.

The minister went on to say that two types of business opportunities will be presented in Rasmale'. He said that cleaning and maintenance efforts, property management, food businesses, and retail and restaurant businesses will get opportunities as well. The other type of opportunity is businesses in the financial and professional services, accounting, digital, marine, health and education industries, said the minister.

The minister continued, stating even with a project such as Rasmale', tourism businesses being developed under the "one island, one resort" concept in Maldives will be given the opportunity to run as such, and that those businesses will be protected.

"The one island, one resort concept is the foundation of Maldivian tourism. The concept has elevated Maldives' value. Because of this, those businesses will be protected," as per the minister.

Minister Muththalib said that because of the real estate business, resort tourism will not come to a halt. Rasmale' is an opportunity for one island, one resorts and for tourism diversification in Maldives, commented the minister.

The legal agreement where 500 hectares of land from Rasmale', where Fushidhiggaru Falhu is being reclaimed and developed, was signed with UAE's Eagle Hills on 21st September. A water front and marina project will be developed there. The government has said that 5,000 housing units (worth around USD 500 million or MVR 7.7 billion) will be given in advance to the state even before practical work on the project begins, under the agreement made between the government and Eagle Hills.