Kaashidhoo MP Abdulla Jabir on Tuesday submitted a resolution to the parliament calling for the government to ensure guesthouse sovereignty for businesses.
The first reading of the resolution proposed on Tuesday declared that foreign investors have overtaken control of the tourism sector including the guesthouse industry, resulting in low profit for local businesses and fears that foreign investors would take complete control.
According to the resolution, the status quo was a result of the inadequate financing of development projects and the challenges faced by guesthouse business-owners in attaining the few financial recourses available at banks.
Moreover, it is stated in the resolution that a system should be implemented under the administration's guesthouse policy to give loans to small-mid range businesses, and to introduce regulations that would ease accessibility to investments required to further develop guesthouses.
Jabir's resolution stated that its purpose is to obligate the government to ensure that locals do not lose control over the guesthouse industry. The objective can be achieved by mandating the state to facilitate an easier financing system for guesthouse investors by providing sovereign guarantees.
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