Gov to pay MVR 1 billion to Shangri-La resort, plans to let go of shares

Shangri-La Villingili Resort & Spa has not been reopened as the government has been unable to let go of their shares, Minister of Tourism Dr. Abdulla Mausoom has revealed in the parliament on Monday.

He had additionally said that once the process was over, the resort will be opened later on in the year.

These statements were made while answering a question addressed to him by MP of Addu Meedhoo constituency, Rozaina Adam, regarding the closure of Shangri-La Resort in Addu due to Covid-19.

Dr. Mausoom said that since the government has a 30 percent stake in Shangri-La Resort, the government must also take part in the losses incurred by the resort under the agreement with Addu Investment Pvt Ltd.

He said that the government has to participate in the loans provided to mitigate the financial losses incurred by the resort. As such they have to pay USD 68 million (MVR 1.04 billion) to the company as financing for the loan.

“Since the state has not received any financial benefits [from the resort] despite the fact that the government owns 30 percent of the shares, the state now want to find a way forward after releasing the shares to the resort,” he said.

Minister said they have made one amendment to the Tourism Act so that they can work on releasing the government shares back to Shangri-La. However, even with this amendment they have to pay MVR 80 million in order to transfer the shares.

Dr. Mausoom said they were now drafting a new amendment to the Tourism Act which would enable Addu Investment to purchase the shares from the government.

The ministry and the company were discussing the matter at the moment, the minister said.

He said the amendment to the Tourism Act will be submitted within the next two weeks. The resort will be reopened this year, he stated.

Canaref Resort Maldives in Addu had recently resumed operations after closing in 2020 as well.

Dr. Mausoom said that even if the 540-bed resort is opened, it will not be fully operational. He said that the economy will be not kickstarted enough to benefit the whole of Addu.