Muizzu’s pledge to deposit $400 into every citizen's account by developing ten resorts was made without a proper understanding of facts: Former VP

Former Vice President Faisal Naseem has criticized President Muizzu’s pledge to develop 10 resorts within the next three years and deposit $400 into every Maldivian citizen's account, stating that the President lacks a basic understanding of the situation.

Faisal, a seasoned professional with extensive experience in the tourism sector, has strongly criticized President Muizzu's remarks regarding this matter in his Presidential Address.

Faisal noted that while statistics project the Maldives' population to exceed 500,000 by 2030, the figures do not demonstrate how 10 resorts could generate $200 million in profit to facilitate a $400 per capita distribution.

Critiquing Muizzu’s remarks in detail, Faisal stated that constructing a 150-room five-star resort near Malé would require approximately $80 million, taking into account current exchange rates, commodity prices, and construction costs.

"When we talk about developing 10 resorts, we are looking at securing approximately $800 million. We are already struggling to secure funding for social housing. Given this situation, it is unclear how the government intends to raise such a vast amount to build five-star resorts," Faisal said.

Amidst the continuous global economic challenges and the intensifying competition within the tourism sector, Minister Faisal questioned the feasibility of maintaining an Average Daily Rate (ADR) of $500 per room. He noted that even with a 65 percent occupancy rate at a $500 price point, the maximum room revenue generated would only range between $17 million and $20 million.

Furthermore, Faisal questioned whether there is an understanding of the actual remaining balance once resort operational costs—including taxes, employee salaries, and other overheads—are deducted. He noted that maintaining the operations of such a resort would require a minimum occupancy rate of 50 percent throughout the entire year. Additionally, he stated that it would take at least eight years to repay the loans taken for the project.

"We are talking about the necessity of generating $200 million in profit from 10 resorts."

Minister Faisal stated that the Maldives has maintained its status as the world's most popular destination due to the tireless efforts of the private sector. He further noted that, to date, every instance of government intervention in the tourism industry has resulted in significant losses.

"By including baseless and arbitrary claims in the Presidential Address without proper verification, the President loses public trust, and the people will eventually cease to pay any heed to the leader's words," Faisal stated.

In a post on X on Thursday, the former Vice President also questioned the status of several previous pledges made by President Muizzu.

Consider this: where is the glass tunnel? Where is the Addu bridge? What happened to the bunkering services and the Development Bank of Maldives? Where are the international airports promised for GA. Villingili and GDh. Thinadhoo? What has become of the projects that were pledged to be completed in the 2025 Presidential Address?

Faisal Naseem

Faisal stated that the Presidential Address should be a document that inspires hope among the public and clearly outlines the government's policies for national progress. He further emphasized that the address must not mislead the public by making unrealistic promises. Faisal noted that regardless of its length, a speech lacking substance and meaningful content would be nothing more than empty rhetoric.

Faisal further emphasized that the government must focus on reducing wasteful expenditure, halting the creation of jobs for political purposes, and working towards economic recovery while encouraging self-sufficiency. He noted that economic stability and public well-being can only be achieved through such measures.