The government will require $1 billion to develop 10 resorts; those who failed to secure $100 million for loan repayments cannot achieve this: Ibrahim Rasheed

Former Member of Parliament for the Central Maafannu constituency, Ibrahim Rasheed (Bondey), has stated that the government would require $1 billion to develop 10 resorts. He remarked that those who failed to secure $100 million for debt repayment would be unable to achieve such a feat.

He made these remarks while speaking on RaajjeTV's "Fala Surukhee" program.

In this year's Presidential Address, President Dr. Mohamed Muizzu announced that the government will develop at least 10 resorts over the next three years, ensuring that every Maldivian citizen becomes a shareholder in these ventures. President Dr. Muizzu further stated that once these resorts are operational, the government will begin depositing foreign currency earnings directly into the accounts of the citizens.

Referring to the matter, Ibrahim Rasheed stated that peddling falsehoods in the lead-up to an election is a common tactic. He further noted that this is a strategy previously employed by the ruling PNC.

"If we proceed with standard construction methods, it will cost $100 million per island. This means a total of $1 billion would be required. How can we possibly pay $1 billion when we are currently struggling to secure even $100 million to service our debt?" Ibrahim Rasheed said.

He stated that since the government has failed to clarify the identity of the investors, there are significant doubts as to whether the project will proceed in a serious capacity. Furthermore, Ibrahim Rasheed remarked that high-quality resorts cannot be developed without substantial expenditure, adding that the government's claims lack coherence.

Ibrahim Rasheed stated that although the government claims every Maldivian ID card holder will receive a share of the profits from resort development projects as promised by President Muizzu, they have failed to demonstrate a viable mechanism for implementation. While the government asserts that returns from these investments will be deposited starting in 2030, Ibrahim Rasheed argued that any significant financial gain from such a venture would likely not materialize until at least 2050.

He noted that previous administrations had also attempted to enter the tourism industry, but the outcomes were unfavorable. Ibrahim Rasheed highlighted the efforts made during former President Maumoon Abdul Gayoom’s tenure to involve the government in the tourism sector through the establishment of the Maldives Tourism Development Corporation (MTDC). He further stated that the public gained no real benefit from MTDC, which was initially launched by selling shares to citizens. Ibrahim Rasheed asserted that the model currently proposed by President Muizzu is a similarly failed approach.

He further stated that this was an attempt to deceive the public. Ibrahim Rasheed added that such claims were nothing more than a fantasy.