The Maldives government has decided to release its stake in Shangri-La Vilingili Resort and Spa, Minister of Tourism Dr. Abdulla Mausoom said.
The resort which opened in Addu atoll in 2009, has remained closed due to several disputes.
The minister made this announcement in response to a question by a parliament MP on Tuesday’s sitting.
Minister Mausoom said that the government has decided to release its stake in the resort and has informed Addu Investment Private Limited, which owns the resort. The minister said the matter would be settled once they receive a response.
While the state owns 30% of the resort, Addu Investment owned the remaining stake. Shangri-La was developed and opened in Vilingili in collaboration with Shangri-La; one of the largest hotel companies in Hong Kong.
“The government has done the best it can. It has reduced the rent by a great deal. Discussions with Addu City MP’s and council members are underway to give up the government’s share,” Mausoom said.
Though the minister had not disclosed the details of the state’s agreement to release its stake, Maldives President Ibrahim Mohamed Solih said in Addu City last month that the government would have to pay USD70 million if it released its stake.
“The company has been running at a lose in the past. When you look at the government’s share, it is in the negative. If we release the stakes, we have to pay USD70 million. The company’s financial statements have been submitted to the government,” President Solih said.
According to President Solih the only option for the state now is to cut the company’s losses and leave the property’s stake.