Tourism Minister Dr. Abdullah Mausoom says the Ministry would recommend an amendment to the Tourism Act in the next two weeks to avoid a massive payout after the Government gives up its share of the Shangri-la resort in Addu city.
He said this while speaking at the parliament today after he was summoned to the legislative house by the MP for Addu Meedhoo Constituency Rozaina Adam to inquire about why the resort is yet to resume operations after it closed its doors due to the COVID-19 pandemic.
Minister Mausoom said that the resort is yet to resume services because the Government has not been able to release its shares of the resort and once the shares are released the resort would be up and running this year.
He added that it was yet difficult to give a specific date on which the resort would be re-opened.
The Minister clarified that the Government holds a 30 percent share of the resort and as per the agreement it had made with Addu Investment Private Ltd, the government must share any losses sustained by the resort.
He said that the government is obligated to pay USD 68 as loan financing to the resort.
Minister Mausoom said that the government can push for an amendment to the Tourism Act in order to give up its shares of the resort but that this would cost MVR 80 million.
He said that it is now looking to suggest a new amendment that would allow the Government to sell its 30 percent share to Addu Investment Private Ltd and it is now in the draft stage.
Minister Mausoom said that the ministry would submit the amendment in two weeks' time and that the Shangri-la resort can then be re-opened.
