Resort Revenue Reform on the Horizon as President Muizzu Proposes Direct Council Share

President Dr Mohamed Muizzu has announced plans to amend government regulations to ensure that local island councils receive direct financial benefits when uninhabited islands within their jurisdictions are developed into tourist resorts.
The announcement, made during a visit to Omadhoo, Thaa Atoll, addresses a longstanding legal constraint that requires islands to be formally removed from council jurisdiction before resort development can proceed. While such projects often generate employment and stimulate economic activity in nearby inhabited islands, governing councils have historically been excluded from receiving direct revenue.
“This island also has two islands within its jurisdiction. The law states that a resort cannot be developed while it is kept within the jurisdiction,” President Muizzu told residents. “The matter of how this could be changed to provide a benefit to the councils has remained unresolved. We are now exploring the opportunity to create a way for the councils to benefit by making changes to the regulations.”
The president underscored that the proposed reform would be pursued through regulatory adjustments rather than legislative amendment. Under the current framework, islands within council jurisdiction may be leased for smaller-scale tourism ventures such as city hotels or guesthouses. Resort developments, typically more lucrative, have required the removal of islands from council oversight, a step some councils have previously requested to facilitate investment.
President Muizzu underscored the importance of establishing a formal mechanism through which councils can benefit directly from high-value resort projects. The issue is particularly salient for Omadhoo, which has two uninhabited islands under its administrative purview.
During his visit, the president outlined a series of infrastructure and community development pledges. He committed to expediting the island’s stalled water and sewerage project by reassigning it to a state-owned company, and pledged that a halted school construction initiative would be completed before the next academic year.
Additional upgrades were announced for the island’s sports and public facilities. The football pitch will be modernised with new turf and lighting, and a new volleyball court will be included in the forthcoming national budget.
Plans for religious and healthcare infrastructure were also detailed. The construction of a new mosque and the expansion of the local health centre will be included in the next budget cycle. A new ambulance is expected to be delivered before year-end, and the administration will consider the council’s request to dredge a new channel on the western side of the island’s harbour.
President Muizzu met with members of the Omadhoo Island Council, the Women’s Development Committee (WDC), and heads of local institutions to discuss key development concerns. The meeting was held at the Omadhoo Fenaka Corporation Office.
During the discussions, council members outlined the community’s most pressing needs, including solutions for the island’s water and sewerage systems and measures to alleviate space constraints at the school and health centre. Requests were also made for enhanced shoreline protection to prevent erosion, initiatives to address housing shortages, road development, and improved sports facilities.
As part of the visit, the government formalised a road development agreement with the Road Development Corporation (RDC). The contract was signed by the Minister of Construction, Housing, and Infrastructure, Dr Abdulla Muththalib, and the RDC Managing Director, Ibrahim Nazeem, during a ceremony attended by local residents.
The initiative forms part of a national strategy to upgrade island road networks to modern standards, with development guided by community preferences. Government policy prioritises roads serving key institutions and those in the most deteriorated condition. Planned upgrades will include essential infrastructure such as water drainage systems. Officials anticipate that the completed project will provide Omadhoo residents with access to a high-quality road network.
In a move to strengthen local security, construction has officially commenced on a new police station in Omadhoo. The project was inaugurated during the president’s visit, with Minister of Homeland Security and Technology, Ali Ihusaan, officiating the ceremony.
The station’s construction has been contracted to Fenaka Corporation Limited and aligns with the administration’s goal of establishing police stations on every inhabited island within two years. The government views this initiative as integral to its broader efforts to foster a safe and secure society.
The Omadhoo police station project forms part of a wider national vision to ensure police presence on every inhabited island in the country. Commissioner of Police, Ismail Naveen, confirmed that police services have now been fully established across all inhabited islands in four atolls: Gaafu Alifu, Vaavu, Faafu, and Kaafu (excluding the Greater Malé area).
The commissioner stated that the expansion will adopt a neighbourhood policing model, with enhanced investigative capabilities. He described the initiative as a milestone in bringing essential services closer to the public and strengthening community safety through inter-institutional collaboration.
In his presidential address earlier this year, President Muizzu pledged to extend police services to all remaining islands and to initiate the construction of permanent stations where services currently operate from temporary facilities. The administration aims to achieve full nationwide coverage by year-end.
President Muizzu also inaugurated a new Bank of Maldives (BML) Automated Teller Machine (ATM) on Omadhoo. Following the launch, he presented a commemorative bank card to the president of the Omadhoo Council. The self-service ATM will offer 24-hour access to cash withdrawals, deposits, bill payments, and money transfers for individuals and businesses.
The installation is part of a broader initiative led by the Ministry of Economic Development and Trade and implemented by BML to install ATMs on every inhabited island. To date, the service has been established across all inhabited islands in 13 atolls. The Omadhoo ATM is one of eight planned for Thaa Atoll, with BML targeting nationwide completion by the end of the year.
Upon arrival in Omadhoo, President Muizzu was welcomed by a large gathering of residents and senior officials from the island’s institutions. The visit forms part of an ongoing presidential tour across the country’s atolls, aimed at engaging directly with local councils and communities.
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