A.S.I.Moosa (Sappe’), Dhivehi Observer, 05 April 2005
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Winners of the 11 new resorts tendered last year was announced today but the basic mood amongst the bidders is that of disappointment and utter waste of time and money. As anticipated they were awarded to the same parties which scored the highest points in the controversial markings done by Ismail Firag�s �Angels� belonging to the unknown American firm who completed the evaluation is world record time. Tourism Minister Dr Luthfee said that the islands would be finally awarded to parties after thoroughly checking whether one party or company gets more than one resort. However, Ismail Firag (who allegedly gets a 5% of Sunland Pvt Ltd�s profits and VIP treatment and free booze from all their resort) has ensured that Sunland got 3 resorts even this time. N. Maavelaavaru, Th. Kalhufahalafushi and Ga. Funamaudua have been awarded to Sunland. Some say they secured a 4th one through a made up company. This brings the number of resorts owned/operated by Sunland Pvt Ltd to 9 or 10 now. In 1997 Sunland was awarded 3 islands out of which they only managed to build only one and had to dispose off the other two for relatively small cash payments. This time, AAA Company also secured more than one resort in the names of their directors but the good thing is they can afford to build and develop and operate their own resorts and not sell them to tycoons.
In Maldives, the economic wealth and power is in the hands of less than 3% of the population, which comprises of Gayyoom�s family, friends and close associates. This is believed to be another world record for Maldives. In a democratic society, income distribution has to be equitable, the cumulative share of income would be equal to the cumulative population share. As Adam Smith said, you can never achieve perfect distribution but it is important to work toward that. It is a fact that the lesser the income disparity, the healthier the economy and the more prosperous people are. For example, In America (USA) (which is by far the largest economy and the richest country in the world) more than 99.6% of the country�s wealth is controlled by more than 90% of the population which has ensured that they are by far the world�s most prosperous and richest nation in the world with nearly US$ 30,000 GDP per capita with a population of nearly 300 million. Hence, it would have been much wiser and better for the economy as well as less risky if these new resorts had been awarded to 11 new parties, who do not have any resorts but could benefit enormously from owning and managing a resort, such as the prominent travel agents in Maldives, like Sea N See, Skorpion Travel, Capital Travel & Tours and Inner Maldives, just to mention a few. Sadly, Gayyoom knows bugger all about economics and hasn�t got a clue of the definition of economy of scale.
Maumoon is unlikely to change his decisions but let us at least hope that the resort owners have the courage to demand for a reduction of rent based on the current change in the demand for Maldives as a result of the December '04 tsunami. Surely, Maldives is no longer the ultimate worry free holiday destination in the world and according to confirmed reports from resort operators, they have seen a totally different trend of business than it was before the tsunami and the threat of another tsunami at any given time will undoubtedly be detrimental to the tourism industry. Once again, sadly, Gayyoom has no idea what global economy means or rather what macro-economics is.
Tourism Ministry which calculates rents for the current existing resorts has a policy of charging high rents to those resorts which are closer to Male International Airport and the lower to those which are further away. The further away it is, the lower the rent is calculated perhaps makes economic sense. Those who have been granted resorts at rents of USD7,250 to Maldivian Bangalhi price Shuaib for Hdh.Dhonakulhi and USD7,000 taken by Abdul Rauf (M.Snowrose) for Lh. Hudhufushi, are both still not in operation. Abdul Rauf was given a 50% write-off for the rent he owed to the government till December of 2004 because his daughter is married to Prince Faris, Son of King Gayyoom and similar favours rendered to Shuaib because he is married to Prince Dunya, daughter of Gayyoom who is Gayyoom�s favourite to succeed him to the throne.
Only a few will benefit from this deal, Gayyoom and his cronies like Ismail Firag. Winner of these resorts are not the richest people in Maldives but will in deed file for bankruptcy unless a more democratic government is installed who will review their rents in accordance with international and global market trends and based on macro-economics.
The 'Unlucky' Winners are:
SH. ALIDHOO
Awarded to Tranquility Pvt Ltd whose shareholders are Ahmed Saleem(H. Fashan) and Zuleyha Mohamed of the same house for an average rent of USD11,080 per bed over the next 10 years
HDH. HONDAAFUSHI
Awarded to Mr Abdulla Ali (H.Giritherege), the main shareholder of AAA company which already operates 4 resorts for an average rent of USD27,777 over the next 10 years
SH DHOLHIYADHOO
Awarded to Mr Mohmed Latheef (H Baraboamaage) for an average rent of USD17,950 per bed over the next 10 years
N RANDHELI
Awarded to the late Mohamed Zahid (Six-X Zahid) of M. Vaadheege (Maumoon�s relative) for an average rent of USD18,125 per bed over the next 10 years
N MAAVELAVARU
Awarded to Big Island Resorts Pvt Ltd whose shareholders are Husnu Al Suood (Husband of Sunland shareholder�s sister) of Ma. Uraha, Dr Abdullah Zahir (again another husband of Sunland shareholder�s sister) of Ma. Uraha and Dr Abdul Majeed Abdul Baaree (Sunland Shareholder) of H. Lantan for an average rent of USD21,550 per bed over the next 10 years
TH. KALHUFAHALAFUSHI
Awarded Mr. Shabeer Ahmed (H. Millennia), the largest shareholder of Sunland Pvt Ltd for an average rent of USD26,758 per bed over the next 10 years
L. OLHUVELI
Awarded to Mr. Mohamed Ibrahim Didi (Neeravali, Gn. Fuahmulah / c/o: G. Veyla) for an average rent of USD16,649.8 per bed over the next 10 years
GA. FUNAMAUDUA
Awarded to Dhekunu Dhuni Investments Pvt Ltd whose shareholders are Aishath Lululina (Daughter of Sunland shareholder Mr Nazeer of H. Gadhage Hulhangubai, Mohamed Muzuny (Ma. Thabagge�) and Mohamed Nazeer (Sunland Shareholder) of H. Lantan for an average rent of USD10,350 per bed over the next 10 years
GA. HADAHAA
was awarded to Driftwood Maldives Pvt Ltd whose shareholders are Ashraf Ali, Arshad Ali, Asad Ali and Shaaheena Ali, all from M. Vaareyvilla for an average rent of USD10,300 per bed over the next 10 years
GDH. KONOTTA
Awarded to Crystal Lagoon Resorts Pvt Ltd whose shareholders are Ali Ahmed(S. Maradhoo, (Keeranmaage) and Mohamed Rasheed (M. Hanifaru) and Ahmed Haleem`(Ma. Naibuge�) and Abdullah Ali`(Gdh. Thinadhoo Fen Muleege) for an average rent of USD11,600 per bed over the next 10 years
GDH.LONUDHUAHUTTA
Awarded to One and Half Degree Maldives Pvt Ltd, whose shareholder are Ibrahim Naseer (M. Naseemusobaa) and Hussein Solah (G. Fithuroanuge�) for an average rent of USD12,500 per bed over the next 10 years
Source: Dhivehi Observer
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