Government terminates agreements for resorts Alidhoo and Kudarah

Government has terminated agreements for two resorts on Haa Alif Alidhoo and Alif Dhaalu Kudarah owner by Yacht Tours, following the company's failure to pay lease and fine charges deadline allowed by the second notice issued by the government expired today.

Last December, the government revoked licenses for the two resorts and sent a notice to the company to hand over the two resorts to the government.

This is the first time the Maldivian government has terminated an agreement for a tourist resort due to failure to pay rent or fines.

Kaashidhoo MP Abdulla Jabir owns shares of the Yacht Tours, the parent company that owns and manages the two resorts.

An official from the Tourism Ministry said today that the agreements were terminated following the company’s failure comply with the notice and pay rent for the first quarter of 2013.

“When the notice was first sent, it was agreed that the rent be paid in over a 3 year term and the fine by paid in over a 10 year term. The agreement was terminated after being notified for a second time for failure to pay rent and failing to pay even then. We will go and take over the two resorts within the week,” the official said.

The Tourism Ministry official said that the Alidhoo agreement requires the company to fully hand over the resort within seven days from the day that team from the Tourism Ministry goes on the island. The agreement on Kudarah states that the island has to be handed over at the moment when the team arrives on the island.

“There are tourists on Alidhoo. Kudarah however, is closed down for renovation. We will open for bids to manage the two resorts again,” the official said.

The official said that the final notice sent last Tuesday did stated that the government will terminate the agreement if they fail to pay the rent within seven day’s time.

According to the official, the overdue rent and fines for the two resorts sum up to about $7 million.