Hajj Corporation issues second tender for Maafushi City Hotel project

The Maldives Hajj Corporation Limited has issued a second tender for the construction of a city hotel in K. Maafushi, following the cancellation of its initial bid announced in August 2025.

The revised tender was published on Tuesday, with Hajj Corporation inviting local and international contractors to submit proposals for the project, which is being developed under its newly formed subsidiary, Maafushi Islamic Tourism Pvt Ltd (MIT).

According to the announcement, interested parties must register by Tuesday, October 14, and pay a non-refundable registration fee of MVR 30,000 or USD 2,000. Bidders who paid under the first tender are exempt from paying again, while those who registered but did not pay must settle the fee to participate.

The bid opening session is scheduled for November 13, at the Hajj Corporation headquarters in Male'. Bids must be submitted in sealed physical format and will be opened in the presence of attending bidders. The bid security requirement is MVR 800,000, valid for 120 days from the date of opening. The corporation has not disclosed the number of rooms planned for the hotel.

The project is part of Hajj Corporation’s broader strategy to diversify revenue streams through halal tourism, as previously announced by Managing Director Mohamed Shakeel on November 4 last year. MIT was registered in October 2024 to oversee such ventures.

However, the initiative has faced scrutiny. During a Parliament session on December 3 last year, Finance Minister Moosa Zameer expressed skepticism about Hajj Corporation’s entry into the hospitality sector, advising the corporation to reconsider its involvement in hotel and guesthouse development. He emphasized that state-owned enterprises should remain focused on their core mandates.

In response, Shakeel stated that Hajj Corporation would adhere to the ministry’s guidance. He also cited the financial strain of subsidizing Hajj pilgrims, each costing the corporation nearly MVR 100,000, while the fee charged is MVR 69,000, as a key reason for exploring alternative income sources.

Maafushi, known as the Maldives’ largest guesthouse island, continues to attract investment in tourism infrastructure. The proposed city hotel aims to enhance local tourism offerings under the framework of Islamic hospitality.