Travel & Tourism

The (tourism) bid islands report card

Most of the tourism islands up for bids, announced in 2021 by the Tourism Ministry, are in comparatively less active regions in terms of tourism yet this could open up new market avenues while also increasing overall capacity.

Source - Ministry of Tourism

Source - Ministry of Tourism

The Maldivian archipelago comprises a multitude of immaculate uninhabited islands and serene lagoons scattered throughout the territory, brimming with natural wonders. The Maldivian tourism industry capitalises on these natural assets and has developed many of these locations for tourists to visit and enjoy the natural beauty.

In mid-2021, the Tourism Ministry announced that they were opening new bid opportunities for interested parties to lease, develop, and operate tourist resorts. The Invitation for Bids (IFB) encompassed 18 islands in 10 different atolls in their initial announcement last year. Three more islands were added to the IFB in an amendment dated 17 January 2022. Some of the islands which are up for lease along, with smaller neighbouring islands or sandbanks, can be developed along with the respective islands.

Most of the islands now up for lease are in comparatively less active regions in terms of Maldives' tourism. Development of these areas could open up new avenues in the market and increase the overall capacity of the tourism industry as a whole. It would also greatly benefit nearby local communities by providing a multitude of employment opportunities and boosting development of infrastructure and facilities due to higher traffic in those areas.

Analysis of island conditions for development

The Ministry of Tourism has conducted extensive island scoping surveys for most of the islands included in the IFB and the collected data is available below, apart from a few islands. The Ministry has surveyed terrestrial, marine, and coastal environments of the respective islands and consulted stakeholders, island and atoll councils, neighbouring communities, in the region. Additionally, they have included recommendations and considerations for resort development based on the data they have gathered.

Haa Alif Alidhuffarufinaolhu

Recommended for development taking into consideration the following limitations.

  • Requires extensive reclamation to develop a suitably sized island for a resort
  • Extensive landscaping required including the importation of large quantities of palm trees
  • One of two major sand banks in the region — loss of this sand bank will affect natural patterns of bird roosting and restrict locals from visiting for day trips
  • The coral reef around the island is poor, hence is not ideal for snorkelling

Has Alif Medhafushi

Recommended for development taking into consideration the following limitations.

  • Highly volatile island with severe, periodic, erosion requiring extensive shore protection measures to stabilise the island
  • Sparse natural vegetation requiring extensive landscaping
  • Invasive species require intervention
  • The island’s reef lacks coral life, and concentrated numbers of Crown-Of-Thorns Starfish (COTS) have been observed on the reef — management measures must be implemented to control COTS population and enable reef rejuvenation

Haa Dhaal Kudafarufasgandu

Not recommended for development due to the following issues. 

  • Small sandbank which requires extensive land reclamation to create an island suitable for resort development — notably the reef does not have sufficient space for extensive reclamation

Shaviyani Kudalhaimendhoo

Recommended for development taking into consideration the following limitations.

  • Small Island with limited beach — the eastern beach is predominantly composed of coral rubble and beach rock
  • Affected by very strong waves and severe erosion
  • Enlarging the island, beach redevelopment and shore protection measures required to develop
  • Boasts rich biodiversity due to multiple ecosystems, and any sustainable resort development will require conservation of these areas
  • Heavy intervention required to control the pest issues on the island

Raa - Eh’thigili

Not recommended for development due to the following issues. 

  • Contains a large and diverse wetland with high biodiversity and protected trees
  • No sandy beach around 60 percent of the shoreline
  • Rough wave conditions and strong currents around the island, affecting accessibility

Faafu Jinnathugau and En’bulufushi

Not recommended for development due to the following issues. 

  • The islands are very small and geomorphologically volatile — requires extensive shore protection to maintain shorelines
  • Require extensive land reclamation to develop the islands into reasonably sized resorts
  • Vegetation is low and extensive re-vegetation will be required
  • Developing resorts at these locations comes at very high environmental costs

Meemu Seedheehuraa and Seedheehuraa Veligandu

Not recommended for development due to the following issues. 

  • Requires extensive land reclamation with significant adverse impacts on the reef system
  • Small size of the islands with highly mobile beaches

Thaa Olhufushi

Recommended for development taking into consideration the following limitations.

  • This is a small narrow island (25 – 50 m) with very good beach, subject to periodic geomorphological instability and severe erosion — vegetation is generally low with sparse coconut palms
  • To make this island suitable for a typical resort development, land reclamation and shore protection measures will be required to maintain the beaches

Thaa Olhufushifinolhu

Not recommended for development due to the following issues

  • Extensive reclamation required to create an island at this site, which will result in severe adverse impact on the surrounding reef system

Thaa Kaaddoo

Recommended for development taking into consideration the following limitations.

  • Small island used for forestry
  • Dominated by coconut palms with limited undergrowth vegetation
  • Limited beach
  • Extensive beach rock, coarse beach, and strong wave conditions on the eastern side
  • Requires enlarging the island, beach redevelopment, extensive shore protection measures

Laamu Bodu Mungnafushi

Recommended for development taking into consideration the following limitations.

  • Small Island with a good beach — severe erosion requires shore protection
  • Narrow width (50-60m)
  • Low vegetation 
  • Access to good reef
  • Seagrass formations likely to overtake lagoon seabed in the next five years 

Laamu Kaashidhoo

Recommended for development taking into consideration the following limitations.

  • Western shoreline composed of coral rubble and extensive beach rock
  • Affected by very strong waves on one side
  • Enlarging the island, beach redevelopment and shore protection required 
  • Seagrass formations likely to overtake lagoon seabed in the next five years

Gaaf Alif Funadhooviligilla

Recommended for development taking into consideration the following limitations.

  • Affected by strong waves from one side
  • Severe beach erosion on southern side
  • Shore protection measures required
  • Access to island may be difficult if the swell rises from the north-east

Gaaf Alif Maarehaa

Recommended for development along with extensive shore protection measures for ease of access. 

Gaaf Dhaal Koderataa

Not recommended for development due to unavailability of a significant beach, and accessibility issues. 

As it stands

Out of the 21 total islands available for lease since October 2021, less than half have received bids as of April 2022. The lack of interest in these islands could be explained by the natural conditions of the islands and unsuitability for development.

As evident from the Ministry’s own surveys, development of these islands requires extensive work and investment, before even commencing development of the resort properties. Additionally, most of the work to be done will have environmental ramifications of varying extents and the geomorphic instability of most islands casts a shadow of uncertainty over any plans prepared to develop them further. 

However, the prestigious nature of the tourism industry in Maldives and the many potential rewards to be reaped by both investors and locals, the drawbacks of developing these islands appear to greatly outweigh the benefits.

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