The Government of the Maldives has decided to sell Shangri-La Villingili Resort after being unable to reopen the resort following its closure in 2020 due to the COVID-19 pandemic.
Shangri-La was developed in Addu City as an upmarket resort with 60 water villas, 26 beach villas, 28 pool villa, 16 tree house villas, and two presidential villas. The government holds 30% of the shares of the resort while the remaining 70% is owned by the resort operator Addu Investment Private Limited. The government has faced challenges in reopening the 284-bed resort and has hired US-based consulting firm The CBR Group to sell the resort.
Minister of Tourism Abdulla Mausoom has said the resort is a financial burden for the government, as it has to pay USD68 million for the loans taken to cover the damages of the non-operation of the resort. As such, the government has decided to sell its shares of the resort after passing the 11th amendment to the Maldives Tourism Act to allow the government to transfer the shares with a minimum loss.
The non-operation of Shangri-La Villingili Resort is a major concern for the people of Addu. As such, many have expressed concern that Addu is not able to reap the benefits of the growth in the tourism industry due to delays in making the resort operational again.