President Ibrahim Mohamed Solih has announced the government will give up its 30% stake in the Addu Investment Private Limited, which developed the Shangri-La Resort, if the people of Addu City wish for it.
Speaking at a gathering held with citizens of Feydhoo, Addu, President Solih suggested the government could release its stake in the Shangri-La Resort to enable it to operate independently and profitably. Noting that Shangri-La's operations have stopped and it is facing losses of millions of dollars, the president said he does not believe the resort can be run in a joint venture. He said the government is required to pay USD70 million to release the stake.
Shangri-La was developed in Addu as an upmarket resort with 60 water villas, 26 beach villas, 28 pool villas, 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 which was closed down due to COVID-19.
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.