Rasmalé Project to Generate 8 Times More TGST Revenue Than Typical Resort: Minister

The Rasmalé project will generate eight times more Tourism Goods and Services Tax (TGST) revenue for the state than a typical resort island, Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib has said. Speaking at the Maldives Accountants Forum, the minister revealed that once completed, the Rasmalé project alone could bring in $340 million per year in TGST, translating to approximately $680,000 per hectare annually. In contrast, a 500-hectare resort island leased under the Tourism Act for 99 years yields between $75 million and $316 million in acquisition costs and about $2 million in annual rent. Dr. Muththalib noted that the first transaction of the 8,800 properties to be developed under the project will generate a 10% revenue for the state, with an estimated $3.1 billion accruing to the government within ten years. An additional $500 million is expected from advance payments on 5,000 housing units before construction begins. The project, awarded to UAE-based developer Eagle Hills, involves reclaiming 500 hectares of lagoon in Fushidhiggaru. The properties will be offered on a leasehold basis for up to 99 years. The minister assured that the traditional "one island, one resort" concept would be preserved. Opposition parties have raised concerns, calling the project opaque and demanding full disclosure of the signed agreement. However, Dr. Muththalib emphasized that the real estate tourism model, which diversifies the economy, is the best use of the Maldives' natural beauty and security advantages, aligning with President Dr. Mohamed Muizzu's vision of achieving developed nation status by 2040.