If you have a couple of hundred million dollars in disposable income, now is definitely the time to drop in by to Maldives for a small business trip. The Maldives government is in the process of bidding out 4 small beautiful islands for eligible buyers to raise money to develop a number of housing units for the countrymen. The issue of housing has been a problem for the country and with the new democratic government hard pressed to make good upon election pledges, the feeding frenzy of resorts idea came to happen.
Although there were several more islands given away to develop in the last few years which are still not developed, these new four islands would not have to go the same way as those other islands if more investors show an interest. The islands which were stalled mostly were taken up by existing pool of resort owners under various names and pseudonyms and front companies just because they knew how much the islands are worth despite having funds to develop them. These islands are now in the process of being renegotiated to make them profitable business ventures and possibly to be sold to other parties who can deliver.
The process of bidding and acquiring a resort in Maldives started a small informal venture which has grown up to be a complicated issue where the talents of various consultancies work tirelessly sometimes for a year to produce ‘a-resort-on-paper’ to impress the bid evaluation committee which ultimately scores the prospective bids and chooses a ‘winner’. The winner of course is overjoyed every time because its commonly understood that the investment to cover a normal resort pays off in roughly 3 years and a luxury one in 7 years. After which everything the resort earns is profits and the tax bill to shave some of those earnings is thankfully (or not) is still quietly sleeping in the parliament.