A Saudi real estate investment and development firm has announced that it will develop a US$100 million resort on the Vadinolhu Island in Laamu Atoll in the Maldives. The resort will have 100 beach villas, world-class dining services, wellness facilities and leisure activities. The project is expected to be completed by 2017.
Luxury tourism currently accounts for 70 to 80 percent of the country’s GDP. An IMF report has noted that investment in Maldivian resorts can provide a quicker return as compared to investment in industries. The sector attracted over 1.2 million tourists in 2013.
The IMF report also noted that the tourism industry in the Maldives is still only lightly taxed in comparison to other destinations, despite the government’s plan to increase tourist goods and services tax to 12 percent later this year.