The Maldives Tourism Development Corporation’s (MTDC’s) board of directors has decided to sell the government-owned company’s biggest asset, Herethere resort in Addu City, for US$30 million to a company with a majority stake owned by local tourism magnate ‘Champa’ Hussain Afeef.
MTDC Managing Director Mohamed Matheen told newspaper Haveeru yesterday that the decision was made to sell Herethere to Afeef’s Treetop Investment Pvt Ltd because the government corporation did not have the finances to profitably operate the resort.
He added that a large investment was needed to fix problems with the beach and the environment of the resort in the southernmost atoll.
Herethere was the first resort developed and opened by MTDC while Afeef was chairman of the government’s tourism company.
Tourism pioneer Afeef meanwhile told the local daily that the Herethere development would take place in conjunction with the development of the international airport in Gan.
In November 2012, thirty percent of the Addu International Airport Ltd (AIAL) was sold to Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.