Hajj Corporation Launches Maafushi Hotel Project, Faces Opposition from Islamic Minister
The Hajj Corporation has officially invited contractors to register for the construction of a new city hotel on Maafushi Island, marking a significant step into the tourism sector. This project will be developed through Maafushi Islamic Tourism Pvt Ltd (MIT), a subsidiary formed last year under the corporation’s umbrella.
Expanding Tourism Infrastructure on Maafushi
Maafushi is well known as the Maldives’ largest guesthouse island and a popular destination for local tourism. The new hotel project seeks to boost the island’s tourism offerings by introducing a city hotel under the concept of Islamic tourism. Those interested in bidding must submit their registration along with a non-refundable fee of MVR 30,000 (USD 2,000) before the deadline next Wednesday. The bidding process will officially open on the 11th of next month.
MIT, the company overseeing the project, was registered in October 2024. Mohamed Shihab, Deputy Managing Director of the Hajj Corporation, serves as its Managing Director. The board includes Hajj Corporation Managing Director Mohamed Shakeel and several senior officials from the corporation.
Financial Pressures Push Hajj Corporation Into New Ventures
The Hajj Corporation was established over a decade ago during former Islamic Minister Dr. Mohamed Shaheem Ali Saeed’s tenure. It was created to regulate pilgrimage services and protect pilgrims from fraudulent operators. Traditionally focused on managing funds to support Maldivians going on Hajj, the corporation now faces financial challenges.
Mohamed Shakeel explained that the real cost of sending one pilgrim is close to MVR 100,000, but the corporation charges only MVR 69,000 per pilgrim. The remaining amount, roughly MVR 30,000 per pilgrim, is subsidized by the corporation, creating a significant annual financial gap.
To manage this strain, the Hajj Corporation has chosen to diversify its income sources. The Maafushi hotel project is part of this strategy, alongside other initiatives like an affordable housing project for which the building design was awarded to the government’s Fahi Dhiriulhun Corporation (FDC) in September 2024.
Opposition From Islamic Minister and Government Officials
Despite these plans, not everyone supports the Hajj Corporation’s entry into tourism. Islamic Minister Dr. Mohamed Shaheem Ali Saeed expressed clear opposition to the project. He said the ministry was not consulted about the hotel development or the corporation’s expansion into the hospitality sector.
He questioned the feasibility of the plan and said he has not seen any discussions or progress reports. “I am accountable to the cabinet and parliament for the Hajj Corporation, yet there has been no consultation with me,” Dr. Shaheem stated. He also argued that the corporation has safer ways to manage funds without entering commercial tourism.
Finance Minister Moosa Zameer shared similar concerns during a parliamentary session in December. He warned that allowing state-owned enterprises to invest broadly in tourism could lead to less than favorable outcomes. He urged that companies like the Hajj Corporation focus on their specialized mandates instead of expanding into unfamiliar sectors such as guesthouses and resorts.
What Lies Ahead for the Hajj Corporation and Maafushi?
The corporation’s leadership stands by the project as a necessary move to bridge financial gaps while supporting the pilgrimage fund. Whether the Maafushi hotel will become a sustainable venture remains to be seen, particularly as skepticism from government figures and the Islamic Ministry lingers.
With contractor registration underway and the bid opening date approaching, all eyes will be on how this new chapter unfolds. The outcome will likely influence future discussions on the role of state-owned enterprises in the Maldives’ growing tourism industry and their financial strategies.