The Ministry of Tourism and Environment has cancelled its previous announcement to develop two resorts in the lagoon of Haa Alifu Kelaa and will re-open the bidding process with added concessions.

The initial call, issued on March 31, sought proposals to reclaim and develop two 12.19-hectare islands within the Kelaa lagoon; however, on June 5, the Ministry declared the bidding period closed and cancelled the announcement.

The decision follows a broader government strategy to boost tourism in regions with limited tourism presence by offering more attractive investment terms.

To support this policy, President Dr Mohamed Muizzu has introduced a framework to incentivise resort development in such atolls, including Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, and Laamu, as well as Addu City.

As part of this initiative, lease acquisition rates per hectare have been reduced across various regulatory frameworks, including open and closed bidding processes and cross-subsidy models for leasing islands, sandbanks, and lagoons.