Hajj Corporation seeks contractors for city hotel project in Maafushi

The Hajj Corporation has announced plans to develop a city hotel in Maafushi and is inviting interested local and international contractors to register for the project. The hotel will be constructed under Maafushi Islamic Tourism Pvt Ltd (MIT), a newly formed subsidiary of the Hajj Corporation.

Interested parties must register with the Hajj Corporation before Wednesday next week, submitting a non-refundable registration fee of MVR 30,000 or USD 2,000. The bid opening is scheduled for the 11th of next month.

Maafushi, known as the Maldives’ largest guesthouse island, has long been a hub for local tourism. The new hotel aims to expand the island’s tourism infrastructure through private investment under the umbrella of Islamic tourism.

MIT, the subsidiary overseeing the project, was registered in October 2024, according to the national business portal. Mohamed Shihab, the Deputy Managing Director of the Hajj Corporation, serves as the Managing Director of MIT. Other directors include Hajj Corporation MD Mohamed Shakeel and several senior officials from the Corporation.

The move to diversify the Hajj Corporation’s portfolio into the tourism sector comes amid growing scrutiny. During a parliamentary session in December, Finance Minister Moosa Zameer expressed caution regarding state-owned companies expanding beyond their core mandates. He emphasized the importance of limiting government companies like the Hajj Corporation to their specialized areas.

"The Hajj Corporation is responsible for managing funds to send pilgrims to Hajj. If there is an excess fund, it should be entrusted to specialists," Zameer said. "If every SOE—from HDC to Fenaka—begins investing in tourism, building guesthouses and resorts, the overall results may not be favorable."

In response, Hajj Corporation MD Mohamed Shakeel defended the initiative, citing the financial gap between the actual cost and the price charged to pilgrims. He revealed that each pilgrim costs the company nearly MVR 100,000, while the current fee charged is MVR 69,000, resulting in an additional MVR 30,000 subsidy per person.

To address this financial burden, the Hajj Corporation has decided to diversify its revenue streams through ventures such as hospitality and housing. In September last year, the design of an affordable housing project was awarded to the government’s FDC.