Hajj Corporation to Establish City Hotel in Maafushi

The Maldives Hajj Corporation announced its plan to establish a city hotel on Maafushi island in Kaafu Atoll, one of the Maldives’ leading local tourism destinations, as part of a broader investment in halal tourism. 

The project is aimed at diversifying the corporation’s revenue streams to support its core mission of providing affordable Hajj and Umrah services.

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Responding to a question in Parliament from Fuvamulah Central MP Ali Fazad, Hajj Corporation Managing Director Mohamed Shakeel explained that the corporation faces significant financial challenges, with each pilgrim incurring MVR 100,000 in pilgrimage expenses. Additionally, the corporation itself incurs MVR 30 million in operational costs.

Shakeel highlighted that the corporation has been exploring low-risk real estate ventures to offset these costs and achieve profitability. Among these initiatives is the development of luxury apartments in Hulhumalé, with construction expected to commence in the coming months.

Hajj Corporation currently operates at an annual loss of MVR 40 million, Shakeel noted, attributing much of this to limited access to foreign currency. To address this, the corporation has partnered with a subsidiary of the Maafushi Council to build the city hotel and expand halal tourism options on the island.

Shakeel confirmed that land for the hotel project has already been secured. “We have arranged for a suitable plot on Maafushi and are in discussions with potential investors. Given Maafushi’s status as a well-established tourism hub, we consider this a low-risk venture. We anticipate that this project will generate revenue in foreign currency, helping to alleviate our financial pressures,” he said.

He further added that without diversifying income sources, it would be challenging to reduce pilgrimage costs for Maldivian pilgrims.