Zameer: No positive outcome from Hajj Corporation’s guesthouse venture

Finance Minister Moosa Zameer, on Tuesday, has advised the board of directors and shareholders of Maldives Hajj Corporation reconsider their decision to venture into the guesthouse business, adding there would be no positive outcome if all companies were to engage in such businesses,

Minister Zameer responded to questions from lawmakers during Tuesday’s parliamentary sitting. Velidhoo MP Mohamed Abbas questioned the Minister regarding the outcome once Hajj Corporation enters the guesthouse business.

In response, the Minister said there will be a positive outcome if the company manages it excess funds by contracting specialists to generate a profit. He noted that there are state-owned companies that has a capacity to invest in tourism.

However, he stressed that there will no positive outcome fi all these companies were to venture into guesthouse businesses.

“If considering Hajj Corporation, when funds are received, they are handed it over for management. To send individuals to Hajj with those funds. Thus, I feel that Hajj Corporation’s board and shareholders need to reconsider whether the venturing into guesthouse business is the most beneficial course of action,” he said.

“However, I stress my belief that there will be no positive outcome if all companies from HDC to Hajj Corporation or Fenaka begin to develop guesthouses or resorts,” he added.

Maldives Hajj Corporation’s Managing Director Mohamed Shakeel announced the company’s decision to venture into the guesthouse business by developing a city hotel in K. Maafushi under the halal tourism model back in November.

As per the Shakeel, this was a bid to transform the company into a profitable business.

While speaking at Parliament’s Government Oversight Committee, Shakeel said the Hajj Corporation presently escorts pilgrims to Hajj at a loss.

The current price for Hajj was fixed in 2013 at MVR 69,965. With the hike in the prices of goods, airline tickets and accommodation among other things since then, some MVR 100,000 is incurred by the Hajj Corporation to escort pilgrims to Hajj at present.

Thus, Shakeel underscored the need to transform Hajj Corporation into a company that profits in order to reduce the price of Hajj. In this trajectory, he revealed the company’s decision to invest in business with light risks for which efforts are currently being undertaken.

The current administration had earlier decided to allocate all Hajj quotas received by the Maldives to the state-owned Maldives Hajj Corporation without any allocations to private groups.

However, Islamic Minister Dr. Shaheem Ali Saeed recently revealed that the government is considering allocating opportunities to escort pilgrims for private groups if the Maldives receives additional Hajj quotas.