Policy Secretary at President's Office, Ahmed Hamdhaan, has announced the administration is working on tax concessions for businesses based in Addu City.

In a Tweet on Sunday, Hamdhaan said that the Hankede project has been designed in the most beneficial way possible for the residents of Addu City.

He added that the developments in Hankede will be leased to individual businesses, and the development of four 75-room guest-houses in Addu City will add an additional 300 rooms to the region.

He said that work is underway to provide finance for guest-house development in residential islands through SDFC's Contractor Finance Policy.

"Forty-four businesses have expressed interest in developing 58 plots under the project with the 15-20 year repayment period. This project amounts up to 2,870 tourist beds," Hamdhaan said.

Hamdhaan added that Addu International Airport (AIA) will has found a contractor to re-develop Dhoogas as a 130-room luxury hotel. The project also includes the development of an additional 50-room hotel as well.

"Dhoogas project, which is being financed by AIA's private shareholder will be signed soon. Additionally, the government is also working on giving tax concessions to the businesses in Addu City," Hamdhaan said.

Hamdhaan further stated that the administration will be investing in the existing resorts and development projects in Addu city as well. As such, work is ongoing on the reclamation of two 8.3 hectare islands which would add 500 tourist rooms to the region.

Hamdhaan said that once the project is complete, Addu City will have an additional 7,000 tourist beds apart from Shangri-La's existing 1,528 rooms.