The Board of Directors of State Trading Organisation (STO) has decided to temporarily halt the company’s plans to buy a resort.
Managing Director of STO Shahid Ali said that the purpose of buying a resort was to strengthen the company and to increase its foreign currency earnings; however, the current economic conditions are not the most ideal for buying a resort.
STO used to own the resort operated at Adh. Vakarufalhi, but sold it to Athama Company in 2007 for $3.7 million, citing the company’s bad financial situation as a reason.
STO was given the chance to develop B. Muthaafushi as a resort under the CSR component following taking over the Fuvahmulah Airport development project. According to Shahid, STO’s current priority is to develop B. Muthaafushi.
Efforts are also currently underway by STO, to open a City Hotel in Hulhumale’ in collaboration with American hotel chain, Radisson.