Earlier this year, Kaani Hotels & Tours received official confirmation from the Ministry of Tourism regarding the tender for resort development on Bodufinolhu in Vaavu Atoll. However, this decision sparked significant controversy as Bodufinolhu, known as a popular sandbank, has long been a favored destination for tourists seeking day trips from both Kaafu and Vaavu Atolls. In response to this, the Vaavu Atoll Council, along with several guesthouse operators who frequently send guests to the sandbank, raised serious objections and even organized protests.

Amid the public outcry, Kaani Hotels willingly requested the government to find an alternative site for their project, expressing their readiness to abandon Bodufinolhu despite having complied with all required bidding processes and having covered the necessary fees after securing the tender. In response, the government offered Medhufalhu, another location within Vaavu Atoll, as an alternative site for their resort development.

However, the Vaavu Atoll Council has once again issued a statement, this time expressing concerns regarding the proposed development on Medhufalhu. Their objections hinge on environmental issues; Medhufalhu is adjacent to the Miyaru Kandu area—an expanse of 1,382.54 hectares that has been designated a protected zone since 1995. The council has raised alarms regarding the potential ecological impact of resort development in such proximity to a sensitive habitat.

Moreover, the council highlighted their frustration over the lack of prior consultation with local stakeholders in the decision-making process. They underscored that according to Act 7/2010, the government is mandated to engage in thorough discussions with the atoll council before any lease is granted for inhabited or uninhabited islands within that atoll’s jurisdiction. The council lamented the government's failure to adhere to this legal requirement, emphasizing the need for inclusive dialogue regarding proposed developments that could disrupt the local ecosystem and community.

As discussions continue, it remains to be seen how the government will address these pressing concerns raised by the Vaavu Atoll Council, and what impact this will have on the future of resort development in the area.