Ali Slams Minister Over Airbnb Dispute

Developer Abbas Ali has hit back at the Minister for Lands Filimoni Vosarogo, claiming the minister was misinformed about the approval process for two property owners in Fantasy Island’s gated community to offer Airbnb services.

Mr Ali fired back at the minister’s remarks about “maximising their investment,” calling them “misconceived and irrelevant.”

He emphasised that the properties in question were zoned strictly for residential use, not for commercial purposes like Airbnb operations.

Zoning

Mr Ali pointed out that Fantasy Island was carefully designed to separate residential and commercial spaces, with the entire commercial activity concentrated in the designated commercial, tourism, and industrial precincts of Fantasy Marina. The residential area, he said, was kept separate from the commercial zone.

Mr Ali said all sale and purchase agreements included restrictive covenants that were originally issued to the buyers.

A residential lease document listed as number six stipulates that: “The demised land shall, together with the dwelling house and any necessary and any accessory outbuildings to be erected thereon, be used for residential purposes only.”

Sales and Purchase Agreement states:

No trade manufacture business or commercial undertaking (including the business of a guest house proprietor boarding housekeeper or hotel or motel operator) and no profession other than the profession of the medical practitioner, lawyer, or dentist shall be carried in the said lots and further, no rezoning of the Lot shall ever be allowed or entertained for any of the purposes herein prohibited except as zoned already for residential purposes only.”

Regulations

Mr Ali said on top of that, the company has approved Specific Building Guidelines controlling such activities which the Ministry of Lands was given a copy too.

In 2017 the Department of Town and Country Planning (DTCP) applauded the company on its efforts to prepare guidelines that will provide the framework for development, particularly residential in Fantasy Island.

“There are also lots zoned for “special use” such as commercial, villas, apartments, resorts, and rental units but people buy cheaper residential lots and use them for commercial activities such as Airbnb,” he said.

“There are 268 lots altogether and the restrictive covenants are in place to control any change of use apart from residential.”

About 14 Airbnb operators are based on Fantasy Island now, which instead of consulting the developers and the relevant ministry has bypassed procedures.

Mr Ali said in 1998 the company followed the regulation put out by the Department of Town and Country Planning.

“These operators want gated and security, their business thrived but did not take into consideration the company who foot the bill for maintenance of exclusivity.”

Consultation

He said now the minister wanted to meet and discuss which could have been avoided if consultation had been done before granting approvals.

He said the Ministry of Lands or director of Lands should have consulted them in the first place rather than now, as the minister ‘emphasised the importance of finding a balanced solution that respects the integrity of the gated community while allowing the property owners to maximise their investment.’

Mr Ali said change of zoning or use in the residential precinct would place unreasonable demand on the infrastructure such as sewer, water, and EFL power supply.

Mr Vosarogo has denied any wrongdoing in the approval of two Airbnb applications at Fantasy Island, insisting there was no “sinister motive” behind the decisions made by the director of Lands.

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