A measure to alter the Tourism Act that would enable Maldives resort lessees to renew their leases for a discounted price has been filed by the government to parliament. On behalf of the administration, MP Abdulla Rasheed proposed the measure.
At the moment, Maldives resort leases may be extended for a further 49 years under Section 9(a) of the Tourism Act, given that the lessee satisfies certain requirements. One of these requirements is that the lessee pay all amounts owing to the government, including rent, fines, taxes, or fees, unless the tourism ministry agrees to postpone payment in an agreement.
Effective December 27, 2020, the 10th amendment to the statute mandates that resort operators pay a $5 million charge during the first two years of the lease in order to extend it. After this time, the 99-year lease’s extension cost rises to $10 million.
The act’s proposed modification to Article 9(a)(2) aims to change the payment plan:
- Within six months after the amendment’s effective date, a $5 million charge would have to be paid.
- Following this half-year period, the charge would increase to $10 million.
The chance to renew resort leases at the $5 million cost would have ended in December 2022 under the existing legislation. In the event that the amendment is approved, resort owners would not have to pay the additional $10 million, but would instead have an extra six months to extend their leases at the reduced rate.
