With effect from 19th March 2025, the government has lowered the costs associated with resort lease extension terms and instituted an option for installment payments.
The change comes after a recent update to the Tourism Act was approved by parliament on 19th March 2025, and approved by President Mohamed Muizzu that same day in the afternoon. 55 out of 67 members voted in favor of the bill, while seven members against it, and it was passed with the changes suggested by the Economic Committee. The government gazette has now published the law.
Resort lease extension fees are reduced as a result of the adjustment. Last August, a comparable price cut was proposed; however, the six-month implementation period ended on 29th February. This concession is extended for an additional six months by the recently passed amendment. Resort owners will receive a 50% charge reduction till September if they seek for an extension during this time.
Under the previous regulation:
- A resort lease extension to 49 years required a payment of $10 million.
- For shorter extensions, the fee was $200,000 per year.
Under the amended regulation:
- A resort lease extension to 49 years will cost $5 million if applied within the next six months.
- A 20-year extension will cost $2.5 million.
- A 25-year extension will cost $3 million.
At first, there was no option for installment payments in the proposed bill. However, for a 49-year extension, one provision introduced at the committee stage permits payments to be made in installments.
Under the instalment plan:
- An initial lump sum payment of $1.5 million is required.
- The remaining amount can be paid within 12 months ($4 million) or 24 months ($4.5 million).
- The total amount payable in installments will exceed $5 million.
The Ministry of Tourism will produce rules with more information on how these provisions will be implemented.
