Parliament Approves Amendment to Reduce Tourism Lease Fees

The Maldivian Parliament has approved an amendment to the Tourism Act that extends the lease term for islands or land designated for low-cost tourism. The amendment, introduced by Parliamentarian Abdulla Rasheed, was reviewed and passed by the Parliamentary Whole House Committee with 76 votes in favor and none against.

Previously, the law mandated a payment of USD 200,000 for each additional year of lease, along with a lump sum of USD 10 million in extension fees. The newly approved amendment offers a more affordable option for investors. If payment is made in full within six months of the bill’s enactment, the new rates will be USD 100,000 per additional year and a lump sum of USD 5 million in extension fees.

The original rates will apply after the six-month period expires. This amendment is designed to provide investors with an opportunity to extend their leases on islands or resorts designated for tourism at a more economical rate.

Under the current Tourism Act, islands and land designated for tourist resorts can be leased for up to 50 years from the date of handover to the lessee. The reduction in extension fees aims to make it easier for investors to continue their operations in the Maldives' thriving tourism sector.