Muizzu Ratifies Amendment to Maldives Tourism Act

President Dr Mohamed Muizzu ratified the 13th amendment to the Maldives Tourism Act (Act No. 02/99) on Thursday.

The amendment, passed by parliament on August 19, 2024, during the 30th sitting of its second session, introduces new deadlines for fee payments associated with lease period extensions for islands or land leased by the Tourism Ministry.

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Under the revised provisions, the payment period for each year of lease extension has been shortened to six months. Leaseholders who pay the fee within the first six months after the amendment takes effect will be required to pay USD 100,000 per year. Payments made after this period will incur a fee of USD 200,000 annually.

Additionally, the amendment allows leaseholders of tourist resorts and integrated tourist resorts to extend their leases for an additional forty-nine years, contingent on a lump sum payment of USD 5 million within the first six months. If this payment is delayed, the fee will increase to USD 10 million.

The amendment also updates the lease extension provisions for islands leased under Section 5(j) and Section 16-16(e) of the Tourism Act. These islands can extend their leases for an additional forty-nine years, provided they pay USD 5 million, along with any outstanding rent, fines, or taxes.

Following the presidential ratification, the amended Act has been published in the Government Gazette and is now in effect.

The current administration is implementing measures to boost state revenue and increase foreign currency income, aimed at addressing the country’s fiscal and debt challenges.