Gov’t Proposes Amendment to Tourism Act, Reducing Lease Payment Period

The government has proposed an amendment to the Tourism Act, seeking to reduce the payment period for extensions to the lease of islands and land allocated for tourism purposes.

The amendment aims to shorten the payment duration from the current two years to six months.

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The bill, introduced by Dhangethi MP Abdulla Rasheed, targets amendments to Article 9 of the Tourism Act. Under the existing law, payments for lease extensions of up to 50 years must be completed within two years. However, the proposed changes will require payments to be settled within six months.

According to the amendment, those who opt to settle the payment within the newly proposed six-month period will be required to pay USD 100,000 for each year of the lease extension. In contrast, those who choose to extend the payment period beyond six months will face a higher fee of USD 200,000 per year of extension.

Furthermore, the bill stipulates that lessees must clear all outstanding lease payments, fines, taxes, and fees owed to the state. However, this does not apply to lease payments and fines that have been extended through agreements with the Tourism Ministry.