USD 97 Million in Unpaid Resort Rent Includes Operating Resorts

Tourism Minister Mohamed Ameen stated today that USD 97 million owed to the State in resort rent and fines remains uncollected, adding that the Ministry of Tourism is actively working to recover these funds.

Speaking at a press conference held at the President’s Office today, the Minister stated that while there is talk about resorts not paying rent, the majority of stakeholders in the industry are compliant individuals who pay their taxes and rent to the State in accordance with laws and regulations.

However, he noted that the failure to collect revenue owed to the State due to a small minority remains a major issue. Ameen stated that those failing to pay rent include currently operational properties as well as places that have been closed without the ministry’s permission for various reasons.

“Significant progress has been made. By establishing a framework to take action against them within the established regulations and through discussions with them, efforts to recover these funds are currently underway,” he said.

According to the Minister, those who have failed to pay rent include companies that have not paid any rent since 2013. He stated that as the ministry initiated efforts to recover the uncollected funds owed to the state, necessary measures would also be taken against these companies.

He stated that the results of the work initiated by the Tourism Ministry were also good.

The report published by the Auditor General’s Office last year also noted that providing numerous concessions on the rent owed by resorts to the state and forgiving rental fines encourages resorts not to pay their rent.