Maldives President Dr. Mohamed Muizzu has ratified the 13th amendment to the Maldives Tourism Act (Act No. 02/99) on Thursday, August 29, 2024.
The amendment, which was passed by the Maldives parliament on August 19th, during the 30th sitting of its second session, introduces changes to the fee payment deadlines for lease period extensions on islands or lands leased by the Ministry of Tourism.
With the new amendment, the deadline for fee payments associated with lease extensions has been adjusted, with the payment period for each year of extension shortened to six months. Leaseholders who choose to pay the fee within the first six months after the amendment to the Act comes to effect, will have to pay a fee of USD 100,000 per year.
The amendment also stipulates that the leaseholders who opt to make the payment after the passing of this duration is expected to pay an annual fee of USD 200,000.
Moreover, the amendment revised how leaseholders of tourist resorts and integrated tourist resorts can extend their leases for an additional forty-nine years, for which leaseholders are required to pay a lump sum of USD 5 million within the first six months of its implementation.
However, if the payment is delayed beyond the six-month window, the fee will double to USD 10 million.
Additionally, the amendment has modified provisions related to lease extensions of islands leased under number 5 of Section 5(j) and Section 16-16(e) of the Tourism Act. Through this amendment, the leaseholders of these islands can extend their leases by an additional forty-nine years, provided they pay the requisite USD 5 million for the extension, along with any outstanding rent, fines, or taxes.
The new amendment is now in effect and has been published in the Government Gazette.