President Dr. Mohamed Muizzu ratified the 13th Amendment to the Maldives Tourism Act (Act No. 02/99) on Thursday. The amendment, which was passed by Parliament on Monday, August 19, 2024, during the 30th sitting of its second session, introduces significant changes to the fee payment deadlines for lease period extensions on islands or land leased by the Ministry of Tourism.
Under the new amendment, the deadline for fee payments associated with lease extensions has been adjusted. The payment period for each year of extension has been shortened to six months. Whereas the leaseholders who choose to pay the fee within the first six months after the amendment to the Act takes effect will have to pay a fee of USD 100,000 per year, the amendment stipulates that the leaseholders opting to make the payment after the passing of this duration is expected to pay an annual fee of USD 200,000.
Further, the amendment revised how leaseholders of tourist resorts and integrated tourist resorts can extend their leases for an additional forty-nine years. In order for this revision to be applicable, the leaseholders are required to pay a lump sum of USD 5,000,000 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 10,000,000.
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, these islands may extend their leases by an additional forty-nine years, provided they pay the requisite USD 5,000,000 for the extension, along with any outstanding rent, fines, or taxes.
Following its ratification, the amended Act has been published in the Government Gazette and has come into effect.