Amendment to Tourism Act to extend resort lease periods to 99 years for USD 100,000 per year
This is the third time amendments to the Maldives Tourism Act have been proposed during the incumbent administration
Dholhiyadhoo resort
The government has submitted an abrupt bill to the People's Majlis to amend the Tourism Act, allowing resort lease periods to be extended to 99 years by paying the government at a rate of only USD 100,000 per year.
This amendment to Law No. 2/99 or the Maldives Tourism Act was submitted as a government-proposed bill, by MP for Thimarafushi constituency Ahmed Riyaz. According to information received, the bill was scheduled for Tuesday's parliamentary sitting.
In addition to easing payments for extending resort lease periods, the amendment also proposes changes to the law to allow islands, land, or lagoons to be leased for tourist resort or integrated tourist resort development as cross-subsidies in connection with any project designated by the government.
Currently, Article 5 of the Act states that islands, land, or lagoons can be leased for tourist resort or integrated tourist resort development as cross-subsidies to parties entrusted with or funding important projects designated by the government under economic or social policies aimed at achieving public benefit, in accordance with pre-announced principles.
However, the proposed amendment states that islands, land, or lagoons can be leased for tourist resort or integrated tourist resort development as cross-subsidies to parties entrusted with or funding important projects designated by the government under economic, social, or any other important policy aimed at achieving public benefit.
By including "any other important policy" without specifying a particular policy, allowing islands, land, or lagoons to be leased for tourism development in connection with any project designated by the government, it is noted that this is intended to enable President Dr. Mohamed Muizzu to directly allocate islands, lagoons, and land to whomever he wishes in connection with any project.
This is the third time amendments to the Maldives Tourism Act have been proposed during the incumbent administration. Earlier, changes were made to the Act twice.
Industry experts continue to characterize the frequent, hasty amendments to the Act without any principles or plans as indicative of the lack of a robust tourism policy in the Muizzu administration.
