Parliament on Monday approved an amendment to the Tourism Act, granting a six-month extension to the reduced fee window for resort lease term extensions.
The current government’s amendment allows resort operators an additional six months from the date of the amendment’s adoption to extend their lease terms at the reduced price of US$5 million. After this period, the fee will revert to US$10 million, in line with previous stipulations.
The amendment, proposed by the government last week, was passed with 76 votes in favour, with no members voting against it.
Under the existing Tourism Act, an island or land parcel can be leased for up to 50 years to develop a resort or integrated resort. The lease term can be extended by an additional 49 years if specific conditions are met.
An amendment to the Tourism Act by the administration of former President Ibrahim Mohamed Solih allowed lease extensions by paying a one-time payment of US$5 million for a 49-year extension if made within the first two years of the amendment’s enactment. After this period, the extension fee increased to $10 million, which could be paid in instalments.
The two-year window for the reduced payment is set to expire on 27 December 2024, meaning any extensions sought after this date would require the full $10 million payment.
The six-month period will begin from the date of publication in the Government Gazette following the amendment’s passage by Parliament and approval by the President.