The Parliament has approved an amendment to the Tourism Act to extend the lease term for islands or land used for low-cost tourism.
The amendment bill was introduced by Parliamentarian Abdulla Rasheed and it was reviewed and passed by the Parliamentary Whole House Committee. It was approved with 76 votes in favour and no votes against.
Previously, the law required a payment of USD 200,000 for each additional year of lease and a lump sum of USD 10 million in extension fees. The new amendment stipulates that within six months of the enactment of the bill, individuals can opt for a reduced rate which is, USD 100,000 per additional year and a lump sum of USD 5 million in extension fees, provided they make the payment in full.
The original rates of USD 200,000 per extended year and USD 10 million in extension fees will apply, after the six-month period. The amendment aims to offer investors an opportunity to extend their lease on islands or resorts for tourism purposes. Under the existing Tourism Act, islands and land designated for tourist resorts can be leased for up to 50 years from the date of handover to the lessee.