13th Amendment to the Tourism Act: What You Need to Know
The 13th amendment to the Tourism Act recently passed by Parliament, focuses on extending the lease period of resorts and introduces changes to the associated fees.
Key Highlights of the 13th Amendment to the Tourism Act are:
Lease Extensions
The new amendment retains the framework of lease extension of leases with less than 50 years and lease extensions to 99 years but modifies the fee structure for such extensions.
Reduced Fees within Six month
A previous 10th amendment to the Tourism Law in 2020 introduced a discounted lease extension fee only if it is paid within a two-year window. This window expired on 27 December 2022.
The new amendment reintroduces similar reduced fees but the lessee is only eligible if the fee is paid within a new six-month window from 29 August 2024.
Fee Structure
The new fee structure with the 13th amendement are as follows:
Extension for 99 years:
Within the first six months from 29 August 2024: $5 million fee.
After six months: $10 million fee.
Extensions shorter than 50 years:
Within the first six months from 29 August 2024 : $100,000 per year of extension.
After six months: $200,000 per year of extension.
The six-month window for reduced fees began on the date the amendment is published in the Government Gazette. That is [insert date].Resort operators are encouraged to act quickly and begin the lease extension process before this six-month period ends on 29 August 2024.
Nasheed & Co is closely following developments in Maldives tourism law and is available to assist clients with navigating the legal landscape. Contact us if you need any assistance.
