Parliament passes bill to allow resort lease extension with low fee

Parliament has passed a bill amending the tourism law to extend leases for resorts or integrated resorts by paying a lower fee.

The bill, introduced by the government allows the lease term of a resort to be extended for another 49 years if certain conditions are met. These conditions include the lessee paying any rent, penalty, tax, or fee due to the government. The 13th amendment to the act requires a lump sum payment of $5 million for lease extensions up to 49 additional years, followed by a fee of $10 million. For extensions up to 50 years, a fee of USD 200,000 per year is required.

Upon ratification by President Dr. Mohamed Muizzu, resorts will have a six-month opportunity to extend the lease by paying a smaller fee of $5 million instead of $10 million.

Source: Atoll Times

Read more on the issue: Tourism Law may change again: Thirteenth Amendment