The government of the Maldives has decided to decrease the land rent on islands leased for tourism purposes in an effort to develop tourism in outer atolls.
In a tweet, Minister of Economic Development Fayyaz Ismail, who is also the acting Minister of Tourism, stated the purpose of the amendment is to encourage tourism in atolls far from the capital. The government expects the amendment to boost tourism-related investment in the atolls.
The proposed amendment includes offering USD 2 per square metre as rental lease from Addu City and Fuvahmulah City, and taking USD 4 per square metre from Haa Alifu Atoll and Haa Dhaalu Atoll. The proposed rate for land rent of islands leased for tourism purposes in Shaviyani Atoll, Gaafu Alifu Atoll, Gaafu Dhaalu Atoll, Thaa Atoll and Laamu Atoll is USD 6 per square metre. Islands in all other atolls will require a land rental of USD 4 per square metre.
Additionally, the proposed amendment also includes USD 800,000, USD 1 million and USD 1.5 million as the maximum land rental fees respectively, for the four categories mentioned. Moreover, the proposed amendment also includes changes to land rent to be charged on facilities developed for local tourism.
A fee of USD 1 per square metre will be charged for facilities in Addu City and Fuvahmulah City with a maximum rental of USD 400,000 per month while the fee charged in Haa Alifu Atoll and Haa Dhaalu Atoll is USD 2 per square metre with a maximum rent of USD 500,000 per month. Rent in the regions of Shaviyani Atoll, Gaafu Alifu Atoll, Gaafu Dhaalu Atoll, Thaa Atoll and Laamu Atoll is USD 3 per square metre with a maximum land rent of USD 800,000 per month. The proposed land rental in all other islands is USD 4 per square metre, with a highest monthly rent of USD 1 million.
The government has decided to decrease land rent in islands leased for tourism purpose at a time the land rent of all resorts have been deferred for a period of six months amid the COVID-19 pandemic.