Minister of Economic Development Fayyaz Ismail has stated an income of at least USD 15 million is expected from private island acquisition fees next year.
Speaking at the Parliament of the Maldives regarding the proposed amendments to the Tourism Act to generate additional revenue to the state, Economic Minister Fayyaz said the government has decided to lease islands to private parties on a long-term basis to be developed as private islands and used as second homes. The minister said the private island concept will help to generate a significant amount of additional revenue and pay off state debt. He noted the government expects to generate atleast USD 15 million from every 3-4 hectares of land developed as private islands.
Speaking further on the concept, Minister of Tourism Dr. Abdulla Mausoom said existing islands will not be leased under this concept. The minister said parts of lagoons will be leased to reclaim and develop private islands, creating additional land for revenue. He said the government will generate a large amount of land rent, acquisition fees and tax revenue from the islands.
The proposed amendment to the Tourism Act states USD 1 will be charged as land rent for private islands developed upon reclamation of lagoons.