Parliament of the Maldives has passed the proposed amendments to the Tourism Act, to allow additional revenue to be generated through the long-term lease of private islands.
The amendment bill to the Tourism Act was submitted by Parliamentarian Ali Azim, on behalf of the government. The bill was passed with votes from 57 parliamentarians.
The bill aims to generate additional revenue to the state by leasing islands for private island development, and through tourism development projects and real estate development projects. The bill also allocates the tourism development regions and islands as well as yacht harbours. The approved bill states land rent will be generated at a rate of USD 1 per square meter for areas leased for private island development.
Speaking on the bill, Minister of Tourism Dr. Abdulla Mausoom said existing islands will not be leased for private island development. 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.