Parliament on Monday passed a bill to amend the Tourism Act, proposing changes to lease extension fees for resorts and integrated resorts.
The bill was introduced by MP Abdullah Rasheed on behalf of the government and was approved by parliament with a majority of 76 votes on Monday.
The current Tourism Law allows leases to be extended for up to 49 years if the lessee meets certain conditions. These conditions include payment of all fees, such as rent, penalties, taxes and fees, due to the government, but do not include rent and penalties that have been deferred under specific agreements with the Ministry of Tourism.
The 10th amendment to the act, passed on December 27, 2020, outlines the following:
- Lease extensions of up to 49 years will require a one-time payment of $5 million for the first two years, beginning Dec. 27, 2020, and fees of $10 million thereafter.
- For lease extensions up to 50 years, annual payments were set at $200,000 after the end of the initial two-year term.
The new proposed amendments would adjust these requirements as follows:
- For lease extensions of up to 49 years, a lump sum of $5 million will be required to be paid within six months of the effective date of the amendment, after which the fee will increase to $10 million.
- For lease extensions of up to 50 years, $200,000 per year must be paid within six months of the effective date of the amendment, and an additional $200,000 must be paid for any extensions beyond six months thereafter.
If ratified by President Mohamed Muizz, resorts will be given a six-month lease extension for paying $5 million instead of the previously stipulated $10 million.
