Fees to extend lease may be paid within 18-months: Tourism Minister

Minister of Tourism Ahmed Adheeb has said his ministry is willing to extend lease periods of tourist resorts to 50 years and allow the subsequent fee to be paid within a 18-month period.

Minister Adheeb revealed this while speaking at the parliamentary committee reviewing the government’s revenue bills.

“Parties with large investments in Maldives have paid the lease. But some individuals are finding it difficult and the government is willing to stretch the current 3 months to 18 months,” Adheeb said.

Only 18 parties accepted the deal when the government last opened to pay the cumulative lease extension fee for an extension of 50 years.

Adheeb explained that due to cash flow constraints, the fee is important to the government. Tourism GST needs to be increased and maintained at 12 percent for at least the next 4 years, stressed the Tourism Minister.

He said that regardless of the challenges, Maldives is in dire need of economic reform and that land reform granting foreign ownership must take place in the Maldives.

The banks no longer accept 40 to 50 lease periods to develop resorts, Adheeb said, and if the government was to grant leases up to 99 years, a large number of investors will be willing extend existing leases, he said.

“A lot of politicians say we will lose the islands for 50 to 90 years. Well, they cannot take the islands abroad. The islands will be operated in this country,” said Adheeb.